Two stone-broke football clubs, Newcastle United and Cardiff City, are trying to dodge the financial issues by planning to launch cryptocurrency through a tokenized crowdfunding round as reported by The Times.
Both the English Premier League teams are reportedly in conversation with SportyCo, a decentralized sports investment and funding platform, to launch their Initial Coin Offering (ICO) round. SportCo has prior partnered with Avaí Futebol Clube to raise them about $20 million through a public sale of AVAI tokens. The organization is likewise a main sponsorer of Espanyol, the world’s top football team.
This partnership would empower the clubs to start the sale of their private digitized tokens as securities/utilities. As interested members buy these tokens, they would either gain a specific stake in the clubs’ income or get extra benefits for utilizing the token on games-related purchases.
The Mag highlights the poor financial status of both Newcastle United and Cardiff City. Also, both Newcastle United and Cardiff City have accepted that they are battling for survival with lower-budgets.
Sir John Madejski, a prominent figure in the Premier League once said that running a football club is not for faint-hearted; that one has to have deep pockets to run them smoothly especially when most clubs run at a loss.
After understanding that running a football club can’t simply be a one-rich-man show, football clubs are opening up to the possibility of going public. ICOs to some extent improves the procedure by enabling organizations to raise funds by offering digitized tokens. The digitized Crowdfunding has helped many startups in the blockchain space to raise funds in the recent times.
“Money raised from the crowd sale goes straight into club infrastructure which will stay with the club forever, With this initial money offer, we are opening a new chapter in football and the sports industry in general.”
– Marko Filej, SportyCo’s co-founder
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