Football finance specialist Kieran Maguire believes clubs have latched on to crypto because earnings from their other sources are starting to level off after consistently rising for decades.
Sports franchises are not only looking to earn the prize money and other benefits related to it, but also exploring other ways.
Exploring new revenue streams
The Guardian quoted Maguire as saying, “Football clubs have realized that we’re now at max broadcast revenues, with modest growth at most to look forward to.”
As far as commercial sponsors are concerned, we’re seeing deals being renewed but not with increased money. The only way to increase matchday sales is to raise prices, and fans are reluctant.”
When FC Barcelona played the 2021 Spanish Super Cup finals, the trophy wasn’t the only prize at stake. Fans were also watching the market for FCB’s “fan token”, the club’s very own cryptocurrency. Socios had promised to “burn” 20,000 tokens for every goal Barcelona scored – and 40,000 if they lifted the cup.
Even Binance is reportedly trying to explore the fan token market, suggesting there is space for growth, especially given that only a few dozen organizations have penetrated the market in any noteworthy way.
Fans buy tokens for the bonuses associated with it
Pedro Herrera, a senior blockchain analyst at DappRadar, said that most fans buy tokens for the associated bonuses, like votes on which music to play after a goal or entry into a draw to win a signed shirt.
He said, “It’s a win for the fan because they feel more involved; it’s a win for the team because it’s adding a layer of monetization, and it’s a win for the [crypto] industry because you attract the masses and it’s one step closer to mass adoption.”
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