Football clubs around Europe are increasingly turning to virtual “fan tokens” to raise money and enhance fan engagement. And the money can pile up fast.
The latest club to enter the world of blockchain, Spanish champion Barcelona, generated EUR 1.2 million (USD 1.3 million) in less than two hours on Monday. The 600,000 Barcelona cryptocurrency-based tokens, which sold for EUR 2 (USD 2.20) each, give fans exclusive voting rights in club-specific polls and can give them a chance to win rewards that could include watching games as VIP guests or meeting with players.
Barcelona joined Paris Saint-Germain, Juventus, Roma, Atletico Madrid and others using blockchain.
The buyers can also make money in return by trading the digital assets at a price determined by the market’s supply and demand, and ultimately by the team’s performances and actions. A team signing Neymar, for instance, could see the price of its tokens go up. A club facing relegation could see the price of its virtual asset go down.
Another batch of Barcelona tokens was put on sale, with the price rising 200 percent in the first five minutes of trading, Socios.com said. The trading volume hit USD 1 million in the first six minutes.
Owners can sell and trade their tokens using Chiliz, one of the many cryptocurrencies based on blockchain technology. The trading is done on Chiliz.net.
TAPPING FAN BASE.
For now, most clubs are highlighting “fan engagement” as the main advantage of their blockchain-based fan tokens. “For the biggest clubs in the world, 99.9 percent of sports fans are not actually in the stadiums, or even in the same city or country of the club that they are supporting,” Dreyfus told AP
“There is a lack of engagement and monetisation towards this global fan base,” he added. “All these fans have no significant way to have a voice and have an influence. By owning one of these fan tokens, suddenly you are being recognised, and more importantly, you have a voice and a right to vote on a decision that the club is asking you.”
Barcelona said the fan tokens are part of the club’s world-wide expansion strategy as it looks for new digital channels and formats to generate greater engagement with its international fan base. They have been incorporated as the club tries to develop “new streams for the generation of resources” and to become a “benchmark both on and off the field.” The first survey in which Barcelona token owners can vote on is related to the artwork of a mural that will decorate the dressing room at the Camp Nou.
Juventus was the first club to launch its fan tokens about six months ago, with its supporters choosing the celebration song that is now played when the team scores a goal.
ENGAGEMENT TOOL
The first PSG poll in February allowed fans to choose an inspirational message to go on the captain’s armband, and Galatasaray’s supporters picked the song played when the team enters the field. Roma fans voted on the name of a field at the club’s training centre, and Atletico Madrid’s supporters chose player Alvaro Morata to give exclusive insight into the club’s daily life. The fan tokens can be purchased via cryptocurrencies like bitcoin. - AP
The tokens became more significant engagement tool during the coronavirus pandemic. PSG players Edison Cavani and Thiago Silva sent personal messages to fans, and Galatasaray token owners gained life-sized cardboard photos of themselves in the team’s stadium. “The pandemic forced the clubs to look at the other 99 percent of fans that can generate revenue,” Dreyfus said. “It forced them to reconsider and to try to monetise their global fan base.”
