You may find yourself trying out new ways to get a closer look at your favourite sports teams and clubs if you are a die-hard sports fan or enthusiast.
Perhaps this is why plenty of fans participate in fantasy sports, or watch games at bars, clubs, and restaurants to cheer together on their treasured teams.
As part of the latest upgrade, fans are now able to embrace sports in a unique manner thanks to fan tokens
Following the financially devastating effects of COVID-19 in recent years, top football clubs are generating funds through fan tokens to keep themselves afloat.
According to Deloitte Sports Business Group’s 24th edition of Football Money League, the 20 highest revenue-generating clubs in world football will have missed over €2 billion in revenue by the end of the 2020/21 season due to the COVID19 pandemic.
In 2019/20, the top 20 Money League clubs generated average revenue of €409 million, down from €464 million in 2018/19. These results are similar to those from the 2017/18 campaign; in no way can anyone deny that this is one of the toughest times in football history.
It has been extremely challenging to put together the 2021 Football Money League due to the absence of fans, postponement of matches and cancellation of games, rebates to broadcasters, and the need to satisfy commercial partners. Consequently, it is more challenging this year to compare relative performances among clubs.
A football club’s cash flow and equity are limited due to its structure. At best, as was the case before the COVID19 crisis, those best-managed clubs did not lose money (or little).
It is becoming more common for sports teams to use blockchain technology to their advantage during the pandemic disruption. To date, more than $200 million in COVID19 year revenues have been brought in by clubs that interact with fan tokens” actively traded by fans.
Through transactional engagement, more passive fans will become active fans, giving the post-physical world’s sports teams a powerful, long-term, sustainable revenue stream.
In deploying blockchain technology to connect with their fans, some European soccer clubs, NBA teams, and fantasy sports leagues have already gone a step further. It has been explored by teams and organizations how to draw their fan bases closer to them.
A few top sports brands sell digital assets – fan tokens – that give their fans a share of influence within the team, for example, club polls and reward programs for fans. A great example of a successful club poll, hosted on the most popular Fan Token platform, Socios.com, led to the change of the Juventus Allianz Stadium goal celebration song.
Just to name a few more, Roma, Atlético Madrid, Manchester City, Paris Saint-Germain have launched Fan Tokens. These tokens, minted on a blockchain, can be bought and sold, creating a powerful secondary market with some high volumes. When demand increases, the value of the Fan Token goes up, when the demand decreases, it goes down.
Football clubs have seen their revenues decline due to the pandemic, but fan tokens have surged in popularity. According to sports data aggregator FanMarketcap, their total market capitalization is $366 million
In addition to displaying data about market capitalization, trade volumes, price charts, and other types of data, as the sport data analytic firm shows the current value of fan tokens.
In the case of sports tokens, holders can frequently search for the latest coins, the ones with the most exciting prospects, or the ones that are undervalued.
Its obvious impact on decisions and success, how accurate a price tracker is will have an impact on an investor’s next investment move.
Clubs are also incorporating crypto products through Non-fungible Tokens.
Juventus, Manchester City, and Rangers have all released official NFTs, with some spending tens of thousands on these unique digital images and videos featuring embedded codes representing ownership.