By Joe Brennan
Fan tokens are something that are growing in prominence in sport. Non-fungible Tokens (NFTs), which are designed to bring fans of their respective disciplines closer to their heroes, are spreading in popularity around the world. From Formula 1, the UFC, Indian Premier League Cricket, and Davis Cup, blockchain technology is making its way through some of the world’s most recognisable brands.
However, it is in football where this new digital fan offering is thriving the most. New partnerships are popping up all over the world, from the MLS in America to the Ballon d’Or awards, where fan tokens were available for attendees to purchase. European football has led the growth with Italian giants AC Milan, Juventus and Roma all huge advocates of the NFT. Football Italia recently reported that Inter Milan quickly sold all of their 1 million tokens, adding around £1.7million to the club’s balance sheet. But it’s not just on the continent where they are prominent, as clubs in the Premier League here in England are also very aware of developments.
Many clubs across the capital have considered the benefits of the connection with crypto as positive; beginning with West Ham and latterly Arsenal. The North London club partnered with fan token provider Socios back in July, and the industry has since exploded in popularity. Fans are clamouring to get involved and take advantage of the benefits offered by owning digital tokens. These include the ability to exercise influence over certain decisions made within their clubs. While fans cannot yet pick the team or decide who they could sign next, they can influence what pre-match music is played and give their opinion on what message should be on the captain’s armband, something which Barcelona have used the platform for to great success. Token ownership also brings options for VIP tours, exclusive competitions, and ‘loyalty bonuses’, but Arsenal have not yet revealed what those would look like.
Interestingly, while the tokens don’t give the purchaser equity within the club, fans are still recognising the value of purchasing the tokens, helping fund Arsenal’s Premier League ambitions. The demand from supporters for the new offer quickly drove up the price of the tokens, with the value of the Gunners’ currency rising by over 115%. They promptly sold out, proving the tokens as a sound investment. Arsenal have benefited financially from this growth, as 50% of the revenues earned from the sales head straight to them. West Ham have since partnered with Yield, a FinTech company that allows users to invest in digital assets and has suggested they could earn as much as 20.5% annual interest. West Ham are also offering competitions and prizes, luring fans in with the extra interaction with their club.
Overall, investment opportunities for supporters have become an attractive developing area for the football industry, as clubs continue to look for new ways to further fund their growth. Football fans have previously invested in their club due to their loyalty and have had very little influence or return. These new options present a chance to give them more than a simple sense of commitment to their cause.
This is a sponsored post for which the London Financial was compensated for sharing.
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