In less than 10 days, the Green Bay Packers sold 138,000 shares in November.
But fans, who spent a combined $ 41.4 million, received nothing in return that looked like traditional stock. In reality, they don’t get much more than a piece of paper. âInvestorsâ who buy the shares can in no way profit from the purchase, according to the Packers website.
This is where Socios.com – a blockchain-based token company that partners with sports teams – sees an opportunity to actually invest in sports teams.
âWe’ve seen a big, big surge in fan numbers,â Socios.com chief strategy officer Max Rabinovitch recently told Yahoo Finance Live (video above). âObviously, the first people who found our productâ¦ were people who were already familiar with crypto, and we’re seeing more and moreâ¦ a growing percolation of casual and more traditional fans coming to the app. “
‘Mmarket-induced demand ‘
Socios.com allows users to participate with various teams by investing in Fan Tokens for their respective favorite sports teams.
Fan Tokens work like other cryptocurrencies or stocks, increasing or decreasing in value based on fan sentiment. The more fans participate in the different activities of the club, the higher their ranking.
âIt’s market driven demand,â Rabinovitch said. “The more fans who want to enter this ecosystem, the higher the token goes.”
FC Barcelona, ââJuventus FC and Paris-Saint Germain (PSG) FC all have tokens with Socios.com. PSG tokens were part of international superstar Lionel Messi’s contract when he moved to the club in August, and there are currently 3.1 million PSG tokens in circulation, per Coinbase. The token has a market cap of $ 51.9 million and is currently trading around $ 16 per token.
Teams make money with initial offers, but the key is direct lifeline with the consumer with token holders for special offers that can initiate increased fan engagement. Some teams have organized special events such as meetups for token holders who often interact with the platform.
“We go to the NFL and to the MLS”
If this all sounds foreign to an American sports fan, it should. Socios.com has not created tokens for any of the four major sports leagues in the United States, but changes could happen.
Rabinovitch told Yahoo Finance that Socios.com modeled its initial concept on the Green Bay Packers’ stock offering, with the aim of taking the appeal of Packers fans a step further by gamifying the situation.
And on November 12, Socios.com partnered with Kraft Sports & Entertainment in a marketing deal that will provide visibility to Socios.com at Gillette Stadium during New England Patriots and New England Revolution games ( Major League Soccer) as well as advertising space on the roof of the Patriots training center.
The partnership will not be the NFL’s introduction to blockchain and cryptocurrency partnerships, which the league has yet to commit to. Yet this is another step in the US market, where Socios.com has already entered into marketing partnerships with more than half of NBA franchises.
âIt’s kind of our first public signal that we’re also going into the NFL and MLS,â Rabinovitch said. “And it’s not something we take lightly because there’s a long road, let’s say, silent and invisible that leads to a point where we, where a team, where the league in which the team playing, we all feel comfortable enough that we’re allowed, in essence, to make a big splash publicly and announce our intention to enter this new sporting vertical.
Josh is a producer for Yahoo Finance.
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