As per the valid source of The Times, two football clubs having short of cash are expected to introduce their crypto tokens in order to ward off financial complexities that they are facing at present. The two renowned football teams the English Premier League teams – Newcastle United and Cardiff City are in the middle of the conversation with SportyCo, a decentralized sports investment and funding platform in order to introduce their Initial Coin Offering (ICO) round. SportCo has already partnered with Avai Futebol Clube to raise for them almost $20 million through a public sale of AVAI Tokens. The company is also said to be a principal sponsor of Espanyol which is the world’s top football team.
The strategic partnership will consolidate both the clubs to initiate the selling of their private digitized tokens as securities or utilities. All those who are interested will purchase the tokens and they will either participate in the proportion of the revenue or receive additional benefits using the token on game purchases.
As per the valid source, the financial health of both Newcastle United and Cardiff City are really poor. Newcastle United has already lost the certain percentage of profits due to improper managerial decisions were taken by the owner of the club Mike Ashley Cardiff City. The Club is facing a high debt burden of more than $150 million. Besides heavy debt burden in place, Cardiff cut the wage bill amount to £20.6m which is declined by almost 18%.
Both the clubs are believed to have admitted having lower budgets in place that hamper them to scale at an upper level. However, Sir John Madejski, a prominent figure in the Premier League said that those who are nervous having deep pockets, it’s really difficult to round a football club especially when the club losses.
The major reason for football clubs to incur huge losses is due to the low governance of their capital. The wages of footballers are skyrocketing with heavy commissions paid to their agents lead the entire club to incur losses. In order to streamline the current status of the football club, it’s not worthwhile to say that it should be governed only by the rich community. Let us not forget that the football clubs are likely to go public.
At this juncture, the ICOs streamlines the entire ecosystem by allowing organizations to raise sufficient funds by selling digitized tokens either through proof of ownership or tools to utilize the discounts fully. With the digitized crowdfunding method in place, the clubs are actively exploring to raise funds to build blockchain-based applications.
Further speaking to the matter, Marko Filej, SportyCo’s Co-founder mentioned in his statement that “money raised from the crowd sale goes straight into club infrastructure which will stay with the club forever. With this initial money offer, we are opening a new chapter in football and the sports industry in general.”