Newcastle United and Cardiff City, both struggling in the Premier League, are reportedly engaging in discussions to launch a cryptocurrency aimed at raising funds for the January transfer window.
According to The Times, these two clubs are exploring the potential of Initial Coin Offerings (ICOs) in collaboration with decentralised sports funding platform SportyCo and investment company Blackbridge. The proposed ICOs would allow fans to purchase tokens, granting them a stake in future club revenue or access to tickets and merchandise. This blockchain-based funding model is believed to democratise the financial operations of the clubs, providing fans with a more significant voice in how funds are utilised.
SportyCo co-founder Marko Filej highlighted the potential advantages of this funding model, stating, “Money raised from the crowd sale goes straight into club infrastructure which will stay with the club forever.” Filej emphasised that this initiative could mark the beginning of a new era in football and the sports industry.
The report indicates that Newcastle and Cardiff aim to raise £15 million each through their respective ICOs. Both clubs are currently facing challenges to remain in the top flight, with comparatively limited transfer funds available. The introduction of these ICOs could provide much-needed financial support to bolster their squads during the transfer window.
This development aligns with broader trends in the sports industry, where other notable clubs are also exploring cryptocurrency ventures. For instance, Barcelona-based Liga club Espanyol has SportyCo as a shirt sponsor, and French giants Paris Saint-Germain are considering a similar move into the crypto space.
Fundamentally, this initiative reflects a growing trend towards innovative financial solutions in the sports world, driven by the need for enhanced financial stability and greater fan engagement. The success of these ICOs could potentially revolutionise how clubs manage their finances and interact with their supporter base.
If successful, the cryptocurrency ventures pursued by Newcastle United and Cardiff City could provide a vital financial boost and reshape the financial landscape in football.