When Spanish striker David Barral made football history by transferring from Real Madrid to DUX International de Madrid with a transfer fee paid in Bitcoin, it signaled more than just a milestone in sports finance. It provided a glimpse into the potential future of how cryptocurrencies could reshape the financial landscape of football. Although this was the first transfer deal funded by Bitcoin, the relationship between football and cryptocurrency had been steadily growing. Increasingly, commercial ties between the two have become more common, with clubs and crypto firms finding mutually beneficial partnerships.
In 2018, seven English Premier League teams – Brighton & Hove Albion, Crystal Palace, Leicester City, Newcastle United, Southampton, Tottenham Hotspur, and Cardiff City – partnered with the investment trading platform eToro. eToro described this collaboration as “the first step in bringing the opportunity offered by Bitcoin and crypto assets to football.” This partnership marked the beginning of a trend where football clubs would leverage cryptocurrency to fill revenue gaps, especially those exacerbated by the Covid-19 pandemic. According to UEFA, the governing body of European football, clubs faced an estimated €9 billion loss in revenue due to the pandemic. Cryptocurrency partnerships provided much-needed funds and helped combat the perception that cryptocurrencies were obscure or even murky. By investing heavily in sports sponsorship, the crypto sector aimed to gain mainstream acceptance and credibility.
Italy’s Rimini FC became a notable example of this trend when it became the first club to be bought using cryptocurrency. Blockchain technology platform Quantocoin acquired a 25% stake in the third division side, setting a precedent for future acquisitions and investments. Fast forward to the previous year, and Dutch first division side AZ Alkmaar announced plans to become the first team to pay its players in Bitcoin. These developments highlight the growing integration of cryptocurrency in football’s financial ecosystem. The mutual benefits derived from such partnerships are evident: football clubs receive essential revenue streams, while cryptocurrency firms gain exposure and status. This symbiotic relationship has led to numerous high-profile collaborations, including those between big-name clubs like Manchester City, Barcelona, and Juventus with the crypto platform Socios. These partnerships allow clubs to issue digital ‘fan tokens’ that can be traded like other assets and offer real-world perks such as promotions, rewards, and discounts.
However, the journey has not been entirely smooth. The UK’s Advertising Standards Authority (ASA) banned two promotions for fan tokens from Arsenal football club, citing concerns that the ads misled supporters about the risks of investing in cryptocurrencies. The ASA accused the club of taking advantage of consumers’ inexperience and trivializing the investment in crypto assets. In response, Arsenal sought an independent review of the ruling to gain clarity on the ASA’s position. Beyond fan tokens, some clubs have ventured into the world of digital collectibles, known as NFTs (non-fungible tokens). These unique images and videos, akin to digital works of art, have become popular among fans and collectors. For instance, Juventus launched an NFT collection featuring a high-definition replica of the team’s home shirt for the 2021/22 season, complete with signatures from current squad members. By adopting NFTs, clubs like Manchester City, Juventus, and Glasgow Rangers are tapping into a new revenue stream and engaging with fans in innovative ways.
Despite the potential benefits, the tie-up between football and cryptocurrency is not without risks. The cryptocurrency market is highly volatile and largely unregulated in the UK, with the Financial Conduct Authority repeatedly warning investors about the risks involved. As football clubs continue to explore the possibilities offered by cryptocurrency, it remains to be seen how sustainable these partnerships will be in the long run. For now, the relationship between football and crypto represents a fascinating intersection of sports and financial innovation, offering a glimpse into the future of both industries. The unfolding narrative suggests a convergence of traditional sports finance with cutting-edge digital currencies, highlighting the transformative potential of this alliance.
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