Not long ago, you could only hear the words “cryptocurrency” and “sport” together when talking about Bitcoin-friendly betting sites. But with the meteoric rise of cryptocurrencies in 2018, it didn’t take long for digital assets to emerge from the world of gambling operators and step into the premier sports industry. The latest example to confirm this trend is the case of UEFA Champion’s League team Sporting Portugal (Lisbon), who is reportedly considering launching their own cryptocurrency to raise cash for the club.
Pressed for Cash? Get Crypto
Most people turn to cryptocurrencies in times when traditional financial institutions or the economy fails them. Such was the case in India, China, and now Venezuela, where a severe inflation left the country’s citizens to look for other more reliable ways of storing value. But it seems that ordinary people aren’t the only ones who think this way, as proven by Sporting Portugal’s latest update.
One of the biggest teams in Portugal and a name every European football fan remembers, Sporting Portugal has been a bit strapped for cash lately. The club has been in a rough financial patch for a while now, being forced to look for means of raising money to survive. Only recently, Sporting tried issuing €30 million in bonds with a quite lucrative annual interest rate of 5.25%, just so it can gather funds to pay off a previous bond. However, banks have refused to sell the latest bond issue, leaving the club in a tight spot.
As an alternative solution, Sporting’s management is reportedly looking into launching an ICO (Initial Coin Offering) to help them raise the money to stay afloat. As commented by VP of Sporting Portugal, Francisco Salgado Zenha, the club is “looking closely at an ICO” as it believes it will help them “take advantage of this new world” and raise money for the team.
As with all ICO campaigns, Sporting’s campaign would involve the sale of tokens which could be later used to buy services or products, although no official information is given of what investors will receive as compensation. However, if the campaign fails, management has revealed that they may need to make new decisions that could lead them to sell some of their top players.
Not the First Team
As unusual as it may be, Sporting Portugal isn’t the first team to mull over the idea of an ICO campaign to raise funds. Two months ago, the Brazilian club Avai FC launched its own ICO, selling Avai tokens for various investor incentives.
Moreover, ICOs aren’t the only ways football clubs are getting funded by cryptocurrencies. In August 2018, the Italian club Rimini FC 1912 sold a 25% of its share to cryptocurrency magnate Pablo Victor Dana, which was paid for by Dana’s own cryptocurrency Quantacoin. That same month also brought us the news of a partnership between eToro and 7 Premier League teams, including Tottenham Hotspur and Crystal Palace, which allowed the premier clubs to receive sponsorships in Bitcoin.