Football Industry Embraces Crypto as Messi Helps 'Fan Tokens' Take Off

Lionel Messi has brought more publicity. (AP Photo)
Lionel Messi has brought more publicity. (AP Photo)
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Football Industry Embraces Crypto as Messi Helps 'Fan Tokens' Take Off

Lionel Messi has brought more publicity. (AP Photo)
Lionel Messi has brought more publicity. (AP Photo)

When Paris Saint-Germain signed Lionel Messi, the salary package included something previously unheard of for a player -- a one-off payment, understood to be worth around one million euros ($1.15m), made in PSG 'fan tokens'.

It was the result of a partnership signed by the French giants in 2018 with Socios.com which sees fans use a cryptocurrency called 'chiliz' to buy tokens allowing them to vote on issues related to the club.

These issues have tended to be rather mundane, for example Juventus asking what music they should play in their stadium, but the concept has caught on.

The company has grown quickly since signing its first partnerships with PSG and Juventus to being involved with 56 football clubs and around 100 sports teams worldwide, says CEO Alexandre Dreyfus.

Messi has brought more publicity, and Dreyfus believes the Argentinian will "set a trend".

"This is more a top-up that is never going to replace any compensation. It is more like a bonus, but it is a bonus that at some point players will start to ask for," Dreyfus tells AFP from his office in Malta.

"We hope that in two years, during the 'mercato' (transfer window), a player will say: 'Yes I am going to that team but they had better give me a million dollars of fan tokens'."

Dreyfus admits the pandemic and resulting economic crisis has benefited his company, allowing them to multiply their partnerships.

"The fact is that clubs suddenly lost 50 or 70 or 80 percent of their revenue, and they realized: 'Hey, we have fans all over the world, what can we sell them?'"

They now have shirt sponsorship deals with Inter Milan and Valencia, promoting their fan tokens.

- Sponsorship bonanza -
New analysis by KPMG Football Benchmark shows that over 40 shirt sponsorship deals have been signed in Europe's five biggest leagues since the pandemic's onset.

It says Inter doubled income by switching from Pirelli to Socios.com and a deal worth $23.57 million.

There is a mini-revolution happening as businesses related to cryptocurrency have started appearing on shirts.

In July, Roma announced a three-year deal worth $14 million annually that sees their shirts carry the name of DigitalBits, "an easy-to-use open-source blockchain used to power consumer digital assets".

"Not only can fans witness history, but they can now own part of it," boasted Roma. "Get ready to trade and collect. Join us as we step into the future of football."

The emergence of crypto-related businesses in football comes as countries are introducing regulation to clamp down on gambling sponsorship -– a ban is in place in Spain, for example, while the UK government is considering one.

"The door is ajar for new companies to stick their foot in," say KPMG.

"Something has to fill the void and fan tokens, or something which is not defined as gambling but is gambling, are likely to be the big ticket in town," Kieran Maguire, a lecturer in football finance at Liverpool University, tells AFP.

- Concerns -
There are concerns about curious punters being drawn into using crypto-related products without having a proper understanding.

To highlight their volatility, the value of 'chiliz' -- a less well-known cryptocurrency than, say, Bitcoin -- shot up 58 percent in the four weeks after Messi's arrival.

"Ultimately these are speculative products. Someone described them to me as gambling with a small G," says Maguire.

Meanwhile, some supporter groups have criticized their clubs for embracing fan tokens.

Aston Villa Supporters Trust told Joe.co.uk their club's agreement with Socios.com was "wholly inappropriate" and questioned why fan engagement should be monetised.

Maguire says: "The clubs are targeting the 'non-legacy fans' and asking: 'Can we make some money out of these new fans?'

"If we take Manchester United, they claim to have 1.1 billion fans and in a normal year they will make around 600 million pounds ($805m) in revenue. So that works out as about 55 pence per fan per year. That's pretty bad."

For the clubs, this is where Dreyfus -- a founder of French online gambling and poker company Winamax -- comes in.

"We are talking about two different generations that are not fighting against each other, they just don't see the same things," he insists.

"I always joke saying we are not targeting a guy who has a tattoo and lives next to the stadium.

"Our market is really more about the digital fans, casual fans all over the world that consume sports differently to you and me historically."



Rafael Nadal Retired after the Davis Cup. It's a Rare Team Event in Tennis

Spain's Carlos Alcaraz, left, shakes hands with Rafael Nadal during a training session at the Martin Carpena Sports Hall, in Malaga, southern Spain, on Sunday, Nov. 17, 2024. (AP Photo/Manu Fernandez)
Spain's Carlos Alcaraz, left, shakes hands with Rafael Nadal during a training session at the Martin Carpena Sports Hall, in Malaga, southern Spain, on Sunday, Nov. 17, 2024. (AP Photo/Manu Fernandez)
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Rafael Nadal Retired after the Davis Cup. It's a Rare Team Event in Tennis

Spain's Carlos Alcaraz, left, shakes hands with Rafael Nadal during a training session at the Martin Carpena Sports Hall, in Malaga, southern Spain, on Sunday, Nov. 17, 2024. (AP Photo/Manu Fernandez)
Spain's Carlos Alcaraz, left, shakes hands with Rafael Nadal during a training session at the Martin Carpena Sports Hall, in Malaga, southern Spain, on Sunday, Nov. 17, 2024. (AP Photo/Manu Fernandez)

Rafael Nadal wanted to play his last match before retiring in Spain, representing Spain and wearing the red uniform used by Spain's Davis Cup squad.

“The feeling to play for your country, the feeling to play for your teammates ... when you win, everybody wins; when you lose, everybody loses, no?” Nadal, a 22-time Grand Slam champion, said a day before his career ended when his nation was eliminated by the Netherlands at the annual competition. ”To share the good and bad moments is something different than (we have on a) daily basis (in) ... a very individual sport."

The men's Davis Cup, which concludes Sunday in this seaside city in southern Spain, and the women's Billie Jean King Cup, which wrapped up Wednesday with Italy as its champion, give tennis players a rare taste of what professional athletes in soccer, football, basketball, baseball, hockey and more are so used to, The AP reported.

Sharing a common goal, seeking and offering support, celebrating — or commiserating — as a group.

“We don’t get to represent our country a lot, and when we do, we want to make them proud at that moment,” said Alexei Popyrin, a member of the Australian roster that will go up against No. 1-ranked Jannik Sinner and defending champion Italy in the semifinals Saturday after getting past the United States on Thursday. “For us, it’s a really big deal. Growing up, it was something that was instilled in us. We would watch Davis Cup all the time on the TV at home, and we would just dream of playing for it. For us, it’s one of the priorities.”

Some players say they feel an on-court boost in team competitions, more of which have been popping up in recent years, including the Laver Cup, the United Cup and the ATP Cup.

“You're not just playing for yourself,” said 2021 US Open champion Emma Raducanu, part of Britain's BJK Cup team in Malaga. “You’re playing for everyone.”

There are benefits to being part of a team, of course, such as the off-court camaraderie: Two-time major finalist Jasmine Paolini said Italy's players engaged in serious games of UNO after dinner throughout the Billie Jean King Cup.

There also can be an obvious shared joy, as seen in the big smiles and warm hug shared by Sinner and Matteo Berrettini when they finished off a doubles victory together to complete a comeback win against Argentina on Thursday.

“Maybe because we’re tired of playing by ourselves — just for ourselves — and when we have these chances, it’s always nice,” Berrettini said.

On a purely practical level, this format gives someone a chance to remain in an event after losing a match, something that is rare in the usual sort of win-and-advance, lose-and-go-home tournament.

So even though Wimbledon semifinalist Lorenzo Musetti came up short against Francisco Cerúndolo in Italy's opener against Argentina, he could cheer as Sinner went 2-0 to overturn the deficit by winning the day's second singles match and pairing with Berrettini to keep their country in the draw.

“The last part of the year is always very tough,” Sinner said. “It's nice to have teammates to push you through.”

The flip side?

There can be an extra sense of pressure to not let down the players wearing your uniform — or the country whose anthem is played at the start of each session, unlike in tournaments year-round.

Also, it can be difficult to be sitting courtside and pulling for your nation without being able to alter the outcome.

“It’s definitely nerve-racking. ... I fully just bit all my fingernails off during the match," US Open runner-up Taylor Fritz said about what it was like to watch teammate Ben Shelton lose in a 16-14 third-set tiebreaker against Australia before getting on court himself. "I get way more nervous watching team events, and my friends play, than (when it’s) me, myself, playing.”