British Premier League football clubs Newcastle United and Cardiff City plan to conduct ICOs. Currently the clubs are in talks with SportCo, a decentralized sporting investment and funding platform on token sales that are aimed to help them to cope with financial problems.
The partnership allows the clubs to start selling of their private digitized tokens as securities/utilities. The token holders would either receive additional benefits for using the token on game-related purchases or gain a particular stake in the clubs’ revenue.
SportCo has earlier partnered with Avaí Futebol Clube to raise them about $20 million via a public sale of AVAI tokens.
“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,” Marko Filej, SportyCo’s co-founder, said.
Both Newcastle United and Cardiff City are in the poor financial health. Whilst Newcastle United has lost profits due to bad managerial decisions of the club owner Mike Ashley, Cardiff City is facing a debt burden of over $150 million. The two clubs have admitted that they are fighting for survival with lower budgets.
As a reminder, last week, Paris Saint-Germain (PSG), a major French soccer team, shared plans to issue its own cryptocurrency as a way to incentivize participation from its fans all over the world. It is planned that the PSG starts issuing its proprietary tokens the next year spring, becoming potentially one of the first soccer clubs worldwide.