To be a football fan is one thing. But what about the stocks of your favorite club? Apparently, blockchain can make these dreams come true.
Today’s case has already been mentioned in the last Weekly update – but that’s quite interesting for a separate article. After all, not every day we can witness the situation where an institution unrelated to the blockchain industry is bought by a cryptocurrency based entity.
Our story begins with Perth Glory, an Australian football team. As we learned last week, it will be acquired by the London Football Exchange Group (LFE). The company is called a football club exchange and is strictly related to the cryptocurrency industry. LFE rose to prominence with ICO 2018 when it raised $ 70 million, which allowed it to launch its own token, LFEC, based on the Stellar blockchain.
Perth Glory plays in the Australian A-League, the country’s top professional football league. As you can see, this is not about a fringe sports club, but about the actor established on a global scale. This makes the latest disclosures an important issue for both the cryptocurrency industry and the sports world.
The club’s owner, well-known Australian businessman Tony Sage, recently confirmed the sale of 80 percent of the club to the LFE. Both sides are just waiting for confirmation from Football Federation Australia, the country’s main sport governing body. According to LFE, there will be no change in the club’s management structure, nor in operations or functionality.
But what exactly is the London Football Exchange, and why is it acquiring an Australian football club? According to the company’s website, LFE aims to use the blockchain for the benefit of football clubs and their fans. As for the former, the platform is intended as a form of alternative financing for clubs, allowing clubs to raise new capital directly from people interested in such an investment.
On the fan side, LFE will create a tokenized marketplace, offering various products related to their favorite clubs. The wide range of services started with ticket sales and merchandising, but the platform will also include football hosting, streaming and retail services. On top of that, the most dedicated fans will of course be able to invest in particular clubs.
All these functions will be supported by the LFEC token. And the business isn’t going to stop at one club – the idea of LFE involves raising money to buy more football teams. Thus, sports enthusiasts will hold shares in their favorite clubs by buying LFEC. At least in theory.
While the case is still new and we cannot know what the relationship between LFE and Perth Glory will look like in practice, the very idea of fans buying shares in companies is intriguing. In theory, he will use the blockchain to have a more significant influence on their favorite entities. But on the other hand, how will such a process differ from holding traditional stocks on the stock exchange?
The only hope remains in blockchain technology, which could eventually give these players tools of influence – for example, via voting systems. But that still leaves us with a problem: Owners who have acquired a greater number of tokens are likely to have a greater influence.
However, details of how Perth Glory will work are still unknown. And since Tone Sage assures that LFE will not influence the management of the club, then maybe owning chips will actually have no special meaning other than contributing to the favorite club. However, the idea of the community buying an entity and autonomy this via blockchain is always very interesting.
According to Tony Sage, LFE is currently to negotiate with other football clubs over a similar deal, and he believes the community-driven blockchain market will own up to seven football teams over the next two years. The businessman himself firmly believes in the success of this cooperation. And he surely has a flair for various investments, since he made a fortune in mining (physical, not blockchain).
Still, not everyone is as enthusiastic about the deal as Sage. Outside of the blockchain industry, information about the acquisition by a cryptocurrency-related company is still a fairly new thing. Many sports fans might be skeptical of such a situation rather than being satisfied with the possibility of closer integration between a sports club and its supporters. But on the other hand, if the funds to buy Perth Glory do come from their supporters, then everyone should be happy with the result.
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