by Nuno Menezes
The sports industry is one of the industries where cryptocurrency can bring great changes and innovations. The application of the technology to football seems to be slowly picking up its pace. Recently, Columbian famous football player James Rodriguez was the first to launch his own cryptocurrency, as reported by Wired Magazine.
With this move, James may well have started what can be the beginning of a cryptocurrency football economy that presents itself as a way of completely disrupting the football industry.
A New Football Economy
With his coin, James Rodriguez is trying to open up a new circuit for his fans to interact with him as well as giving himself the chance of capitalizing on his performance while a player. Cryptocurrency allows him to do this independently from the traditional earning model in the industry, and by doing so, he is introducing a whole new earning model for football players. By using a decentralized model, in the future players might be paid directly by his fans and under the influence of his performance.
Amazingly enough, SelfSell, the Chinese company developing the token for James Rodriguez, reported the advance online auction of a small batch of crypto-tokens raked in $500,000 was sold in just 12 seconds.
Apart from giving birth to a new payroll model for players, cryptocurrencies can also be used to create a specific Market where player’s coins can be traded by investors and speculators giving rise to a whole new economy in the sports industry.
This would attract many newcomers that don’t any interest in football. Player tokens would have an important role in the performance of a player and vice-versa.
While a poor performance of a player in a specific game would motivate a negative effect on the price of his coin, an exceptional performance could well have the contrary effect and take the price of the player token to new levels which would directly benefit the player.
Cryptocurrency has already reached mainstream attention, and now even celebrities are looking forward to take their chances with cryptos.
Coins As An Incentive
Coins could be used as an incentive system. Fans would most definitely buy the footballer coins as they would believe that their favorite player would have great performances, while many would see it as an opportunity to speculate. Most of these coins would initially be very cheap, but speculation would take the prices to higher levels much like what we see in the current cryptocurrency market today.
While there is a lot of space to transform the football economy, as well as it can be underpinned to cryptocurrency which would bring benefits for both the industries, it would also introduce a new class of sports asset brokerage that would compete with the current sports betting industry.
Engaging Sports Sponsorships
Cryptocurrency is also getting into the football economy by utilizing sponsorships. According to Sportsmedia, CoinDeal, a global cryptocurrency exchange platform has just signed a deal to sponsor Prémier League’s Top-flight English soccer side Wolverhampton Wanderers.
Laurie Dalrymple the team’s managing director stressed:
”CoinDeal is a bold and progressive company, who we believe to be an ideal match to become one of our principal partners, and we look forward to working with them throughout our first season back in the Premier League.”
With this move, CoinDeal will see its logo appear on the left sleeve of the team’s playing shirts during the 2018/19 season. It will also have exposure to all first-team training kit. The agreement allows for the company’s branding be visible on LED advertising boards and the first team dugout at the club’s Molineux home ground.