News hardware A French cryptocurrency company to the rescue of FC Barcelona
If you follow any football news, you know that the iconic FC Barcelona club has been facing financial difficulties for some time. To recover their debts, the Spanish football team specifically turned to a cryptocurrency company specializing in sports.
Cryptocurrency platform Socios de Chiliz buys shares of FC Barcelona
The news was announced yesterday: Socios, a crypto platform specializing in sports, has bought a significant stake in the shares of “Barça Studios”. Start-up platform Chiliz invested € 100 million to own 24.5% of the digital creation arm of the FC Barcelona club. The subsidiary “Barça Studios” deals with the digital influence of the club through audiovisual productions, among others.
We have reached an agreement for the sale of 25% of Barça Studios for 100 million euros. We have the authorization to the meeting … to sell 49% of the shares and so far we have sold 25% to Socios.com. “. explains Joan Laporta, president of FC Barcelona.
Over a billion euros in debt, the Spanish club confirms that the strategy is to find liquidity at all costs, and in all sectors, including web3.
The FC Barcelona club in trouble
To keep its players’ exorbitant paychecks, the club has no choice but to run for funding. Thus, FC Barcelona has already sold 10% and 15% (about 400 million euros) of its La Liga television rights to an American investment fund: Sixth Street.
If this agreement is only valid for the next 25 years, the one with Socios is truly definitive. Therefore, in the digital part, FC Barcelona will now have to compose in the interest of the French start-up Chiliz. However, coexistence within the capital Barcelona should be fine as it is not the first time the two have worked together.
Socios de Chiliz, the start-up made in France that combines cryptocurrencies and sports
Founded by French Alexandre Dreyfus, co-founder of Winamax, Chiliz is a company that wants to develop blockchain technology and cryptocurrencies in the world of sports. Through its Socios platform, Chiliz was the first company to develop an engagement and monetization experience for football fans using cryptocurrency.
To do this, the Socios app allows a multitude of football clubs such as PSG or Manchester City to sell tokens called “fan tokens”. FC Barcelona is obviously part of it as Socios has been offering a token for fans of the club called BAR for more than 2 years.
Concretely, these cryptocurrencies offer privileges to fans, in particular on their ability to interact directly with their club on the various decision-making processes.
Some ballots concern:
- Bus color
- The design of the third jersey
- Challenge the players during training
- Choose the warm up music playlist
By winning or buying the Chiliz (CHZ) cryptocurrency, you can choose to buy your club’s fan token, to become a real “small shareholder” of your favorite football team.
However, it is important to clarify that these token clubs have clearly demonstrated outsized volatility. For example, the FC Barcelona fan token went from € 60 to € 5 with the recent cryptocurrency crash …
This share purchase initiative from one of the largest European clubs clearly shows Chiliz’s ambitions to establish itself firmly in the sports sector. With this acquisition, the cryptocurrency firm offers itself a far-reaching purpose to democratize its Socios platform among fans.