A Portuguese football team, that’s apart of the Portuguese Premier League, announced it was planning to launch an Initial Coin Offering as an alternative method to fund the team.
Finding funding for a sports team is not easy and the team plans to use “alternative ways” in order to fundraise. Raising money through their own cryptocurrency was one of the options on the table.
The country’s financial markets regulator already advised the entities involved in the launch of ICOs to ask for legal clarification from the competent authorities before moving any further.
Francisco Salgado Zenha, the team’s Vice President told the press:
“We’re in meetings to discuss this topic. We are looking closely at an ICO. We believe there is a great potential for the Sporting brand if we go ahead with this option. But it is still an option and we have nothing concrete yet.“
Initially the team wanted to raise money through a traditional retail bond. The offering up to 30 million euros and paying a gross annual interest of 5.25%, however the team had struggled to sell the bonds.
The club blames banks for not helping in the negotiation. At the end of Thursday, November 22, the demand for the bond subscription stayed way below the minimum set by the team, around 1.5 million euros, below the 15 million euros required to launch the offer.
Sporting officials noted in a statement:
“The purchase orders collected today (November 19) correspond to 43.8% of the total orders collected so far.”
Because of this Sporting is looking into cryptocurrency as an alternative method to save them from this financial crisis.
This isn’t the first time we’ve seen sport teams raise money through ICOs. Many years back, two football teams did the same. As cryptocurrency and blockchain becomes more mainstream, we should be seeing more and more sports teams raise money for their teams through tokens.
I see tokens being a good use for purchasing tickets, merchandise, and in-game items.