Football clubs of the English Premier League “Newcastle United” and “Cardiff city”, with financial difficulties, plan to issue its own cryptocurrency to raise funds.
According to The Times, both teams are in talks with sporting decentralized investment and crowdfunding platform SportyCo on the organization of the first round ICO. It is assumed that the issued tokens fans and investors can buy to participate in the future revenues of the clubs or obtain additional benefits from the club’s services.
Earlier on cooperation with SportCo to conduct ICO has announced the club’s Brazilian Serie B Avai. The team hopes to raise through the sale of tokens for about $20 million, which should help the club from the city of florianópolis to improve the infrastructure, come in A series and to win the right to participate in the Copa Libertadores — the South African equivalent of the UEFA Champions League.
“Newcastle United and Cardiff city” financial plans for the ICO not announced, but recognize that the funds they need for the budget to survive in the Premier League. Both teams after five rounds of the Premier League are in the relegation zone, not having won a single victory.
“Cardiff city” the debt burden is more than $150 million, most of which club needs the Malaysian investor. Compared to last year, the club was forced to reduce payroll costs by 18% to $27 million, “Newcastle United” facing a shortage of funds, believed to be because of improper financial management.
According to experts in the football industry there are common problems that interfere with the clubs to properly manage finances. This can be attributed to the inflated salaries paid to players and compensation to their agents, which increases costs. Many clubs know that the only dependence on the owner-investor can become a problem in the future, and seek to raise money through the public sale — ICO greatly simplifies this process.
“The money received from the public sale, go directly to the club infrastructure, which will remain with the club forever. With an initial range of coins, we are opening a new Chapter in the football and sports industry in General,” said co-founder SportyCo Sirloin Marko (Marko Filej).
We will remind that earlier “Newcastle United” and “Cardiff city” among the seven of clubs in the Premier League signed a sponsorship agreement with the online platform of eToro, which payments will be made in bitcoin.