Blockchain-based fan tokens have already provided a strong revenue stream for European soccer clubs, and now the company behind the trend is coming to the U.S.
Chiliz, which sells fan tokens through its Socios.com app, is investing $50 million to bring its unique sports team fan access system to the States, according to Reuters.
Chiliz partners with teams to release blockchain-backed tokens that fans can purchase.
The tokens unlock access to special offers and voting rights on decisions the team puts before the fans, such as who plays in a friendly game or which player should take over the team’s Instagram for a day. The more tokens a fan has, the greater the weight of their vote, and tokens can be bought and sold freely.
- At least 23 sporting organizations issue tokens through Socios.com, including FC Barcelona, Juventus, and Paris Saint-Germain.
- AC Milan’s fan tokens brought in $6 million in revenue after being listed on the cryptocurrency exchange Binance. Other fan tokens, including those for Juventus and Paris Saint-Germain are also listed on the exchange.
- The company distributed over $30 million to teams in 2020, according to CEO Alexandre Dreyfus, with plans to at least double that number this year.
Chiliz is seeking new partnerships with teams in all major U.S. sports leagues, NASCAR, and esports.
With the pandemic eating into profits and even forcing some leagues to operate at a loss, Chiliz is hoping this novel concept is arriving at just the right time.