Newcastle crypto move could boost January transfer funds
Newcastle United are one of two Premier League teams reportedly in talks about launching a cryptocurrency to raise funds for the January transfer window.
According to The Times, the Toon and fellow strugglers Cardiff City are in discussions with decentralised sports funding platform SportyCo and investment company Blackbridge about launching Initial Coin Offerings.
An ICO would see fans encouraged to buy tokens entitling them to either a stake in future club revenue or tickets and merchandise.
The theory is that the blockchain-based funding model makes the running of the club more democratic, with fans gaining more of a voice in how money is used.
“Money raised from the crowd sale goes straight into club infrastructure which will stay with the club forever,” said SportyCo co-founder Marko Filej after the firm announced its first ICO with Brazilian Serie B team Avai recently.
“With this initial money offer, we are opening a new chapter in football and the sports industry in general.”
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The company is also a shirt sponsor of Barcelona-based Liga club Espanyol while French giants Paris Saint-Germain are plotting a similar move into crypto.
It is reported that Newcastle and Cardiff, who drew 0-0 last month and are 19th and 17th in the 20-team table respectively, would seek to raise £15 million with their respective ICOs.
Both clubs have admitted that they are battling to stay in the top flight with relatively low transfer funds available.
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