Premier League clubs Newcastle United and Cardiff City are reportedly set to launch their own cryptocurrencies in a bid to raise additional funds amid the on-field struggles and help them strengthen their position in players transfer market.
According to the London daily The Times, the two top-flight English football clubs are in talks with SportyCo, a micro-financing and crowdfunding company, over launching an Initial Coin Offering (ICO), giving fans and investors the opportunity to buy the new currency in the form of tokens with the intention of securing a future return.
Both Newcastle and Cardiff have already made initial moves into the crypto space through their partnerships with investment platform eToro, which last month signed deals with seven Premier League clubs.
The move will help the two clubs to raise valuable riches ahead of the January transfer window to ensure their survival as they are currently languishing in the bottom rungs of the Premier League table. Both sides are yet to win a game this season, with Newcastle sitting in 19th place while Cardiff are 17th.
The news comes close on the heels of French top-flight club Paris Saint-Germain (PSG) that signed a multi-year deal with Socios.com to launch their own cryptocurrency via Fan Token Offering (FTO) for club’s supporters. The blockchain platform will also serve as the official cryptocurrency partner of the Ligue 1 champions.
In the recent times, a number of football clubs, sports teams and international sports celebrities have joined the global cryptocurrencies boom to cash in on benefits ranging from fan engagement, expanding merchandise business to raising extra cash.
Avaí, a second-tier Brazilian outfit recently announced that it will raise US$20 million through token sales after they became the first soccer club to launch their own cryptocurrency in a deal with SportyCo and sports investment firm Blackbridge.