Football turns to blockchain for new tech boost
Manchester United goalkeeper David De Gea would be a Real Madrid player now if football had embraced blockchain technology, a move that now seems inevitable in the next two seasons.
De Gea’s switch from Old Trafford to the Santiago Bernabéu Stadium famously fell through in 2015 because the paperwork was not submitted in time for the transfer to be completed.
However, the collapse of deadline day deals in such circumstances should soon become a thing of the past, according to British experts who are in talks with a number of English Premier League Clubs on the benefits of blockchain technology.
Omar Jackson, Director of Cryptech World, which has offices in London and Dubai said: “There are major gains to be made with regard to sponsorships and the way clubs interact with all their business partners. The buying and selling of players becomes faster, more efficient and more cost-effective if all the information needed to complete transfers is kept on a blockchain.
“This will be particularly important on deadline day to make sure last minute deals go through. It will also bring more transparency by recording payment of player and agent fees to show what percentages of transfer fees goes where.”
“From the 2020-2021 season we could start seeing a lot more blockchain involvement in football, leading to players being bought and sold through cryptocurrencies and even being paid in crypto.”
Jackson revealed today that Cryptech World has been approached in recent weeks directly and indirectly by more than ten football clubs, most of them from the Premier League, as well as the English Football League Championship, La Liga in Spain and Serie A from Italy.
While discussions are at an early stage, the company says the foundations are being laid for revolutionary changes to the way top football clubs do business.
Jackson says that while football is taking the lead in embracing blockchain technology, its impact on the global sports industry will be magnified by developments across a wide range of team and individual sports such as cricket, Formula One, rugby, tennis, golf and boxing.
He continued: “Football is a business, profit is vitally important to the clubs, and blockchain can help them cut costs massively, making many processes more efficient, saving time and money. We are welcoming these conversations and the clubs we’re talking to are all interested in learning more about how blockchain can benefit their business; there are many ways for this to happen.”
Cryptech World says blockchain will help football clubs eliminate the traditional problem of forged match day tickets, tackle the issue of touts snapping up blocks of tickets to sell at inflated prices and, perhaps most importantly, help bring down the cost of football and supporting football clubs to the man on the street.
Jackson said: “The recent move by France’s Paris Saint-Germain to partner with blockchain platform Socios.com highlights how clubs can use their own cryptocurrencies to build a stronger bond with fans. All team sports, especially cricket, can benefit enormously from blockchain. F1 will be a huge arena to implement the technology too.”
PSG are launching a Fan Token Offering (FTO) giving supporters access to branded club tokens. These make it easier to buy club merchandise and tickets, and also give fans voting rights on matters such as player-of-the-month awards and stadium music.
Cryptech invests in ideas and start-ups utilising blockchain and actively trades the top four cryptocurrencies in the world; Bitcoin, Ethereum, Ripple and Litecoin. The company recently signed a sponsorship agreement with Britain’s former world boxing champion Amir Khan.