Hello. In this post we will tell you about some of the ways blockchain can improve funding for teams, athletes, and stadiums.

Athlete Crowdfunding

Blockchain tokens enable a secure, efficient method for global fandoms to contribute to crowdfunded sponsorships. This enables fans to invest in lesser known athletes who aren’t initially drafted or highly recruited. Imagine being able to invest in a player that is attempting to enter the NBA, NFL or MLB and that player goes on to achieve success from salary and sponsorships. In return for the initial funding, successful athletes could pay fans interest on their investments, potentially in the form of a dividend or income service agreement.

Fractionalized, Fan Ownership of Teams

One of the most exciting potentials for tokenization involves fractionalizing a major or minor league sports team. Tokenization presents an opportunity to further incentivize fan ownership and create new business models. Fans would also be enticed by non-monetary benefits to fractional team ownership, such as governance rights, facetime with owners and players, or access to special events for fan owners.

Building a New Stadium and Tokenized Permanent Seat Licenses

Beyond fractionalized team ownership, fans could help fund new sports arenas or other facilities and in return receive compensation as a percentage of ticket sales for perpetuity or a set period of time. Sports organizations have previously explored alternative funding mechanisms to construct new stadiums and arenas in the form of permanent seat licenses (PSLs) and stadium seat licenses (SSL).

Sponsorships & Vendors

Vendor sponsorship agreements are complex and involve several disparate parties, each with individual interests and large scope of contract terms — including non-compete, financials, and renewal rights (to just name a few). Smart contracts represent an opportunity for process simplification and automation: payments, verifying e-signatures, and securely tracking provisions of partnership agreements, such as renewals or contract terminations. This is game-changing for sponsors and vendors.