Soccer-Benfica to join crypto craze with Socios

Sport Lisboa e Benfica Futebol SAD

07/06/2022 09:26

By Fernando Kallas
    LISBON, June 7 (Reuters) - Portugal's biggest soccer club,
Benfica, will become the country's first to join the crypto
craze, partnering with blockchain-powered fan engagement firm
Socios.com to launch a fan token, the club announced on Tuesday.
    "We have been paying very close attention to Digital
Assets," SL Benfica CEO Domingos Soares de Oliveira said in a 
statement issued by Socios.com.
    "It's a market which has been influential in our industry of
late. Benfica is constantly focused on searching for and
delivering a positive experience to our fanbase. We are
delighted to be partnering with Socios".
    Fan tokens are a type of cryptocurrency that allow holders
to vote on mostly minor decisions related to their clubs.
    They are increasingly seen by clubs as a source of new
revenue. Socios.com, which provides such tokens for Manchester
City, Barcelona, Paris St Germain and other top clubs, says they
generated nearly $200 million for its partner clubs in 2021.
    Like bitcoin and other digital currencies, fan tokens can be
traded on exchanges. They also share with other cryptocurrencies
a tendency for wild price swings.
    Some regulators have issued warnings to investors about
digital assets.
    Still, several high-profile business and entertainment
figures have backed crypto assets, with Tesla boss Elon Musk,
Twitter founder Jack Dorsey and rapper Jay-Z among those to have
shown support for bitcoin.
    Soccer star Lionel Messi signed an agreement worth more than
$20 million in March to promote Socios.com after the two-year
contract he signed with PSG in August 2021 included some of the
French club's cryptocurrency fan tokens in a "welcome package".
    The Argentinian became only the latest global sports
personality to enter the crypto world, following NFL quarterback
Tom Brady and NBA star LeBron James. Messi's deal was part of a
growing wave of tie-ups between crypto firms and soccer.
    Benfica presented their worst financial results of the past
11 years for the 2020-21 season, with losses of 17.4 million
euros due to the impact of the COVID-19 pandemic.
    Not even the return of fans to the stadiums has balanced the
numbers. In March, the club announced losses of 31.7 million
euros in the first half of the 2021-22 season.
    In July 2021, Benfica President Luis Filipe Vieira was
detained as part of an investigation into alleged tax fraud and
money laundering. Benfica SAD shares dropped after the news.

 (Reporting by Fernando Kallas; Editing by Bradley Perrett)
 ((Fernando.Kallas@thomsonreuters.com;))