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Real-World Asset DeFi Moves Into Sports Finance With Tokenized Football Club Revenues
Yahoo Finance· 2025-12-15 13:51
Core Insights - A new decentralized finance model (DeFi) aims to address liquidity gaps faced by soccer clubs due to uneven cash flows from media and commercial contracts [1] - The Decentral protocol, built on the Chiliz blockchain, allows clubs to tokenize future receivables, such as broadcasting rights, to raise stablecoin liquidity [1] Group 1: Decentral Protocol Mechanics - Investors can supply capital to decentralized pools, enabling clubs to access funding more quickly without relying on banks or specialized funds that impose high fees [2] - Decentral will initiate a liquidity pool of $1 million in USDC stablecoin, featuring a 90-day lock-up period and an expected 12% annual percentage yield (APY) [2] - Payments from sponsors or broadcasters are directed into Decentral's smart contract, allowing liquidity providers to withdraw their principal and accrued returns [3] Group 2: Addressing Sports Finance Challenges - The model addresses a significant issue in sports finance, where clubs often have valuable long-term contracts but struggle with daily funding needs, especially outside elite clubs [4] - By converting future revenues into real-world assets (RWAs) on-chain, the model could facilitate quicker settlements, enhanced transparency, and broader access to capital [4] Group 3: Tokenization and Industry Impact - Tokenization of RWAs involves representing traditional financial assets as digital tokens that can be traded on blockchains [5] - The development signifies a shift in "SportFi" from concept to practical utility, utilizing blockchain infrastructure to finance the sports economy [5] - Chiliz is a leading project in SportFi, connecting traditional sports business models with blockchain technology, with fan tokens being a prevalent use case [6]