Tottenham Hotspur has announced that it will be the latest Premier League team to embrace blockchain technology by issuing its own Web3 fan token. The club will partner with Socios.com, a fan engagement platform built on the Chiliz blockchain that has already attracted over 80 major sporting teams from various disciplines.
By issuing the fan token, Spurs aim to enhance supporter engagement and provide rewards for fans. Socios.com allows teams to manage and issue fan tokens, digital collectibles, and real-world rewards, while users can also participate in decentralized autonomous organization (DAO)-like decisions related to their favorite teams.
Tottenham Hotspur joins other prominent football clubs such as Manchester City, Arsenal, Barcelona, Paris Saint-Germain, and Juventus in utilizing blockchain technology to revolutionize supporter engagement. The fan token launch will enable $SPURS token holders to participate in on-chain voting on various team dynamics, including potential kit changes. Additionally, Spurs will collaborate with MatchWornShit, a platform that facilitates auctions of jerseys worn by players during games and authenticates them on the Chiliz blockchain.
According to Ryan Norys, Tottenham’s commercial sales director, the fan token will augment the club’s existing membership scheme by offering a “new range of club-related rewards and experiences.” The partnership between Spurs and Socios has been in the works since 2022, with plans to integrate the fan token into the club’s loyalty program and mobile app in the future.
The $SPURS tokens are scheduled to be launched on October 4 and will be listed on cryptocurrency exchanges that support Chiliz tokens. In the United Kingdom, Socios users can expect to see disclaimers on fan token offerings starting from October 8, as the Financial Conduct Authority (FCA) will regulate the marketing of cryptoasset promotions, imposing stricter rules and warning potential investors of the risks associated with cryptocurrencies and fan tokens.
Fan tokens have proven to be a lucrative revenue stream for sports teams, as they leverage digital technologies to enhance user engagement. Since 2018, Chiliz estimates that its blockchain platform has facilitated over $400 million in revenue for teams and leagues.
Chiliz initially operated as an ERC-20 token ecosystem but made the transition to its own layer-1 blockchain, which is a fork of the BNB Chain, in May 2023. This shift offers shorter block times, reduced fees, and lower energy consumption through a proof-of-stake authority (PoSA) consensus mechanism. Furthermore, the blockchain remains compatible with Ethereum development tools.
In addition to football clubs, other sporting organizations are also embracing blockchain technology to drive fan engagement. The International Cricket Council (ICC) plans to leverage blockchain during the upcoming 2023 Cricket World Cup in India. The NEAR Foundation’s blockchain operating system will serve as the backbone for a Web3 fan engagement app throughout the six-week global competition.
Overall, the integration of blockchain technology in the sports industry continues to gain momentum, allowing teams and organizations to enhance fan experiences, create new revenue streams, and tap into the decentralized nature of blockchain for decision-making.
