Announced last Friday, Flamengo’s partnership to sell fan tokens will yield a guaranteed minimum value of 13.5 million dollars (approximately R$ 70 million at the current price) for the club. The contractual bases with “Socios.com”, the company responsible for the cryptocurrency platform, were agreed, but the agreement still needs to be approved by the Deliberative Council.
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Flamengo Flag in the Vulture’s Nest — Photo: Alexandre Vidal / Flamengo
The contract will be valid until the end of 2025. In case of approval, Flamengo will receive 1.5 million dollars (R$7.9 million), an amount equivalent to the year 2021. From then on, the minimum guaranteed income becomes $3 million (R$15.8 million) for each year of the contract.
This, however, will not be the only source of revenue for Flamengo in the agreement. The club will also be entitled to 50% of the value obtained from the sale of tokens. The ge found that the quantity of tokens and their price tend to follow a pattern in all “Socios.com” deals.
For comparison, Atlético-MG and Corinthians, which have already signed a partnership with the company, initially sold a total of 850,000 fan tokens at 2 dollars (about R$10) each. From the R$ 9 million revenue, Atlético, for example, got 50% of the value: R$ 4.5 million. There are, however, European clubs that issued 1 million fan tokens in the first batch.
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Finally, Flamengo will also be entitled to an extra amount if the revenue exceeds a certain amount.
In return, “Socios.com” will be entitled to brand exposure on the professional men’s soccer team’s training shirt and on the women’s team and youth team’s Game Cloak, as well as a media package on FlaTV and the networks Flamengo’s social media, in the properties of birthday posts and professional men’s squad.
Understand what fan tokens are
Fan Tokens are cryptocurrencies that allow fans to participate in club experiences through the partner app, “Socios.com”. According to the announcement by Flamengo, whoever buys the tokens will be able, for example, to vote on details of the team’s uniform or on the music that will play in the pre-game warm-up, participate in experiences and have access to exclusive services, among other activations.
The tokens are already sold in several clubs around the world by “Socios.com”, such as Paris Saint-Germain, Barcelona, Manchester City, Juventus, Inter Milan, Milan and Arsenal. PSG even paid part of the gloves in hiring Lionel Messi with fan tokens.
— Photo: Disclosure