Opinion by: przemysław Kral, CEO of Zondacrypto
The football transfer market has long been seen as a world of discrete backroom deals and negotiations. The transfer window brings a huge excitement to supporters who want to see how clubs are preparing for the season.
It is not always smooth sailing, which provides large capital requirements and tight deadlines that clubs face to complete deals. There is an option that can overcome these issues. The answer has been preceded in recent years, and the football industry is beginning to embrace it.
Football has become a great partner in the crypto industry, with a rapid increase in sponsor deals with football clubs that make up 43% of all crypto sports sponsorship last year, almost $ 213 million, According to Sportquake.
There is an opportunity for clubs to take these partners even by integrating blockchain technology into their financial systems to increase transparency and to democratize access to the transfer market.
Club clubs have already proven that blockchain works
This is not a completely foreign concept of moving football. In 2018, cryptocurrency was first used for a move when ömer Faruk Kiroğlu bought by Harunustaspor for a slightly paid Bitcoin fee. There have been many transfers since completed by major clubs around the world, including Inter de Madrid, São Paulo FC and Raków Częstochowa.
These transfers have completed all with reduced settlement hours and exceeds many cross-border payments that may stop transactions. The process becomes simpler in the development of better and regulated crypto-native payment metals.
Advantages not only apply to clubs-those in charge of bodies, including the UEFA, can also use regulated crypto payments to automatically release performance-based rewards should qualify clubs for the Champions League.
When it comes to chaotic markets
Player transfers require a wide amount of capital; Not only are initial fees and multi-million add-ons, but settlement and transaction fees for cross-border payments often mean that lower club clubs are struggling with access to the global market.
An early example is when São Paulo FC wants to buy Giuliano Galoppo from the Argentine side Banfield Athletic Club. However, the sale is on Problem Due to the chaotic Argentine FX market. It is necessary that Stablecoins, used by São Paulo FC to complete the move for a fee worth between $ 6 and $ 8 million to the USDC.
While the move is eventually subject to the regulation of Argentine exporting, leading to the advantage obtained by the use of crypto neglected, the example features the potential for blockchain technology to provide a fixed and reliable value amidst the chaotic financial market.
As the world of football economic continues to expand worldwide, systematic modernization through a regulated, Blockchain-powered framework can be the key to ensuring all clubs, regardless of size, market and location, has an equal opportunity to participate in the transfer market.
Winning day of the deadline
“Deadline Day” is the word used for the last day of the football transfer window, where clubs are frantically attempted to end deals, often at the mercy of technology and bureaucracy. In 2015, a Faulty Fax Machine prevented Manchester United’s former goalkeeper David de Gea in Real Madrid.
Related: Playbook for carrying millions of football fans on web3
Cross-border payments between teams in different countries can take days (or sometimes in weeks) to settle, creating a bottleneck that can hinder a transfer or risk club losing important deadlines. Bringing regulated crypto metals to play can allow transactions to be completed in minutes, featuring the potential to de-escalate the excellent characteristic of the day of the end time.
The implications of the introduction of blockchain technology in the football transfer market beyond the clock clock of the day. Smaller clubs in emerging markets can benefit by democracy accessing faster, cheaper and better metals. The concerns of the elongated times risk time dangerous deals are significantly reduced, empowering teams to participate effectively in the global market and attract basic talent.
The Financial Fair Play Ledger
More than just democracy access, crypto and blockchain may have a positive role in Rules in income and maintenance or playing fair in financial. These policies are aimed at lying the field of gaming in the transfer market but penalty clubs are faced, such as decreases in point, can ruin their periods and supporters.
Blockchain technology can help boost transparency and make football transfers more equal and seamless. By creating a so-called “Financial Fair Play Ledger” with all transfers and relevant financial onchain, transparency will increase dramatically, and clubs will prevent victimization of these policies and unnecessary penalties.
Crypto provides many solutions
Those cases were by chance, though; There is a wider field of opportunity here. Crypto payment metals can resolve the most important issue affecting the football transfer market by creating an overarching, regulated transfer market onchain. This will ensure clubs to comply with revenue and maintenance rules, enable smaller clubs to access the broader transition market by falling on cross-border exchange fees, and to overcome day of day by day by reducing the time of transfer settlement.
With many clubs embracing crypto sponsorship, there is a significant opportunity for the body -management that officially endorsed the blockchain technology and join them on the onchain. There is a real potential for blockchain technology and cryptocurrencies to be leverages as tools for better (and cheaper) cross-border football transfers, leading to a positive, extensive financial impact on the club, income sources and spending activities. Today, Crypto makes its mark in the world of football and sport, by sponsoring, but also, in particular, a quick lightning transaction at a time.
Opinion by: przemysław Kral, CEO of Zondacrypto.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
