FC Barcelona, ​​Manchester City’s cancellation of crypto transactions shows that cash is not everything

The sports industry has been hit hard by the coronavirus pandemic. Most leagues were suspended, and then the team played for a long time without spectators. Sports clubs are beginning to seek new sources of income, and the cryptocurrency industry is coming to help make lucrative deals.

Numerous partnerships between major sports clubs It made headlines last year.even National team and major club unions Join the trend.So, it’s even more surprising that when FC Barcelona and Manchester City, The two largest football clubs in Europe, termination They had crypto-related sponsorship deals in the same week.

After the arrest of Israeli crypto entrepreneur Moshe Hogeg, FC Barcelona cancelled its partnership with the non-fungible token (NFT) market Ownix​​, and he was one of the company’s consultants. Ownix​​ soon negative Any organic link to Hogeg in the Twitter flood. Cointelegraph contacted Ownix​​, but the company declined to comment further on this issue.

Manchester City also suspended transactions with 3Key, which the club announced a week ago as a regional partner for “decentralized financial transaction analysis and consulting technology.”

related: FTX buys Super Bowl advertising space to promote cryptocurrency to 92 million TV viewers

The sports industry is eager to join the NFT hype, Morgan Stanley predict Become a 12-digit market by 2030. Timothy Mangnall helps sports clubs better understand the cryptocurrency and NFT world through his NFT agency Capital Block. He told Cointelegraph that it is easy for clubs to forget that they have a professional background in the company and before entering into long-term business transactions.

In the months before the announcement of the deal with Ownix​​, many NFT markets have approached Barcelona. Mangnall explained that many competitors already have an excellent track record in the NFT field, but Barcelona chose to adopt a little-known brand in this field:

“What this tells me is that Barcelona only looks at the money on the table and not doing it like other sponsorship agreements. This is proper due diligence.”

He added that the crypto market is full of small NFT companies, and they are preparing to put out ten times more funds than the main exchanges, just to make big deals with sports clubs, he warned that this is true for any club A red flag, and then they should doubly close the internal review process to gain insight into the company and the owner.

related: Los Angeles Staples Center will be renamed Crypto.com Arena

Tokenization is a product of blockchain technology that attracts large companies with a large amount of brand value and fan base, Ahmet Usta added, Blockchain 101 Co-founder of Avaxtars and Crypto Mandala NFT project: “As early adopters, clubs naturally hope to get high returns from fan tokens and NFTs. However, they should focus on their tokens and NFTs through innovative and reliable business models. The product adds value.”

NFT will not go anywhere and will be part of our future, Timothy Mangnall concluded, adding: “The club should not be afraid to miss the current hype, but take a step back to understand the industry and do it for the next three years. Plan for a minimum of years.”