Messi joins crypto craze, receives part of PSG fees in fan tokens

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MIAMI (Reuters) – Football star Lionel Messis signing fees at Paris St Germain includes some of the cryptocurrency fan tokens from French clubs, in the latest big-name endorsement of new digital assets.

Soccer Football – Press Conference of Lionel Messi after signing for Paris St Germain – Parc des Princes, Paris, France – August 11, 2021 Lionel Messi of Paris St Germain and President Nasser Al-Khelaifi pose with a jersey on the pitch after the REUTERS / Sarah Meyssonnier press conference

The 34-year-old Argentine left Spain’s Barcelona squad and signed a two-year contract with Qatar-owned Paris St Germain (PSG) on Tuesday with an option for a third year.

Confirming an exclusive report from Reuters, PSG said on Thursday that the tokens were included in their welcome package, which the media estimated at 25-30 million euros ($ 29-35 million). The club did not disclose the proportion of chips in the package, but said the amount was significant.

Fan Tokens are a type of cryptocurrency that allows holders to vote on mostly minor decisions related to their clubs. Among the clubs that will launch chips this year are English Premier League champions Manchester City and Italian AC Milan. Former Messis club Barcelona launched one last year.

The tokens are increasingly seen by clubs as a source of new revenue and Socios.com, which provides the tokens for PSG and other big clubs, says the tokens have generated nearly $ 200 million for its partner clubs in 2021, with PSG already seeing revenue from the Accord with Messi.

Like bitcoin and other digital currencies, fan tokens can be traded on the stock exchange. They also share in common with other cryptocurrencies a tendency for wild price swings, leading some regulators to issue warnings to investors about digital assets.

Still, several business and entertainment personalities have backed crypto assets, with Tesla boss Elon Musk, Twitter founder Jack Dorsey and rapper Jay-Z among those showing their support for bitcoin.

PSG have said there has been a high volume of trading of their fan chips after reports that Messi will join the club.

Trading volumes topped $ 1.2 billion in the days leading up to the arrival of the six-time Ballon d’Or winner for the world’s best soccer player, the statement said.

We were able to engage with a new global audience, creating a significant source of digital revenue, said Marc Armstrong, PSG’s director of partnerships.

NEW TREND

The price of the PSG fan token has increased this week following rumors of the deal with Messi, with new sales generating around € 30m and PSG taking an undetermined majority of that amount – at least € 15m , said a source familiar with the matter. PSG declined to comment.

Fan Token price movements may have little connection to performance or results in the field.

PSG’s token, which has a market cap of around $ 52 million, has climbed more than 130% in just five days amid speculation that Messis will arrive at a record high of over $ 60 on Tuesday. They were last down 10% to around $ 40, according to the CoinMarketCap website.

Socios.com CEO Alexandre Dreyfus said PSG are profiting from his token and other clubs may emulate his deal with Messi.

I think this could be the start of a new trend, as fan tokens and Socios.com play an increasingly important role in sport at the highest level, he said.

PSG have won national titles since their deep-pocketed owners Qatar Sports Investment took over in 2011. But they have never won the prestigious and lucrative European Champions League. Messi has won it four times, most recently in 2015.

The arrival of Barcelona’s top scorer, with 672 goals, will bolster PSG’s ambitions and should increase income from trade deals and merchandise sales.

($ 1 = 0.8516 euros)

Reporting by Simon Evans, additional reporting by Tom Wilson Editing by Mitch Philips and Mark Potter

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