Introduction
Popular crypto exchange platform Kraken recently announced yet another partnership with a sporting organization. The new partner is a well-known English Premier league club Tottenham Hotspur FC. As exciting as this sounds, Kraken is really pushing the limits to increase its presence in the world of sports. Remember that just few days ago, I brought us news that Kraken linked up with a Spanish football giant Atlético de Madrid. You can check the update here. Now, Tottenham has joined this growing list of crypto and sports collaboration.
The Kraken team are a lot upbeat about the potentials for growth and market expansion with this new partnership. The English premier league is watched by millions of people in England and still more people around the world. With this mammoth crowd and market, both organizations would benefit with Kraken delivering top-notch crypto services while leveraging Tottenham hotspur huge followership. Here is what the Kraken marketing team said about this partnership:
Spurs supporters and the crypto community both have an undeterred and relentless passion for what they believe in. Kraken’s vision is that crypto, like football, should be accessible to everyone. We’re thrilled to partner with Tottenham Hotspur to bring this inclusive financial technology to a larger audience of football fans. source
On their own, Tottenham Hotspur also expressed great interest in this new deal with a crypto exchange platform. The enthusiasm lends to the fact that these are two giants in their respective industries. The partnership would likely open up new frontiers both for the football club and Kraken - the crypto exchange platform. Tottenham Hotspur announced it this way to its global fans:
Introducing krakenfx - the Club’s first-ever Official Crypto and Web3 Partner, and the Official Sleeve Partner for our Men’s and Women’s teams. Get ready for a game-changing partnership! source
Sharing a common market
Both Kraken and Tottenham are coming together for the first time as business partners. The move is designed to give each partner a ground to push and achieve business objectives. These two organizations seem to share a common market in the people that follow their interests. Many football fans are also into cryptocurrencies. At the same time, many crypto users are fans of one sport or another - like football. So the market intersection is what is bringing the two together.
For the football club Tottenham, they are unleashing a platform for their fans to get onboarded into the latest tech innovation of our time - cryptocurrencies. Kraken will allow hotspur fans to start or enhance their experience in digital assets and cryptocurrencies. For example, they would have access to free crypto wallets where digital assets of various forms could be stored and managed. As web3 is trying to bring a revolution in how data and digital values are managed, Tottenham fans would not be at the back seat as regards this modern revolution.
Kraken would have unlocked another huge market with this partnership with Tottenham hotspur. Every business wants to grow and expand their markets. With this official endorsement from Tottenham, lots of fans of this club would already start getting involved with Kraken in one way or another. With millions of fans from around the globe to access, Kraken would have enlarged its markets and expanded its scope. But beyond the mutual benefits that would come to the two organizations, Web3 is all that sports - football in particular - needs.
Breaking Sports tradition
Just as other sectors of human endeavor, the world of sports is full of middlemen who just take a lot of value off the market for perceived services rendered. The more web3 partners football, the more it is possible to replace some traditional method of running football business. Consider the following important area of player movements between clubs.
- Managing player transfer deals: The world of football like other sports is complex business. There are various middlemen handling one thing or the other. When a player needs to move from one club to another, a football agent who is paid by both player and clubs is there to negotiate deals. The agent contacts interested clubs to discuss sign on fees, personal terms, contract duration, and a lot of other things. At the end of it all, the agent collects some money from all parties which eventually makes the deal to go up. But smart contracts could handle that.
A player could have all his demands and terms built into a smart contract which is placed in a decentralized player markets. The contract would contain every demand and requirement from the player. That would include all the money terms, appearance fees, and any potential rewards for personal achievements. Then this smart contract is placed in the market.
When clubs come to shop for a new player, they will carefully study the terms of the contract and check if they like it. Of course, the club will also have its on smart contract, putting together the requirements they would love the player to meet in order to sign for the club. If the two parties agree to the contracts, they would each activate it. The player is signed and transfers to the club. Each term of the contract automatically executes when the conditions are met. This way, both parties feel confident about the contract.
Possible gains
One of the positives of using a smart contract for player transfers is that cost is saved. Football fans around the world already complain about the high sign on fees of football players. This fee is high partly because the agent fees are included. But with a smart contract that self-executes, there would be no agent fees and this would drastically reduce the cost of football management especially when player transfers are involved.
Also, using a smart contract would reduce sports litigation. Today, there is even a court for sports arbitration. Player and club disagreements would reduce because only when a party fulfills their own part of the agreement will they receive the benefits. So there will be less court cases involving contract issues.
Finally
Congratulations to both Kraken and Tottenham hotspur. Both can leverage each others strength and values to achieve business objectives. We hope that gradually, web3 would build a stronger presence in football - and the world of sports as a whole.!
note: thumbnail is mine!