Messi contributes to the meteoric rise of ‘fan tokens‘ as cryptocurrency enters the football industry

<p>The emergence of cryptocurrency-related businesses in football coincides with countries enacting legislation to kerb gambling sponsorship.</p> <p>Chiliz, the Paris Saint-Germain "fan token," has increased in value by over fifty percent in just four weeks as Lionel Messi's move to the club increases awareness of the cryptocurrency.</p> <p>When Paris Saint-Germain signed Lionel Messi, the salary package included an unprecedented feature for a player – a one-time payment in PSG "fan tokens" estimated to be worth around $1.15 million (one million euros).</p> <p>It was the result of a partnership between the French giants and Socios.com in 2018, which allows fans to purchase tokens allowing them to vote on club-related issues using the cryptocurrency "chiliz."</p> <p>The company has grown rapidly since its initial partnerships with Paris Saint-Germain and Juventus, expanding to 56 football clubs and approximately 100 sports teams worldwide, according to CEO Alexandre Dreyfus.</p> <p>Messi has garnered additional attention, and Dreyfus believes the Argentine will "set a trend."</p> <p>"This is more of a supplement that will never replace any compensation. It's more of a bonus, but it's one that players will eventually demand "As Dreyfus put it.</p> <p>"We hope that two years from now, during the 'mercato', a player will say, 'Yes, I am going to that team, but they better give me a million dollars in fan tokens.'"</p> <p>Dreyfus acknowledges that the pandemic and ensuing economic crisis benefited his company by allowing it to expand its partnerships.</p> <p>"The reality is that clubs suddenly lost 50%, 70%, or even 80% of their revenue and realised, 'Hey, we have fans all over the world; what can we sell them?'"</p> <p>'An insignificant revolution'</p> <p>They have now signed shirt sponsorship deals with Inter Milan and Valencia in order to promote their fan tokens.</p> <p>According to a new analysis by KPMG Football Benchmark, over 40 shirt sponsorship deals have been signed in Europe's five biggest leag