Could Blockchain technology bring fans closer to their clubs?

Football and technology have a strong relationship. Technology allows fans to watch stream games, tweet from stadiums and glimpse inside the lives of players. It also ensures that the top players they support are fitter and stronger then ever. What it hasn’t been able to do is stop clubs from losing touch with their core fans and the influx of foreign owners.

A quick look through the owners of clubs in the Premier League and Championship reads like a map of the world with investors Russia, USA, Egypt, Saudi Arabia, Greece, India, Thailand, Malaysia, Iran, Pakistan, UAE, Italy, China and Switzerland all holding stakes in clubs.

These investors have put their hands in the vast pockets, not for social causes, but to enhance personal brand and leverage off the appeal and revenues of Football in the top two divisions of the UK. Football is a big business after all, so it is hard to disagree with the logic, especially when the riches of the Premier League’s TV deals enter the equation.

As is often the case with foreign owners, their decisions, especially when clubs are struggling, do not win favour with the fans. One such fan group, disgruntled with performances on and off the field have made a move which would bring football back into the hands of fans; it involves the use of blockchain technology. 

Hull City Supporters Trust are the fan group in question. The trust has partnered with a lead investor with support from blockchain company SportyCo to launch a takeover bid.

Their aim is to raise the ￡45 million to buy back their club. SportyCo, for their part, is a type of crowdfunding platform – a bit like Kickstarter but instead of putting cash in, supporters contribute by purchasing cryptocurrency.

For those not familiar with terms like cryptocurrency and blockchain, here is a quick intro. Blockchain is digital information to be distributed, but not copied, so each individual piece of data can only have one owner. In one word, transparency. Cyptocurrency is a digital currency used as a medium of exchange.

The benefits of blockchain are far reaching. Transparency is a key aspect. Fans will be able to see who owns what and if it transfers, to whom is transfers to. Data is protected from tampering and the blockchain technology prevents human error in accounting. Voting within the club would also be transparent with electoral fraud prevented while the elephant in the room is the fact it works as a way to raise funds; in other words it is hot right now, especially among younger, more tech savvy investors, therefore introducing clubs to a new investor pool.

Cryptocurrencies are becoming more common in football. ChiliZ, a Maltese based company, recently announced deals with PSG and Juventus via their Socios platform, while SportyCo themselves are already in partnership with La Liga side Espanyol with FansUnite working with Leicester City.

Another blockchain company eToro have deals with 7 English sides; Tottenham Hotspur, Brighton & Hove Albion, Crystal Palace, Cardiff City, Leicester City Football Club, Newcastle United and Southampton announced they had signed up to host eToro advertisements with the fees paid in Bitcoin.

If Hull succeed this would be the first time a takeover has been completed using blockchain and it could lead to even more.