After Albert Tylis NFT announcement we’re seeing NFT & sports collide with a unique stake sale.
Digital NFTs can now give the opportunity to buy an ownership stake in a professional sports team. This is one of the most exciting developments in the world of non-fungible tokens. The cryptocurrency phenomenon is creating new possibilities, and many are keen to test these ideas. One of them is former real estate executive Albert Tylis who turned his attention to sports investing in 2017. Tylis has interests in a few professional sports teams including Liga MX as well as the Welsh team Swansea City AFC and the Auckland basketball team The New Zealand Breakers.
Clearly, Albert Tylis likes to take a global approach to his sports team ownership and the NFT world is a perfect example of something that’s gone global. His hunt for the next investment opportunity took him to Latin America which is a region known for their love of soccer. What he saw was beyond his expectations. The US audience tunes in to watch the Mexican soccer league Liga MX at a higher level than the local Major League Soccer or the UK’s popular Premier League. This is probably due to the high number of Hispanic households in the US that continue to connect to their roots through the games.
The impressive numbers were hard to resist. Tylis was able to convince the Tinajero Family to sell 50% of the stake in Club Nexaca. It was a major purchase that involved a pool of investors who included actress Eva Longoria, Olympic medalist Bode Miller, pitcher Justin Verlander, German soccer player Mesut Ozil, and NBA players Victor Oladipo, Richard Hamilton, and Shawn Marion.
A week after the sale was approved, they announce an auction for 1% stake in the club. This was tied to an NFT with the auction taking place online at OpenSea.
Terms of the NFT Sale
Al Tylis admits that the https://finance.yahoo.com/video/mexican-soccer-league-club-necaxa-165723012.html inclusion of the NFT was a way for them to increase awareness. This is a unique proposition that ties a digital asset to actual ownership. Bidders were vetted to make sure that only serious investors participated. The winning bidder received an irrevocable percentage of the team, along with all of the benefits such as a cut of the annual revenues. The difference is that the NFT owner can transfer this ownership to anyone, subject to certain standards. This owner won’t have to chip in for future expenses so it can be seen as a passive investment.
The downside is that the 1% owner also doesn’t have voting rights. The LLC run by Albert Tylis and Sam Porter make the decisions on behalf of their investors. If the NFT gets sold somewhere down the line, then the original investors get a 10% royalty on the sale. The ownership stake will be registered in both the blockchain of the NFT and the legal documents that pertain to the club.
Reasons for Using NFT
Tylis hopes that the publicity generates more interest among young people who may not have been aware of the Mexican soccer league before. They are trying to shake things up and modernize the club’s image. This is the beginning of a new age in terms of fan engagement. With infinite applications of blockchain technology in sports monetization possible this is just the beginning of sports colliding with the crypto world.
The sale was also a fund-raising activity for charities including Project Sunshine and Rayos de Luz that support local communities.
For more information visit: https://projectsunshine.org/
