Brazilian football team to tokenise FIFA player transfer fees. Vasco da Gama and Mercado Bitcoin, one of the largest cryptocurrency exchanges in Latin America, have announced plans to tokenize the rights of the solidarity mechanism of FIFA.
Under this partnership, the solidarity process will be tokenized by Vasco and Mercado Bitcoin, and token holders will be entitled to a percentage of the sales value of each player to the creation of the athlete club.
According to information that Mercado Bitcoin, there will be 500,000 tokens in total which they hope to sell for a total of R$50 million (around US$ 9 million). Each token will correspond to a fraction of the solidarity mechanism rights of 12 athletes who joined Vasco da Gama’s youth teams, among them football stars like Philippe Coutinho, Douglas Luiz, Alex Teixeira, and Allan Marques Loureiro, each of them successful in other prominent teams in Europe and Asia.
“We are a club that has traditionally developed great players. Many important Brazilian players emerged in São Januário”, said Alexandre Campello, Vasco’s president, citing the club’s headquarters.
According to Campello, the club has been looking for opportunities to use cryptocurrencies to generate new revenue since 2018. He explained “This initiative is part of the strategic planning actions implemented by the current management, with a strong commitment from the financial, legal and football departments, and with the financial assistance of KPMG.”
To achieve its objectives, Vasco is also a partner of MBDA, a business responsible for the tokenization of many alternative assets in the Mercado Bitcoin ecosystem. The club has also partnered with renowned lawyers specialising in sports, digital currency and securities enforcement matters.
Also according to the announcement, the team formally consulted with the Brazilian Securities and Exchange Commission to confirm the understanding that the token is not classified as a security.
“This is a token that should change the way football deals with FIFA’s solidarity mechanism. Vasco is the first club in the world to have this token, but we want other clubs to have access to it,” says Reinaldo Rabelo, CEO of the Mercado Bitcoin. “We are confident that we are creating a new source of revenue for football clubs.”