Opinion by: Przemysław Kral, CEO of Zondacryptto
The football transfer market has long been considered a world of discrete agreements and negotiations. The transfer window provides immense excitement to supporters who wish to see how clubs are preparing for the coming season.
It is not always smooth, given the huge capital requirements and the tight deadlines with which the clubs face to conclude the offers. There is an option that could overcome these problems. The answer has appeared in recent years, and the football industry is starting to adopt it.
Football has become an excellent partner in the cryptography industry, with a rapid increase in sponsorship agreements with football clubs representing 43% of all crypto sporting sponsorships over the past year, about $ 213 million, according to Sportquake.
It is possible for clubs to further enlarge these partnerships by integrating blockchain technology into their financial systems to increase transparency and democratize access to the transfer market.
Football clubs have already proven that the blockchain will work
It is not an entirely foreign concept in football transfers. In 2018, cryptocurrency was used for the first time for a transfer when Ömer Faruk Kiroğlu was bought by Harunustaspor for partially paid costs in Bitcoin. Several transfers have since been completed by the main clubs around the world, including Inter de Madrid, São Paulo FC and Raków Częstochowa.
These transfers have all been completed with reduced and bypass payment deadlines for many cross -border payments that could have slowed down transactions. The process becomes simpler with the development of more efficient and regulated crypto-native payment rails.
The advantages do not only apply to clubs – the guiding bodies, including UEFA, could also take advantage of the regulated crypto payment rails to automate the release of performance -based awards if the clubs qualify for the Champions League.
Overcoming turbulent markets
Player transfers require large amounts of capital; Not only are the initial costs and additional modules in several million, but the settlement and transaction costs for cross -border payments often mean that the clubs of the lower league have difficulty access to the global market.
An early example was when the São Paulo FC wanted to buy Giuliano Galoppo on the Argentinian side Banfield Athletic Club. However, the sale was in difficulty due to the turbulent Argentine FX market. This required stablescoins, which São Paulo FC used to finish the transfer for fees worth $ 6 and 8 million in USDC.
Although the transfer was then subject to the regulation of Argentinian exports, leading to the acquired advantage by using the crypto, the example highlights the potential of blockchain technology to provide a fixed and reliable value in the middle of the turbulent financial markets.
While the economic world of football continues to develop on a global scale, systematic modernization through a regulated Blockchain propulsion framework could be the key to ensuring that all clubs, whatever their size, market and location, have an equal opportunity to participate in the transfer market.
Winning deadline day
“Deadline Day” is the term used for the last day of the football transfer window, where clubs frantically try to finalize the agreements, often at the mercy of technology and bureaucracy. In 2015, a defective fax thwarted the former goalkeeper of the former Manchester United goalkeeper, David de Gea, at Real Madrid.
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Transfrontal payments between teams from different countries can take days (or sometimes weeks) to settle, creating a bottleneck that can hinder a transfer or risk clubs lacking crucial deadlines. The putting into play of regulated cryptographic rails can make it possible to finish transactions in a few minutes, highlighting the potential to defuse the eventful nature of the deadline.
The implications of the introduction of blockchain technology on the football transfers market will be beyond beating the clock of the day limit. Small clubs on emerging markets could benefit the democratization of access to faster, cheaper and more effective rails. The concerns of elongated established moments which risk compromising crucial transactions are considerably minimized, which allows teams to participate effectively in the global market and attract key talents.
The big financial show book
Beyond the democratization of access, crypto and blockchain could play a positive role in the rules of profit and sustainability or the financial fair. These rules aim to level the rules of the game on the transfer market, but the penalties are confronted, such as occasional deductions, can be devastating for their seasons and supporters.
Blockchain technology could help stimulate transparency and make football transfers more equitable and seamless. By creating a so-called “financial playlon register” with all relevant transfers and financiers, transparency would be increased in an exponential way and clubs would avoid taking prey from these unnecessary rules and penalties.
Crypto provides several solutions
These cases are however accessory; There is a much broader opportunity field here. Cryptographic payment rails can solve the largest problems affecting the football transfer market by creating a global regulated transfer market. This could more effectively guarantee club clubs to respect the rules of profit and sustainability, to allow small clubs to access the larger transfers market by reducing cross-border exchange costs and the same on the day of the deadline by reducing transfer settlements.
With more clubs adopting the sponsorship of cryptography, there is an important opportunity for the guiding bodies to give birth to the blockchain technology and to join them on onchain. There is a real potential that blockchain technology and cryptocurrencies be exploited as tools for more efficient (and cheaper) cross-border football transfers, which leads to a positive impact and on the industry level on club finances, sources of income and expense activities. For the moment, Crypto is making its mark in the world of football and sport, thanks to sponsorship, but also, more and more, a quick transaction to lightning at the same time.
Opinion of: Przemysław Kral, CEO of Zondacryptto.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
