A popular Portuguese football club has revealed that it may launch an initial coin offering (ICO) to raise funds. Sporting Clube de Portugal (SCP) has not been successful in raising the required amount through bonds. The club may join other sports teams such as Paris Saint-Germain, Newcastle United, and Cardiff City, which are already planning to launch their own Cryptocurrencies.
Cash-Strapped Sporting Clube de Portugal Ponders ICO
The popularity of initial coin offering (ICO) as a way of raising funds is growing every day as Sporting Clube de Portugal (SCP) became the latest football team to consider getting into the sector. Previously, ICOs have mainly been used by blockchain-based startups to raise funds. However, the success of most of these projects has seen more businesses in the traditional sector express their desire to join the sector.
Dinheiro Vivo quoted Francisco Salgado Zenha saying that they are already considering an ICO. However, the club’s vice-president said there is “nothing concrete” yet on the issue. He added that they are having a meeting to deliberate on the idea. The senior executive also noted that an ICO could go a long way in assisting the club to overcome the existing financial challenges.
Previously, Sporting has been unsuccessful in raising enough funds through bonds. On November 26, the club is supposed to repay investors of a previous bond. In the most recent bond, the club was targeting to raise €30 million ($34.2 million) at 5.25 percent gross annual interest rate. However, although the subscription soared, the bond did not meet the target. They managed to raise only €26 million ($29.6 million).
Sporting is already in a serious financial crisis and hopes that bond issues and maybe the ICO will help in addressing this challenge. The club has revealed that if it fails to raise the required funds through the available options, it may have to sell some of its players. The football team has revealed that it has “strategic decisions” that it needs to make.
Cryptocurrencies And ICOs in Portugal
Last year, regulators in the country were sceptical about Cryptocurrencies and asking the public to be cautious. The government kept a close eye on investment and brokerage firms involved in the sector or selling Crypto-related products. However, the situation has significantly improved since then given that renowned brands in the country such as Sporting are already planning to get into the sector.
Sporting, just like most of the other organizations issuing their own Cryptocurrencies may allow those who buy the coins to use them on their products and services. Most organizations prefer offering discounts on those who use their altcoins to encourage their adoption. According to Portugal’s Securities Market Commission (CMVM), any organization planning to launch an ICO in the country should clarify the judicial nature of their coins before launching them.
More Sports Organizations Getting Into Crypto
The sports sector has not been left behind in adopting Cryptocurrencies. Paris Saint-Germain made headlines a few months ago when it revealed plans to launch its own Cryptocurrency. In England, Newcastle United and Cardiff City football clubs have already held talks with SportyCo to help them raise funds through launching their own coins.