Football In The Digital Age: How Web3 Is Changing The Beautiful Game

Source: Disruption Banking

Football clubs around the world are beginning to tap into Web3, a technology dubbed the “next-gen internet” that’s all about giving control back to the fans. With blockchain and digital tokens, fans can now own a piece of their favorite teams or even vote on some club decisions. This is not just about tech for tech’s sake — it’s about loyalty, direct connections, and giving fans a real say in the clubs they love and support.

According to various experts, including Simon Peters from eToro, Web3 technology is reshaping sports, especially football, by giving fans direct ownership and influence. This deepens engagement in a way traditional fan models could never match, as seen with initiatives like Fan Controlled Football (FCF), where fans can directly participate in decision-making processes. With the rise of Web3, clubs see new ways to create loyal communities and connect more closely with their supporters.

One of the biggest stories in this Web3 movement is FC St. Pauli. This November, St. Pauli took a bold step by allowing fans to buy shares in their beloved Millerntor Stadium. Now, this wasn’t just some gimmick — it gave supporters a chance to own a piece of the action truly. St. Pauli raised significant funds through this program, which helps the club and its loyal supporters connect in a real way.

According to recent reports, the initiative has already drawn significant fan investments, which speaks to how much this club means to its community. On Monday morning, St Pauli shared that 6,650 people have already joined the Football Cooperative Sankt Pauli eG (FCSP eG), pledging a total of €8,661,500. The goal is to raise up to €30 million, with each share priced at €850, which is the minimum investment. The strong response so far has sparked real hope for reaching the target.

St. Pauli’s move has been seen as a step toward making football more democratic, where the fans aren’t just watching but are a part of the team’s success.

Discussing the initiative, “The cooperative is the perfect model for St. Pauli,” says club president Oke Göttlich. “It gives members and fans a stake under application of a general democratic rule – everyone has one vote irrespective of the number of shares purchased.”

Chelsea FC has engaged fans through digital collectibles, offering unique digital mementos that allow fans to feel more connected to the club community. These initiatives aim to foster a closer fan-club relationship without offering literal pieces of the pitch. The trend of digital mementos is catching on globally, with fans investing in similar collectibles across various clubs. It’s a unique way for clubs to connect with supporters and align with Web3’s ideals of shared ownership.

Teams Leading the Way with Fan Tokens

More teams are jumping on the Web3 train by launching fan tokens. These digital assets, often sold through blockchain platforms like Socios.com, allow fans to buy tokens that come with perks like voting rights on some club matters, exclusive merchandise, or access to VIP events.

Paris Saint-Germain (PSG) was among the early adopters of fan tokens, launching theirs in 2020. As of November 2024, the PSG Fan Token (PSG) trades at approximately $2.70 per token. The circulating supply is around 12 million tokens, with a total supply of 20 million. This initiative has given PSG a new revenue stream while offering fans a chance to be more involved, like voting on the cover design of the annual team jersey. With the token’s value rising by over 30% since its launch, PSG’s move into Web3 has been seen as a big win.

Over in Spain, FC Barcelona entered the Web3 space by launching its fan token, BAR, in June 2020. As of this month, the token is trading at approximately $1.98, with a circulating supply of around 8.7 million tokens, resulting in a market capitalization of approximately $17.35 million. The club’s initiative has provided a new avenue for fan engagement and generated additional revenue to address financial challenges. The token holders get access to things like exclusive content and voting on minor club issues, making fans feel like they’re a real part of the team.

“The sports industry will move from a passive fan to an active fan industry, where fans will have more influence.”

Alexandre Dreyfus, chief executive of Chiliz and Socios.com, notes.

Manchester City, another prominent club, introduced its CITY token in March 2021. This token allows fans to participate in polls and exclusive fan experiences, like virtual meet-and-greets with players. As of November 2024, the circulating supply of CITY tokens is approximately 7.77 million, totalling 19.74 million. The club’s initiative has enhanced engagement with supporters, offering them opportunities to participate in club decisions and access exclusive rewards. Manchester City’s fan engagement program has been so popular that other English clubs are looking to follow suit.

Juventus, an Italian powerhouse, launched its fan token even earlier, back in 2019. The Juventus token now trades at around $1.59, and its holders get a say on some decisions, such as picking the team’s pre-game songs. This has proven to be a hit, especially with young fans eager to have a say in club life.

Web3’s Future in Football

Web3 is opening doors to a world where fans aren’t just cheering from the stands but are connected to the game at a deeper level, with real stakes in their clubs. This technology could change the face of football in ways that go beyond the pitch – transforming loyalty, trust, and what it means to be a fan in the digital age.

As Web3 technology continues to expand, experts, including those from Deloitte, predict that more football clubs will adopt blockchain-based tools, such as fan tokens and decentralized apps, to foster closer and more interactive relationships with their fans.

An article by Altman Solon discusses how sports rights holders can leverage Web3 to create engaged fan communities. It highlights the potential of these technologies but does not provide specific metrics on loyalty increases. These digital tokens and ownership opportunities allow fans to feel like an integral part of the club’s journey, which is something traditional fan engagement methods can struggle to deliver.

Further, data from blockchain analytics firms indicates that football-related tokens have exhibited significant volatility over the past two years, with price movements closely tied to team performance, market sentiment, and broader cryptocurrency trends. These values aren’t just in the investment but in the community-building and the sense of shared purpose that Web3 creates. Supporters are no longer just passive observers — they’re empowered to engage, vote, and make their voices heard in real, impactful ways.

And thus, indeed, as HSBC’s Football clubs around the world are beginning to tap into Web3, a technology dubbed the “next-gen internet” that’s all about giving control back to the fans. With blockchain and digital tokens, fans can now own a piece of their favorite teams or even vote on some club decisions. This is not just about tech for tech’s sake — it’s about loyalty, direct connections, and giving fans a real say in the clubs they love and support.

The Path Forward: Setting a New Standard in Sports

Web3’s push into football is about digital tokens and fan ownership. But that’s not all. It’s about new revenue streams, better fan engagement, and community building. For clubs, these technologies provide ways to generate income beyond traditional ticket sales and sponsorships, which can be especially helpful for clubs facing financial challenges.

St. Pauli’s fan-driven stadium shares and PSG’s multi-million-dollar token sales illustrate how Web3 projects can provide a solid revenue boost. This movement is increasingly popular among younger fans who value being part of a community and having a say in their clubs.

On the fan side, Web3 offers a whole new experience. Supporters are no longer just passive spectators; they’re now participants with real influence over their club’s decisions, even if it’s as simple as voting on a team slogan or jersey design. Fans want to feel like they’re part of something larger, and Web3 provides that sense of belonging.

According to Mordor Intelligence, the blockchain in the sports market is expected to grow at a Compound Annual Growth Rate (CAGR) of 9.0% over the next five years. Blockchain research firm Chainalysis found that fan tokens were one of the fastest-growing blockchain assets, with total market value increasing by nearly 40% from 2023 to 2024 alone. This shift indicates that more clubs will likely consider Web3, not just as a passing trend but as a lasting change to how fans and teams interact.

As Web3 technology continues to evolve, it’s likely to reshape not only football but the entire sports industry. For clubs, adopting Web3 is about keeping up with digital trends and setting a new standard for what fan engagement can look like in the 21st century. By creating pathways for fans to engage on a deeper level, football teams are building a community that’s more resilient, passionate, and invested in the club’s success, both on and off the field.

If St. Pauli, Chelsea, and others continue to see success with their Web3 initiatives, we may soon see a wave of other clubs following suit. In a few years, the idea of owning a piece of your favorite team, influencing club decisions, or even “being there” virtually through the blockchain may be as common as buying a season ticket. Football, the world’s most popular sport, could become the most innovative in the digital age — proving that fan loyalty and digital transformation can go hand-in-hand, smoothing the road for a connected, inclusive future for the beautiful game.

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