Nov 23, 2018 09:30 UTC
Nov 23, 2018 at 09:30 UTC
Impoverished Portuguese Football Club Finds Alternative to Raise Funds
As struggling through a bond issue, a popular Portuguese football club, Sporting Clube de Portugal, is reportedly considering launching an ICO as an alternative way to raise funds.
As indicated by a local news outlet ‘Dinheiro Vivo,’ Francisco Salgado Zenha, the vice-president of the club, claimed that the organization is currently pondering the option, though there’s still nothing in particular on the subject. He was quoted as stating –
“We are looking closely at an ICO. We’re having meetings about it. There is a great value potential in the Sporting brand.”
Then, referring to the cryptocurrency ecosystem, the manager emphasized that the goal of the club would be to benefit from this new world. The move comes as the club because the sporting club is completing a bond issue whereby it’s offering investors a 5.25% gross yearly interest rate to raise $34.2 million.
Currently, the Sporting needs the funds as it needs to repay the investors for the other bond issue which is maturing on 26th November. Where the club managed to see the subscription orders soar when it got staff to promote the problem, it stopped by raising $29.6 million falling short of its target.
Cryptocurrencies issued by companies like Sporting can be utilized for buying products and services at a certain discount, though the club hasn’t revealed its plans yet. The nation’s Securities Market Commission has asked organizations looking to issue ICOs to clarify before any emission, the judicial landscape of the tokens being issued.
Sporting has notably revealed itself that if it doesn’t go well to raise funds that it needs through the bond issues as well as an ICO, then its strategic decisions may be limited and may even need to sell players.
Of course, it’s not the first football club that’s planning to launch its own cryptocurrency. There have been numerous examples including Brazilian football club Avaí, French soccer giant Paris Saint-Germain, and many more.