Lionel Messi’s Latest Deal With PSG Includes Payments In Crypto Fan Tokens
Argentine professional forward footballer and captain of the Argentina national team Lionel Messi moves to French club Paris St Germain (PSG) after 21 years in FC Barcelona.
After flying to Paris on Tuesday, Messi signed a two-year deal to finalize his transfer with an option for a third that will net him an annual salary of $41 million-plus bonuses along with a $30 million signing-on fee.
On Thursday, PSG said that Messi's "welcome package" includes significant cryptocurrency" $PSG Fan Tokens." The cryptocurrency has been provided by Socios.com who is the club's fan token provider.
PSG did not declare what portion of the deal involved the tokens but said he had received a "large number." These tokens are a unique type of cryptocurrency that allows holders to vote on often minor decisions related to their clubs. Like all other cryptos, these can also be traded on exchanges.
Furthermore, the volatility of the prices of Fan Tokens is on the higher end. PSG said, "The hype surrounding the latest signings in the club's busy summer transfer window created a huge surge of interest in $PSG Fan Tokens, with trading volumes exceeding $1.2 billion in the days preceding the move."
The Paris Saint-Germain (PSG) Fan Token has a market capitalization of about $52 million. Previously it was trading approximately at $23~25, doubling in price since Messi joined the club. An all-time high record was marked at over $60 on Tuesday.
Currently, 1 PSG Fan token = $41.24.
In 2018, Paris Saint-Germain made a pioneering step into the world of blockchain, becoming the first sports franchise to partner with Socios.com. Since then, Paris Saint-Germain and Socios.com have been working side by side.
Later, it released its own PSG Fan tokens which are basically cryptocurrencies allowing PSG token holders to vote on miner decisions pertaining to the club. Other popular clubs like Manchester City and Italy's AC Milan have also launched their fan tokens in the market.
PSG claimed the move to pay Messi in crypto positions it as one of the "most innovative and avant-garde brands in sport globally."
Marc Armstrong, Chief Partnerships Officer of PSG, said: "Fully embracing Socios.com and $PSG Fan Tokens has proved a massive success for the Club. We have been able to engage with a new global audience, creating a significant digital revenue stream."
After two decades of strong association with FC Barcelona, Messi has to finally bid adieu as it could no longer carry further the contract owing to strict financial rules imposed by Spain’s La Liga.
During his Wednesday’s conference, Messi said: “I’m really looking forward to getting out there in the field, and my hopes of winning remain intact, and that is the reason why I am here. I want to win another Champions League and I think I’m in the right place to do that.”