Socios, the leading fan token platform, has agreed to sponsorship terms with the National Football League (NFL). Socios provides blockchain technology for teams to sell their own fan tokens.
The agreement with 13 teams in the NFL is the first of its kind. Socios will now be able to market in stadiums and provide fan experiences like meet and greets with players. The NFL had to alter its regulations around team sponsorships and associations with blockchain companies for the deal to even happen. Previously, NFL teams were not allowed to enter these kinds of business ventures.
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Fan tokens run on Chiliz
Socios is the company that provides blockchain technology for teams to sell their own fan tokens. A fan token is similar to a share in a publicly traded company or loyalty program. Socios operates using the Chiliz (CHZ -0.25%) blockchain to facilitate transactions of fan tokens. The CHZ blockchain could be compared to a highway and the fan tokens are the cars driving on the road.
Owners of tokens gain access to rewards, community voting, and other perks. For example, holders can vote on which uniform a team wears. Holders could also be rewarded with tickets to games or apparel. Some European soccer clubs have even let holders vote on the location of exhibition matches. The concept is still fresh and many use cases are still being created.
Yet another milestone
Socios now has varying degrees of affiliation with some of the top sports leagues around the world. High profile European soccer teams, like Juventus, Paris St. Germain, FC Barcelona, and Manchester City all have their own Socios based fan token. Stateside, Socios has sponsorship agreements with the National Basketball Association (NBA) and National Hockey League (NHL) as well.
Although the agreement is only a sponsorship deal at the moment, Socios now has their foot in the door with the most lucrative sports league in the world. Eventually, the goal would be an agreement with NFL, NBA, and NHL teams to create fan tokens similar to the ones European soccer powerhouses already have.
The real opportunity
Instead of trying to find the next fan token that rises in value, investors should look at the base layer that all of these tokens use: CHZ. Just like the fan tokens, CHZ can be traded. Think of CHZ as the stock of Socios. As more people begin to trade fan tokens, more people will utilize the CHZ blockchain. It could be compared to cryptocurrencies with vast ecosystems like Ethereum (CRYPTO: ETH) or Solana (CRYPTO: SOL) that rise in value as more developers use the network.
The NFL's fan base is orders of magnitude larger than any of the European markets that Socios currently serves. The same goes for the NHL and NBA. It remains to be determined, but Socios is in a position to be the fan token blockchain for three of the largest sports leagues in the world. That type of user growth would mean great things for CHZ.
It might take some time before fan tokens make it to the NFL, NHL, or NBA but the first step has been made. Astonishingly, Socios claims to have grabbed just 10% of the current fan token market share. Despite being down 70% from its all time high in March 2021, the current price of $0.24 seems enticing when considering the company has not reached its full capacity.
There is promise for Socios. They are revolutionizing new means of interaction between fans and their favorite teams. But as it stands, there are just as many questions to be answered. If Socios can capitalize on these opportunities, the possibilities are endless.
Individual fan tokens will rise and fall with a team's success. But CHZ is what makes all of this possible. CHZ does not rely on a team's success, but rather the success of Socios. If current sponsorship agreements with the NFL, NHL, and NBA transform into fan tokens, CHZ may be suited for long term success. Be on the lookout for Socios to partner with your favorite sports team.
