Last year, Sparta Rotterdam, a popular Dutch soccer team playing in the Eredivisie division, entered into a sponsorship deal with Knaken. Both parties agreed to set up a Bitcoin “Piggy bank” to fund the soccer team’s youth academy.
Recall that this is not the first time that Bitcoin and sports are linked together in such a relevant manner. Apart from the fact that there are Bitcoin-related companies sponsoring shirt deals, there are still a whole lot of options to explore. The Dutch cryptocurrency broker Knaken acknowledges there may be better avenues to explore. And entering into a deal with top-flight soccer team Sparta Rotterdam showcases that point perfectly.
Bitcoin’s Journey in the Sports Sector
To be more precise, Knaken.eu will reward the football club for their performance in the first division league in Bitcoin. The Rotterdam-based club will receive BTC reward anytime the team achieves a positive team effort. The performance reward will be decided among other things, based on the number of goals scored, a win, and how high they finish in the league or a cup won. The Bitcoin wallet is public, and everyone can view the balance.
According to the Knaken founder Ronald Jonkers, “Youth academies are the lifeblood of any sports team. During the early COVID-19 days, these academies faced a lot of financial pressure. Offering a helping hand is a beneficial effort. Bitcoin is the ideal tool due to its decentralized nature and its potential to maintain value over time”.
The Sparta youth academy is a renowned football club known for producing top-flight team players. The academy has produced top football players like Georginio Wijnaldum, Memphis Depay, Danny Blind, Winston Bogarde, among others. That’s why the crypto firm thinks that it is crucial to keep investing in them and that requires extra financial support. Due to Sparta Rotterdam being a tradition-rich club, Knaken acknowledges it is a great team to support with Bitcoin.
Under the current agreement, the Eredivisie club will earn 0.02BTC per goal scored. With the current price of Bitcoin hovering around $50,000 USD, Eredivisie club will earn around $1000 per goal. Other events eligible for rewards are; maintaining a clean sheet, winning games, and finishing in the Eredivisie rankings top 9 at the season end. Achieving these things will earn a BTC reward for the team.
During the season, the BTC wallet balance will be shared so that all the Sparta fans and other interested parties will follow on how things are going. When the season ends, Knaken will officially release the Bitcoin earned by the first team to Sparta who will, in turn, sell it and use the proceeds to invest in the youth soccer academy. With these extra funds, the team has every reason to work harder at all times. There youth academy’s future can have extra capital needed for their development. Also, storing the BTC after the season ends might even become a profitable investment to explore.
With this sponsorship deal, Knaken is now known as the first crypto broker worldwide to sponsor a club at the highest level.
Written by: Narender Charan