Globatalent DESCENTRA LIZED SPORTS
The SportS Challenge:
Nowadays, clubs and athletes have different ways of obtaining financial support. Their incomes usually come from TV rights, ticketing, sponsoring, hospitality, prize money and other minor sources of income. However, a lot of clubs undergo considerable difficulties, from an economic point of view, because their cash flow is not enough to support their financial needs due to high salaries, high interests paid to the Hedge Funds.
Currently, sponsoring rights, transfer rights and many other rights that are involved in sports, are centralized in just a few companies or agencies. To transfer soccer (football) players there are only a few main agents who control almost 100% of the entire market. Recently, the FIFA (International Federation of Association Football) banned Hedge Funds in soccer so that they cannot control financial fair-play. Sports should belong to the fans and not to a selected few. We must have decentralized sports where fans can invest in their sports idols and role models. Today, a fan who loves his team can only be a supporter and does not have any other rights.
Current Club Problems:
In soccer, an example of this existing problem is that Hedge Funds have lent money to some clubs to purchase sporting rights of players over the last years. They usually lend the club any amount of money at a high interest and they also keep a 30% (minimum) of the future players’ rights. When the club sells the player to another club, the investment fund gets its 30% of the total amount and also the interest of the total amount borrowed. The ethics of these investment funds have been considered controversial because they sometimes force the club to sell the player only because they want to recover their investment sooner, even if it is not a good strategical decision sports-wise. On the other hand, that same investment fund can lend millions to other clubs. Can you imagine a UEFA Champions League Final where the best players on both teams are funded by the same investment source? This can lead to unfair influencing of team results and match outcomes. This is not science fiction, this has happened.
Current Athlete Problems:
A young tennis player with talent, needs economic support to get on the ATP Top 100 or Top 50. In his or her early stage when they are fourteen or fifteen years old, they need to travel all over the world to get ATP points that allow them to get on the ATP list, but what happens if you do not have the economic support to travel all over the world, and you are a talented player? Currently, these young players unlikely achieve their sports goals or if they are lucky, an investment company may support them in exchange for 30% or 60% of their future incomes from prize money, taking advantage of young talents due to their vulnerability and financial dependency.
Our model sale of right:
SportS Access For Everyone:
Athletes are talented, determined, and intelligent. Individuals work hard to maintain a healthy lifestyle and hope to be successful in their respective disciplines. People look up to their favorite athletes and their teams, which is why we want people to feel they are also an important part of them, that they have participated and have been there from the beginning of a potential career. We will offer a new way of investing in sports in which each person can decide who to help and will not be limited by their knowledge of the sport or how much information they may have. Our blockchain will make investments easy, help talented athletes in a global and an adequate way. With this new investment model, we will no longer have a middle man who may want to benefit from our athletes or teams through their own bidding. Every athlete will have a fair, open pathway to effectively demonstrate their talent and reward their fans for it. Millions of fans will be able to invest in rising athletes or future allstar players by supporting their sports careers and profit from their success. This platform aims to help those talents to reach their best performance and help the less athletically talented ones to invest in those with more talent and be able to share their success. It is a win-win for both parties. The GLOBATALENT sports-market seeks to transform sport investment models by offering a worldwide, available, and open platform that will allow each user to decide where to invest by providing information of the relevant athlete or sport, beyond the user’s knowledge.
The Sport Market
By the end of 2017, the global sports-market is expected to generate revenue of approximately 91 billion U.S. dollars. That same year, revenue from the sports merchandising market in North America is expected to reach 14.2 billion U.S. dollars. The statistics depict the revenue generated in the global sports market from 2005 to 2017.
International Soccer Transfer Market Activity
According to the International Transfer Matching System (ITMS) from the FIFA, the number of transfers completed each year has been increasing steadily, and a new record was set in 2016 with 14,591 international transfers.
Spending on transfer fees has also reached a new high at 4.79 billion US dollars. The 14.3% increase from the previous year was the largest since 2013. Since October 2010, 22.67billion US dollars was spent on transfer fees.
Motorsport Market According
to a recent study from IndustryARC, the global market value of motorsports was $3.3 billion in 2015. The revenues are accumulated from different channels like sponsorship, advertising, ticketing, merchandising, hosting fees and broadcasting. The motorsports market led by the growth of the Formula Racing format across the world, will exceed the $6.5 billion mark by 2022 at a CAGR of 9.6%. F1 has been changed from an amateur hobby into the world’s most-watched annual sports series with 400 million viewers last year and an $8.0 billion value as Forbes revealed last April.
The average National Basketball Association franchise is now worth $1.36 billion, a 3.5 fold increase over the last five years. Fueling the gains are the NBA’s $24 billion media deal with ESPN and TNT that kicked off this season, a new collective bargaining agreement ensuring seven years of labor peace and massive international opportunities. Sponsorship spending on the NBA and its 30 teams totaled $799 million in the 2015–2016 season, an 8.1 percent increase from the previous year, according to IEG research. The 2017–2018 season marks the first of a threeyear trial period by the NBA to place sponsorship logos on player uniforms in a move to generate additional revenue. Now, 14 teams have already reached agreements that sum approximately $118 million and a $250 million potential in the following years.
The initial set-off of the platform will be through a crowd sale dashboard accessible via www.globatalent.io offering 500,000,000 out of roughly 850,000,000 initial GLOBA Tokens (GBT). GBTs will be distributed in two crowd sales;(1) a private pre-sale (2) followed by a primary crowd sale. 350,000,000 GBT will be excluded from the crowd sales which is described below in the “GBT RESERVE” section after the initial 850,000,000 GLOBA tokens are created
WHITE PAPER https://globatalent.com/whitepaper/