Premier League signs NFT deal with SoftBank-backed Sorare

LONDON, Jan 30 (Reuters) – The Premier League is partnering with French fantasy sports platform Sorare to sell non-fungible tokens (NFTs), a sign that the sporting world continues to embrace digital assets despite the ruckus in the markets.

The deal gives Sorare a four-year license to sell digital sports cards to players from all 20 Premier League clubs, Sorare said in a statement on Monday.

Sky News reported in October that the deal could be worth 30 million pounds ($37.13 million) per year. Sorare declined to comment on whether the figure quoted by Sky News was accurate.

The cards in Sorare’s game are bought and traded in the form of NFTs, a type of blockchain-based asset, using either cryptocurrency or traditional currency.

Paris-based Sorare raised $680 million at a $4.3 billion valuation in a 2021 funding round led by SoftBank.

The UK’s gambling watchdog has been investigating Sorare since 2021 to assess whether their game constitutes gambling. Sorare chief Nicolas Julia said at a press briefing last week that the investigation is still ongoing. Elsewhere, France’s gambling regulator asked the company in November to make changes to the game, including expanding the free-to-play option.

“The way supporters follow their favorite teams and players is evolving and the Premier League is always looking for ways to engage with fans,” said Premier League Chief Executive Richard Masters.

NFT GAMING

NFTs rallied in 2021, but prices and sales volumes fell last year as investors became cautious and the crypto industry was rocked by a series of high-profile collapses.

Many top football teams and sports stars promoted crypto assets – such as NFTs or “fan tokens” – to fans during the boom. Supporters say they can be used to increase fan engagement, but critics say they risk encouraging financial speculation.

Members of the Football Supporters’ Association (FSA), which represents fans in England and Wales, “have been raising concerns about crypto-based engagement partnerships at their clubs for many years,” said a spokesperson, commenting on football’s engagement with crypto in general. , before Sorare’s announcement. “Supporter engagement should not make money”.

“The lack of regulatory oversight for crypto and NFTs is obviously something that followers should be aware of,” the FSA added.

The average selling price of a Sorare NFT fell to around $38 in December, down from a peak of $281 in March 2021, but the number of Sorare monthly buyers and transactions is near an all-time high, according to blockchain tracker CryptoSlam.

Julia said the company, which has more than 3 million users, has “trended very differently than the rest of the space” because the NFTs have “utility value”.

“We never market the game as an investment… it’s a collectible that you can play in a game.”

Julia said that 87% of current users play the game without spending money on the platform.

Sorare involves a cryptocurrency in the game, but Julia said he plans to change this, calling it the “last remaining friction” for players who want to avoid the volatility of cryptocurrencies.

($1 = 0.8079 pounds)

Reporting by Elizabeth Howcroft

Our standards: Thomson Reuters Trust Principles.