Messi's Contract Fee At PSG Is Partly In The Form Of Crypto Currency, Fan Token

JAKARTA - Lionel Messi's contract fee at Paris Saint-Germain is partly in the form of the French club's cryptocurrency, which is named a fan token. It was another big promotion for the new digital asset.

The 34-year-old Argentine left Barcelona to sign a two-year contract with PSG with the option of a one-year extension last Tuesday.

Confirming an exclusive Reuters report, PSG stated that the fan token was included in Messi's "welcome package" which the media reported was 25-30 million euros (Rp422-506 billion). The French club did not disclose the proportion of fan tokens in the package, only stating the number was "significant."

A fan token is a type of cryptocurrency that gives its owner voting rights over minor decisions related to his club. Among the clubs launching tokens this year are Premier League champions Manchester City and AC Milan in Italy. Barcelona launched it a year ago.

This token is increasingly being considered as a new source of income by a number of clubs. Socios.com which provides PSG crypto currency tokens and other top clubs stated that this token generated nearly 200 million US dollars (Rp 2.8 trillion) for its partner clubs throughout 2021. PSG itself received revenue from this cryptocurrency after signed Messi.

Like bitcoin and other digital currencies, fan tokens can be exchanged as exchange rates. Fan tokens are also commonly exchanged with other cryptocurrencies whose prices tend to fluctuate insanely, triggering central banks in various countries to remind investors about this digital asset.

But still a number of prominent business circles and famous figures use this crypto asset. Among those using it are Tesla boss Elon Musk, Twitter founder Jack Dorsey and rapper Jay-Z who all support bitcoin.

PSG are said to be trading their fan tokens in large numbers after reports emerged that Messi would join the club.

The trading volume of this cryptocurrency by PSG even surpassed 1.2 billion euros (Rp20 trillion) in the days leading up to the arrival of the six-time Ballon d'Or winner.

"We wanted to engage with a new global audience by creating a significant digital revenue stream," said Marc Armstrong, PSG's chief partnerships officer.

The price of PSG's fan tokens rallied this week following rumors of a Messi deal reportedly bringing in 30 million euros and PSG holding the bulk of that amount for at least 15 million euros (Rp253 billion), a source familiar with the matter said.

Fan token price movements are not greatly influenced by performance or field results.

The PSG token, which has a market capitalization of around 52 million US dollars (Rp 747 billion), soared to 130 percent in just five days amid speculation about Messi's arrival, until it touched 60 thousand dollars (Rp862,000). Then it finally dropped 10 percent to $40, the CoinMarketCap website said.

Alexandre Dreyfus, CEO of Socios.com, revealed that PSG profited from its tokens and other clubs could imitate its deal with Messi.

"I believe this could be the start of a new trend given that fan tokens and Socios.com are playing an increasingly large role in sport at the highest level," he said.

PSG has dominated the domestic league since its deep-pocketed owner, Qatar Sports Investment, acquired it in 2011. But the club has never won the prestigious and profitable Champions League. Messi himself has won it four times with the last coming in 2015.

The arrival of Barcelona's all-time leading goalscorer will boost PSG's ambitions, as well as boost commercial revenue and merchandise sales.