Cryptocurrency company London Football Exchange Group (LFE) is expected to buy an 80% stake in a major Australian football club Perth Glory; and has plans to tokenize everything from ticket sales to fan engagement through its token. The football club plays in the A-league.
LFE announced on Wednesday that it has agreed a deal to acquire a majority stake in Perth Glory Football Club, subject to approval from Football Federation Australia. The transaction is believed to be the first of its kind in football world, with LFE aiming to taking over clubs in England, Italy, Spain, France and other countries in South America and Asia.
As part of the deal, the London-based LFE’s recently appointed chairman, Tony Sage, who is also chairman of Perth Glory, will remain chief of the soccer club.
The underlying the LFE ecosystem is a marketplace for football fans to buy items such as tickets or licensed apparel using the LFE cash token.
Clubs also save money due to crypto’s low transaction fees. If the fans are paying using our wallet, and scanning QR codes at the merchants around the stadium, the club will not need to lose payment processing fees to Visa and MasterCard. LFE takes a cut of those transaction fees, and also holds a large amount of tokens.
Football in the Digital Age
Sports clubs in England and across Europe have leveraged on crypto payments in the digital age, using them to grow their global fanbase and increase revenue.
LFE is aiming to show that this strategy works equally effectively in Australia, where football is enjoying a renaissance. Melbourne City has already adopted the multi-club ownership model pioneered by the likes of Manchester City and New York City.
LFE has plans to roll out a similar model at Perth Glory, acquiring a string of clubs that will be overseen by a single group while retaining the values that have made the Australian club successful.