In 2021, former Real Madrid forward David Barral became the first professional player to be signed through a Bitcoin transaction. In the same year, Perth Heat – an Australian Baseball League Club – made history as the first team to fully operate on Bitcoin.
Given its rapid growth in acceptance, it appears more than likely that the sports industry will soon see various applications of the virtual currency. This includes but not limited to player salaries and sponsorship deals as well as transfer fees.
Not forgetting bookmakers who are also embracing Bitcoin sports betting. Most gambling sites today accept Bitcoin deposits and withdrawals. This has fueled the emergence of several football betting sites using crypto to provide secure and convenient payment methods.
But is there a future for Bitcoin payments in football? Read on to find out.
What is Bitcoin, and Why is it Causing a Stir?
In simple terms, Bitcoin is purely a digital currency that allows individuals to buy, sell, and exchange without an intermediary. It was the world’s first virtual currency – introduced back in 2009 – created through cryptography.
Bitcoin is considered a decentralised digital currency with thousands of computers worldwide running it. These systems (nodes) coordinate to store, verify, and record all Bitcoin transactions in a blockchain ledger.
According to the pseudonymous creator of Bitcoin, Satoshi Nakamoto, Bitcoin is a version of digital cash where users can send payments directly to other parties without going through a financial institution. However, due to the lack of normal financial control over Bitcoin, regulating or shutting down this digital payment method is nearly impossible.
Bitcoin Payments in Football
Bitcoin is gaining popularity in football and is becoming increasingly common as a payment method. Moreover, cryptocurrency providers are sponsoring various football clubs and teams across the globe. From signing new players to paying staff, Bitcoin (and other cryptocurrencies) suggests a strong presence in football.
In January 2018, for instance, a Turkish football club – Harunustaspor – were the first team to sign a new player using Bitcoin. The player received 0.0524 in Bitcoin and 2,500 Turkish Lira as part of the contract.
In other scenarios, Gibraltar United Football Club paid partial salaries to its players in cryptocurrency after receiving sponsorship from Quantocoin. Watford FC, an English Premier League club, also received a sponsorship payment in cryptocurrency.
In the FIFA World Cup 2018, a betting site created its own token, UNC, for punters to bet with on matches. Lionel Messi’s transfer from FC Barcelona to PSG also included cryptocurrency, where PSG settled a one-time bonus of one million euros to Messi in the form of PSG tokens.
UEFA and FIFA have both been seeking crypto partnerships, with the latter organisation inking a deal with crypto.com back in 2022.
Based on the examples above, it is clear that Bitcoin is gaining traction in football, and more teams might be considering this payment method.
What is the Future of Bitcoin Payments in Football?
Major global investment platforms predict that Bitcoin will be used in football to largely sign new players in the near future. However, experts warn that most football teams could be heading to a dangerous and unregulated world if it’s not carefully planned. In return, it could result in negative consequences, especially when clubs move too quickly.
While football continues to get involved in blockchain technology gradually, the primary focus lies on bringing in supporters and sponsors. But the trend has accelerated very fast over the last few years. Top-flight clubs like Juventus, PSG, and FC Barcelona have partnerships with various crypto platforms.
More clubs are doing the same, while others already use Bitcoin to pay players and transact when transferring or acquiring new ones. With this trend, Bitcoin (together with other cryptocurrencies) will be part of football in various ways. This indicates that it is highly likely that more football leagues and clubs will consider crypto as a payment method in the future.
Kicking Off the Future: Bitcoin and Football Transfers
Despite the surge in interest in digital currency, football clubs should be aware of the risks. The legal and regulatory environment remains uncertain while the value of crypto-assets is still volatile. Yet, Bitcoin and other cryptocurrencies provide an exciting new frontier for the sporting world.