Mexican Football Federation stops Liga MX team from selling a stake in a NFT ๐จ This article is 3 years old...
Mexican Football Federation stops Liga MX team from selling a stake in a NFT
The Mexican Football Federation does not want a Liga MX team, Necaxa, to sell a 1% ownership stake in the team as part of a $1.3M NFT.
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Updated: Mar. 10, 2022 at 7:24 pm UTC
The ownership group for Necaxa, the Liga MX team, wants to capitalize on the NFT hype by selling a 1 percent stake in the team through an NFT. The ownership group which owns 50 percent of the team is led by DC Unitedโs Al Tylis and Sam Porter and includes soccer star Mesut Ozil and the Miami Heatโs Victor Oladipo. The 1 percent stake NFT will be auctioned on the OpenSea marketplace and will begin with a $1.3 million bid.
The bidders for the NFT will share the teamโs revenue just like other shares but will not have voting rights. The 1 percent stake would be permanent so even if the other investors take on dilution, the 1 percent will remain the same and will not have to participate in capital calls if the club needs more money.
Furthermore, unlike the other shares, the NFT does not need to give the existing ownership group the right of first refusal. However, during a sale of the NFT, the existing investors would get 10 percent.
Tylis told Bloomberg that:
โIf Iโm right, and there will be other sports teams [which create] assets that have NFTs, I believe that [this stake], which is the first of its kind ever, will have real, tangible, long-term value.โ
Liga MX doesnโt approve of the Necaxa NFT
The Mexican Football Federation which runs Liga MX published a statement saying:
โIn accordance with our regulations, membership certificates may not be transferred or modified under any figure other than the express approval of the Assembly of the MX LIGA and confirmation of the Executive Committee and/or the General Assembly of the Mexican Federation of Soccer according to our regulations.โ
They donโt support the NFT because it could be sold without their approval which is a requirement under their ownership rules. This likely means that the Necaxa NFT, if allowed to be sold, would have to go through Liga MX first.
The Necaxa NFT could be a landmark for blockchain in sports
Various sports leagues, teams, and players have already started working with NFTs. The NBA has already supported NFTs through Top Shot and their partnership with Dapper Labs. Fanatics, Gary Vaynerchuck, and Galaxy Digitalโs Michael Novogratz are starting an NFT company called Candy Digital. Adidas and Jaguars QB Trevor Lawrence teamed up for an NFT with Bitski.
However, this Necaxa NFT is unique in that it sells an ownership stake in a major franchise. It could mark a movement for sports teams to become DAOs. Necaxa is also unique in that it is not a US team and could spark global investment in NFTs and blockchain tech in soccer/football. The support of the worldโs largest sport would be very valuable to the NFT industry.
