How sports project tokenization works
Vestadium splits the economic rights over a sports project into tokens. Each token entitles you to a share of the revenue the project generates, under the terms of its issuance.
Four steps to take part
Sign up and verify your identity
Create your account and complete the identity check required by anti-money-laundering rules.
Choose your favourite project
Read each issuance's page: amount to raise, proposed return, duration, project features, risks…
Decide how much to invest
Once you have analysed the proposal calmly and rationally, decide the amount you want to contribute to the club to support its project.
Check the state of your finances
On Vestadium you will have real-time access to all the information so you know how your investment is evolving.
What is a sports project token?
It is a digital record on a blockchain that represents a fraction of the economic rights over a sports project. It is not a share in the club and gives no say over sporting management: it entitles you to the revenue defined by each issuance. For more detail, read what is asset tokenization.
Where does the revenue come from?
Each sports project earns money in several ways. Every project page states which of them are shared with holders:
- Ticketing and season tickets.
- Sponsorship and in-stadium advertising.
- Naming rights for the stadium or arena.
- Event rentals: concerts, conferences and other competitions.
We explain it in more depth in how a club makes money.
Who does what?
| Party | Role |
|---|---|
| Club | Keeps running the project and raises financing without selling the club. |
| Vestadium | Structures the issuance, publishes the project page and runs the platform. |
| Token holders | Provide capital and receive their share of the revenue. |
| Custodian and auditors | Safeguard the assets and review the smart contracts. More in Security. |
Investing in tokens carries risks, including the loss of all your capital. Read the risk warning before investing.
Questions about how it works
To finance a project, a club can issue digital tokens that represent its shares or a debt issuance. These tokens come with economic rights over the club's future revenue selected in each case (ticketing, sponsorships, image and TV rights, stadium rentals, concerts…). This is recorded on the blockchain and can be transferred between investors.
The revenue each project produces (ticket sales, sponsorships, event rentals and naming rights) is distributed periodically among the holders of that token, in proportion to their stake and according to the terms of each issuance.
Depending on the terms of each issuance, you can sell your tokens on a secondary market, without waiting for the club or league to organise an exit round. Liquidity is not guaranteed: it depends on there being buyers.
Each project sets its own minimum amount, shown on its project page. Only invest money you can afford to lose.