Flamengo & MoonPay Team-Up to Launch a Multi-Year Web3 Loyalty Program
Are you a sports lover? If so, you must know about a few sports brand names that have made their name prominent globally from different parts of the world. One such popular name we’ll talk about today is Brazil’s most prominent sports brand, Flamengo.
On Thursday, Flamengo announced a multi-year partnership with MoonPay to develop and launch a series of web3 products. The fiat on-ramping service-turned-web3 infrastructure provider will try to improve fan engagement at the football club by featuring marketing, ticketing, and merchandise.
According to the official announcement of Ivan Soto-Wright, the co-founder and CEO of MoonPay:
“NFTs and web3 technology have helped increase fan engagement and loyalty as well as create new revenue streams worth hundreds of millions of dollars for sports teams around the world.”
Key Takeaways of This Partnership Plan:
- The partnership’s scope might encompass loyalty programs, one-of-a-kind experiences, and complimentary incentives, such as personalized food and beverage options during games.
- The revenue will be split between the two companies.
- MoonPay is making its debut in the sports industry with this move, joining other companies like Socios that have already established themselves in the sector; however not very successful as of now. It is mainly because brands like Socios are well-known for collaborating with football clubs to create fan tokens. These tokens have previously been chastised for being unpredictable and acting as a conduit for fans to lose money.
What is the Potential for Success in this Partnership?
During the pandemic, the method by which football teams make money has been thrown into sharp focus. As a result of the virus, nearly all sports have been forced to shut down, and lockdowns have resulted in games being played in nearly empty stadiums. As a result, according to the Deloitte Annual Review of Finance, the total revenue of European clubs fell by £3.4 billion ($3.8 billion), bringing them down to £22 billion ($24.7 billion).
Earlier in 2018, MoonPay announced the debut of HyperMint, a platform enabling brands to develop and mint their own utility NFTs. In September, they announced they would be doing an NFT scavenger hunt at the Universal Studios Theme Parks in person. In the past, it also had a side business in which it acted as a broker in purchasing and selling pricey NFTs on behalf of celebrities using a white-glove concierge service. During this recent investment round, MoonPay was given a valuation of $3.4 billion.
Considering these assessments of the prior approaches to making money by football teams and MoonPay’s approach toward new platforms, we can see an excellent scope for successful growth and revenue in this partnership.
So what is your view on this partnership? Would it make its way ahead of companies like Socios or face difficulties?