The Necaxa team of the Mexican soccer league is auctioning 1% of its shares in NFT format, or non-fungible token, through the Open Sea market. Those interested in participating in the bid and becoming potential club members must bid as minimum 1.3 million dollars.
The token, validated on the Ethereum network, is an animated 3D representation of the club’s crest. On the back it contains a message in which it is read that the NFT is the only one of its kind (1 of 1) and that it represents 1% of the ownership of the shares.
To apply, the interested person must first register on the Necaxa website for the NFT. This step is mandatory as the club will not sell the shares to anonymous or pseudonymous users. That is, before bidding on Open Sea the Applicant must meet KYC or “Know Your Customer” requirements. The auction has already started and will continue for two weeks, but there are no offers for the token yet.
Necaxa’s NFT is an animated representation of its logo in 3D and is now available in the Open Sea market. Source: Necaxa.
Whoever is favored in the auction may transfer the participation to whomever they wish, provided they comply with KYC standards. Also, the 1% will be permanent, even if the board of directors issues more capital and the rest of the shares are diluted. The new member will not have the right to vote, but he will not be obliged to pay money in case the club requests it to, for example, build a new stadium.
According to investor Al Tylis, who recently acquired 50% of the club through the NX Football USA group, the strategy of launching a Necaxa NFT aims to arouse interest among fans. Along with Tylis, the investor conglomerate also includes actress Eva Longoria, model Kate Upton, German soccer star Mesut Özil, Major League Baseball pitcher Justin Verlander and NBA player Victor. Oladipo.
“We are entering a nearly 98-year-old brand that the vast majority have not heard of yet, and we are trying to be avant-garde and do things that are novel and interesting. It is a new class of assets, in which we are creating the first of its kind, ”Tylis explained as quoted by Bloomberg.
Federation rejected the sale of the NFT
Recently the Mexican Football Federation (FMF), in conjunction with Liga MX, issued a statement in which they rejected the commercialization of Necaxa shares through an NFT. Sports organizations do not recognize this sales mechanism as valid.
“The direct or indirect shareholding of a LIGA MX Club is not subject to any type of exchange, or purchase by any means or form of payment (including NFTs) other than those previously recognized in our regulations,” said the FMF .
Necaxa replied to the message from the federation and the league by saying that the FMF itself authorized the share sale to NX Football USA. Now what the new group of investors is trying to do is bring the fans closer to the “Necaxa family” and promote “healthy competitiveness for the benefit of Mexican soccer,” the club said.
The league does not agree to the sale of shares in the form of NFT. However, in April of this year, it announced that it would launch a collection of non-fungible tokens as a form of diversification in the face of the crisis that triggered the pandemic by COVID-19 in the sports world, a fact reported by CriptoNoticias.