Even if the German national team was eliminated early in the round of 16 at the European Football Championship against England, many fans are likely to continue to be in football fever. Finally, there were exhilarating matches to watch, such as the surprise victory of the Swiss team against world champion France or the goal festival of the Spaniards.

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But can investors also earn money with football? Many national and international top clubs such as Borussia Dortmund have long been listed on the stock exchange. And the price of the BVB share has recently risen significantly again, although the club has only just qualified for the Champions League in the Bundesliga next season.

Source: Finanzen.net

The BVB share is currently trading at around EUR 6.30. At the end of October 2020, however, the price was still at annual lows of about 4.20 euros. Thus, the price has risen by 50 percent since then and the investment has been well worth it for investors during this period.

However, the BVK share was already significantly higher. in 2018, the mark of 10 euros was even reached. Supporters of the Bundesliga club, who have already invested at that time, currently have to record losses of around 35 percent.

If a club plays a bad season or even goes down, the probability is very high that the share price will quickly rush into the basement. The more important the association is, the higher the demands of the investors. With listed top clubs such as Juventus Turin or Manchester United, a second place in the league or a lack of Champions League title can already cause a drop in prices.

Fan tokens available on Binance since December 2020

However, sports fans do not necessarily have to buy shares to invest in their favorite club. Meanwhile, more and more clubs and top athletes are also issuing so-called fan tokens, which can be traded like other cryptocurrencies. For example, the world’s leading exchange Binance offers its customers various such tokens, for example from Juventus Turin, FC Barcelona or Paris Saint Germain.

This is made possible by a cooperation between Binance and the fintech blockchain company Chiliz, which offers tokens from the sports and entertainment sector. The partnership was concluded in December 2020.

Chiliz runs the sports fan and rewards platform Socios.com, which has partnerships with some of the largest sports clubs in the world. And interest among investors seems to be great. In just over a year, according to Binance, over 370,000 users have already used the Chiliz offer. In addition, more than 14 million fan tokens have been sold and more than 700,000 votes have been cast on the blockchain.

Barca token sold out in 20 minutes

FC Barcelona’s Fan Token Offering (FTO) ($CASH) sold out within 20 minutes, bringing in $ 1.3 million, while Turkish team Trabzonspor’s fan Token Offering earned five million Turkish lira in less than five minutes.

In Binance’s Launchpool, users can get token rewards by staking different tokens. Changpeng Zhao, CEO and founder of Binance, says about the business model: “Chiliz has won a firm place in the crypto world with its fan tokens. These have the potential to drive mainstream adoption of cryptocurrencies around the world. We are very happy to welcome Chiliz to the Binance ecosystem and look forward to strengthening fan engagement and bringing cryptocurrency closer to a billion-dollar audience.“

According to the Binance CEO, the company has a vision to complete the tokenization of the sports and entertainment industry in the next five to seven years.

Source: Tradingview

So profitable are fan tokens really

But do the courses deliver what the full-bodied announcements promise? An analysis of two selected fan tokens:

On 21 December, the deal with the Fantoken JUV of the Italian top club Juventus Turin was launched. Already on the first day of trading, the price exploded from around 10 dollars to in the top 43 dollars. This corresponds to a steep increase of 330 percent.

But this price increase was not sustainable. Investors who bought directly at the start of trading and sold directly again a short time later have made the strongest profit so far. On the other hand, those who still hold JUV/USD in their portfolio today have to complain about a loss. Because currently the token is only quoted at around 7 dollars and thus significantly below the starting price.

Juventus tokens down 75 percent since May

A look at the daily candles of the token shows that the price is extremely volatile and price fluctuations of 50 percent are not uncommon. In addition, JUV/USD has been in a strong correction since mid-May, dropping more than 75 percent from $ 30.

Although the fan token follows the currently generally bad mood on the crypto market, but the correction is much stronger than, for example, the purchase of Bitcoin or altcoins such as Ethereum. Crypto investors betting on these leading cryptocurrencies have made fewer losses than with the Juventus fan token, at least in recent months.

The Fan Token from Paris Saint-Germain can also be traded via Binance. At the start of trading last year, the price was at $ 2.5 and has climbed to more than $ 7 in a day, a growth of 180 percent.

Thus, the price increase was not as strong as with the JUV token at the start of trading, but the following correction was also significantly lower. The value of the PSG token has moved up significantly in the following months after the market launch, reaching an initial peak at around $ 50 at the end of 2020.

Early investors who sold at that time were able to enjoy a return of 1,900 percent. In January, however, a sharp correction to seven dollars followed before the price recovered again and finally reached an all-time high of more than 61 dollars in May 2021.

Source: Tradingview

Token of Paris Saint-Germain with 432 percent growth

However, PSG is now trading at only $ 13.3. At 78.2 percent, the correction is similar to the JUV token. However, investors who got in early are still clearly profitable, unlike the token of Juventus Turin. The increase is still 432 percent against the issue price.

Thus, for sports fans, the bottom line is that the purchase of PSG tokens has been more worthwhile in the long run than the JUV token. This is probably also due to the weak sporting performance of Juventus Turin. The club of Christiano Ronaldo has landed in the past season of Serie A only on the 4th place and thus far below their own demands. Paris Saint-Germain, on the other hand, easily secured the Ligue 1 title and also advanced to the semi-finals in the Champions League.

The example shows that the purchase of the tokens of sports clubs should be treated with some caution. Because the courses depend significantly on the sporting success of the clubs and also on important management decisions such as player transfers and sponsor acquisition.