What would have happened if it had been possible to invest in the key figures of the Argentina national team before the World Cup? After Qatar, an investor would earn 57% on Enzo Fernández in dollars or euros; 56% on Julian Álvarez; 31% on Alexis Mac Allister and 14% on Rodrigo De Paul.
These are the calculations of WIN Investments, a startup based in Spain but based in the city of Buenos Aires, which offers anyone the opportunity to participate in a footballer’s pass.
The idea was to two Argentinian entrepreneurs, Valentin Jaremtchuk and Gonzalo Busnadiego, who launched the platform for those who want to participate in the benefits that arise from the transfer of an athlete, with an initial investment starting from 1 euro.
Through the blockchain they discovered that it was possible to democratize people’s access to the lucrative market of player transfers and transfers and, at the same time, “help train new talent through seed club funding,” the founders explain. To achieve this goal They make use of training fees that clubs have to collect every time a player who comes out of their underdogs makes a new pass.
“Through digitization we divide these rights into many parts so that everyone can become the owner of one of them,” explained Busnadiego.
Technically WIN grants a loan to those clubs, and anticipates that future pass fund flow, which the club doesn’t know when it will receive it or how much it will be. This loan is granted based on the capital raised from the sale of the tokens. For clubs, the advantage is that these loans are repaid only when the pass takes place.
For the investor, business occurs when the value of the pass is higher than the one taken when acquiring the token. “The WIN token promises to return the investment that has been calculated at the current value of the player, with the proportional increase that comes from the transfer of money to the new club”, explain the founders of the startup.
The investor does not necessarily have to wait for the transfer of the player, he can sell his share in advance and take advantage of the opportunities that exist in his listing. AND similar to a stock exchange, but this follows the logic of the market valuations of the players.
How can people invest? By purchasing the tokens issued on the WIN Investments platform. You can invest in the shares of the 5% that the training clubs of already consecrated players have according to FIFA regulations.
Who can invest? Anyone from anywhere in the world, by completing a registration, in which they must validate their identity.
What asset class are users investing in? People invest in a footballer’s next pass. That is, when you buy the token, you are buying a portion of the rights the club has to the next transfer of players it has trained.
Is there a maximum investment? No investor can acquire tokens exceeding 10% of the total value of the tokenization launched on the market.
How much can such an investment pay off? The yield of the tokens is linked to the player’s performance and to the vicissitudes of his career, his team and also the market in which he operates. “As a reference, it is only worth counterfactual: what if it was possible to buy tokens before the World Cup from the main figures of the Argentina national team?
What happens if the player is injured or sold for less than the purchased token? If the player transfers without an active contract, there is no associated pass and therefore no solidarity mechanisms exist. The token “stays alive” and waiting for the next transfer to be onerous, implying a price for the pass. This will activate the solidarity mechanism promised by the token.
If the Player retires, it may be due to age, an injury or a personal decision, the token is destroyed, implying the cancellation of the loan that the club owed to WIN. Investors lose a large part of their investment but There are mechanisms that WIN has designed to mitigate this situation.
In the cases of loan players FIFA indicates that the obligation to pay the solidarity mechanism applies. In these cases the token pays what it is due but does not expire, i.e. it remains active and ceases to be valid only when a transfer with quota is made or the player withdraws.
The startup will start with the passes of five players of Comodoro Rivadavia’s CAI (from which Sergio “Chiquito” Romero, Kuki Silvera and Pitu Barrientos came) and the secondary market will open in May.
In March it will be possible to acquire shares of the passes of a group of players of the Italian Audax, from Chile. This year there will be 10 clubs at the rate of 1 per month before, and two per month from July. Approximately 100 players will be listed.
Source: Clarin
