A Portuguese football club— Sporting, has made it known that it has plans to conduct an ICO as a way to raise fund and pay its staggering debts.
Raising Money With ICO
The vice-president of the club, Dinheiro Vivo, reportedly made it known that the club’s association is currently looking into ways through which it can raise funds for the club.
He stated that:
“We are looking closely at an ICO. We’re having meetings about it. There is a great value potential in the Sporting brand.”
According to the Club’s manager, the club is already shifting toward conducting an ICO. He further stressed that it is quite “important for the club to take advantage of this “new world”(ICO).”
The manager then emphasized that the club’s goal would be to “take advantage of this new world, ” making reference to the booming cryptocurrency industry.
According to him, the club’s main aim is to take advantage of the digital currency ecosystem.
Based on a recent report, Sporting has completed a bond issue in which it’s offering investors a 5.25% gross annual interest rate to raise €30 million ($34.2 million).
Sporting Needs Money Badly
This is a clear sign that the club is in need of massive funding, in order to offset its many bills. According to a previous report, Sporting has another bond issue that’s maturing on November 26.
In anticipation of the maturing bond, the club has been able to see subscription orders increase significantly following its massive promotion. However, the club was not able to meet its target. It ended up raising only €26 million ($29.6 million).
Experts on the subject have made it known that, if a club like sporting issues a token sales, the tokens can then be used to buy products or services at a discount. However, sporting is still yet to reveal its full plans as regards this.
According to a notice issued by the nation’s Securities Market Commission (CMVM), any organizations planning to issue an Initial Coin Offerings (ICO) is required to make known and defend the judicial nature of the tokens that are being issued.