Libereum, a Dutch cryptocurrency company announced on December 26 that they have purchased Elche CF, a Spanish football club. The company made a down payment of €4.3 million (about $4.9 million) for the club and has made plans to sell tickets, players, and accept sponsorship using its digital currency, Liber.
Process Reviewed to Reduce Risks to an Acceptable Level
The Dutch company revealed that risks analyses had been carried out before the said club was purchased. In their own words, they had thoroughly reviewed Elche CF and so far, the auditing results were positive. Also, the process before the acquisition of the company was well thought out.
Elche CF, the purchased club was founded in 1923. This is a club that has played with Real Madrid and Barcelona in the past in the Primera Division. However, due to the club’s inability to pay taxes, it was relegated. Libereum has, therefore, said plans have been made to restore the club in the Primera Division after 2 to 3 seasons.
Investing Financially in Elche CF to Restore it to Primera Division
Furthermore, the report states that the company wants to restore Elche CF to the Primera Division by investing financially into the club. This will be made possible through the funds that will be raised from the sales of tickets using Libel. Moreover, sponsorship deals and team member transfers will be paid for using this cryptocurrency.
According to Liberium, when transactions are made using Libel, it will help to drive up its price and thus, increase its value. This can be attributed to the fact that they are merging the digital currency with the most popular sport in the world. This will, in turn, provide the necessary funds they need to buy other clubs which has been the company’s plan since its inception.
Liberium Had Planned on Buying a Club Worth €80 million
Prior to this development, the company had announced that they plan on acquiring a football club worth €80 million. A media outlet also reported that they were about to purchase a Roda JC Kerkrade of the Netherlands, which did not go as planned. Nevertheless, Liberium believes that Liber can become one of the top 10 cryptocurrencies after the purchase of its first soccer club.
In a recent report on December 18, BTCNN revealed that Atletico Mineiro, a Brazilian football club also intends developing its own cryptocurrency. This digital asset will then be used by fans to purchase game tickets, jerseys, and services provided by the club. This makes the club one of the first in Latin America to have adopted this method of payment.