Industry News

LFE aims for $350m sports ICO

London Football Exchange (LFE), a tokenised football stock exchange, is to launch a cryptocurrency with the aim of giving supporters greater power over ticketing.

LFE said the cryptocurrency will activate a “fan-driven football community” for clubs but will also provide them with an alternative to current ticketing technology that has seen them pay fees ranging from five per cent to eight per cent in commission based on the notional value of tickets sold.

The organisation hopes to raise about $350m in the ICO, with the pre-sale running to February 11. The public sale takes place directly afterwards, from February 12 to May 20.

LFE is a financial, technology, media and entertainment group that allows its members to partake in various club and fan experiences from match day tickets, tours, and player meet-and-greets, to specific merchandise and third-party offers.

Charles Pittar, corporate chief executive of LFE, said: “Our vision is to allow football clubs to take advantage of the token funding economy for their financing needs by providing them with a tokenised financing infrastructure which involves token design and issuance services.”

LFE token holders will be offered special discounts, exclusive offers, rewards and other club and league incentives.

LFE said it is in discussions with more than 50 clubs, including Premier League clubs and teams throughout Europe, USA and Australia.

The Initial Token Offering will generate four billion tokens with 2.4 billion tokens made available for general sale priced at $0.20.

Scott Smith, football chief executive of LFE, said: “The LFE aims to become a “one-stop shop” for clubs of all sizes to raise capital via equity sales and also offer LFE contributors a wealth of fan experiences and social interaction.

“Clubs will be encouraged to offer some equity through the LFE and required to offer a minimum number of unique experiences or special offers so that the real fans can take part in their favourite clubs.”

Image: LFE