Thread by @PlaymakerChiliz

Did you hear about the massive €100m deal between .@FCBarcelona and .@Chiliz x .@socios ⚡️ $CHZ?

The deal from the perspective of all parties involved. 🧵

1/23

If you missed the deal or want to catch up with the details, read this, and then let's go! 😉

2/23

decrypt.co/106373/crypto-…

🟥🟦 FC Barcelona

Barca receives capital to build their team and reorganize the club's finances.

They also get top expertise for their #web3 expansion.

The deal comes as a surprise, as in March this year tones from Barcelona sounded different:

3/23

coindesk.com/business/2022/…

What has changed since then?

▪️ Financial needs combined with an offer you can't refuse?
▪️ Positive experience of cooperation over the last 2 years?
▪️ Realization that new expertise is needed for Web3 plans?

A mix of all? Either way, deal is done - let's look forward.🙂

4/23

Barca is primarily a football club and would have to build up much expertise to be best in class in #web3.

They took a short-cut by getting Chiliz x Socios aboard with their network, tech & know-how.

Both parties know each other since they launched the $BAR Fan Token.

5/23

But this deal, of course, is much more now.

Both parties committed to jointly develop the full Web3 experience for 400m Barca Fans.

This includes #NFTs, #Metaverse and more.

Barca gets a lot of cash, but also a strong partner for the future.

Deal for Barca = 🟢

6/23

🟦🟥 Barca Fans

Barca fans live all over the world. Many can not go to the stadium or otherwise actively participate.

For them, web3 will be a whole new and more active product experience, it already started with #fantoken.

Much more stuff will follow.

7/23

Fans still discuss if they really want this world, but let's leave this discussion aside here today.

Let's assume fans will want these experiences over time and new tech needs time to be adopted.

This new world is still wip, but foundations are being layed today.

8/23

We've seen many crypto x sports deals 2020-22, some clubs had 2-3 different crypto partners.

Barca fans will now have the benefit of likely experiencing most/all of their club's Web3 products on one blockchain.

This makes things a lot easier to adopt for fans.

9/23

Barca Fans will also be able to explore Web3 in a safe way, as Chiliz operates a PoSA chain.

IMO these topics are key to onboard the masses. It has to be easy, safe ... hopefully fun/useful.

IMO, the deal makes it easy for fans to adopt. Thus:

Deal for Barca Fans = 🟢

10/23

🟦🟦 Socios

This deal sends the message that Socios is still hungry to expand the scope of its platform.

Let's remember how Socios started:

$PSG and $JUV signed the first fan token deals & +150 clubs followed.

All the clubs signed finite contracts. $BAR is one of them.

11/23

This deal now safeguards that $BAR will stay in this ecosystem.

This could, again, also have a signalling effect for other clubs.

Moreover, the deal probably expands the utility of $BAR in the broader sports ecosystem on CC2.

Deal for Socios = 🟢

12/23

🟥🟥 Chiliz

I would not underestimate the time of this happening a few months before Chiliz Chain 2.0 mainnet launch.

Basically, the sports world hears the message:

FC Barcelona fully commits to Chiliz Blockchain.

This helps to build the narrative: Sports = Chiliz

13/23

Barca will be one of the cornerstones of the CC2 ecosystem now - the blueprint use case.

Read my 🧵 about why I think specialized blockchains do have a chance to stand the test of time.

This move is another step in the direction I describe:

https://twitter.com/PlaymakerChiliz/status/1511279134969942017

14/23

Also, in terms of users on the chain, only fractions of 400m Barca Fans can bring a lot of activity over time.

It might not be tommorrow, not next week, not next month - but think in quarters and years.

More users, transactions, fees = utility for $CHZ token.

15/23

For Chiliz right now, months ahead of mainnet launch, this clearly is a prestige win too.

Could there be more deals like this?

Time will tell - remember, CC2 is supposed to be the sports destination #1.

Deal for Chiliz = 🟢

16/23

https://twitter.com/alex_dreyfus/status/1554519216627322881

🟩🟥 $CHZ Investors

$CHZ was up on the news a lot. But there is of course one question to ask.

How will the deal be financed? There are currently $CHZ tokens worth $400m in the CHZ Treasury.

If the deal is to be financed w/ $CHZ now, it would mean sell pressure.

17/23

Yet it makes no sense to sell 25% of your tokens at the lows now.

For a deal of €100m this will be carefully sorted out w/ advisors/banks to structure this properly.

Parties might have agreed on payment in installments and/or Chiliz restructured their obligation.

18/23

Or are the companies cash reserves even that strong?

Chiliz Labs will also be funded w/ $50m and Chiliz x Socios still open offices / hire people.

Fishing in the dark here w/o more information tbh.

I'd still expect some selling once the markets show real strength.

19/23

$CHZ treasury is the investment reserve to build this ecosystem, so selling them should not be a surprise.

These investments, should long term hopefully benefit the ecosystem - hence the price of $CHZ again.

Deal for $CHZ investors = 🟡 (Short/Mid Term) 🟢 (Long term)

20/23

IMO the deal has not only been one of the major deals of this bear market, but one of the biggest deals for #crypto x #sports adoption.

.@FCBarcelona, the most valuable football club 2021 as per .@Forbes, has now fully committed to enter #web3 w/ a crypto native company.

21/23

Although things can always go wrong and this is a lot of money, IMO this is a very positive move.

I am curious how this partnership will play out in real products, real adoption and real value for fans.

What do you think about it? Let me know! 👇

22/23

I'll continue to observe all developments not only of this deal, but of this ecosystem.

If you liked this 🧵 and appreciate the time I put into writing it, please RT the 1st Tweet up there and make sure more people can read it. 😉

Thx for your support, have a good one.🙂

23/23