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English football club Watford FC is offering fans across the world to own a piece of the club by selling shares in the form of digital tokens.
Numerous organizations like Watford FC are beginning to see the benefits of raising funds via crypto tokens to reach “a far broader range of investors” — something not possible via traditional stock market issuance, which is geographically restricted.
In this article, we explain why Watford FC is selling its stake via digital tokens and whether you are eligible to buy Watford FC tokens.
Watford FC Offers Digital Equity to Global Fans
On June 4, 2024, Watford FC announced that it is looking to raise GBP17.5 million ($22.38 million) by selling a 10% stake in the club. The club is valued at GBP175 million.
The ‘Hornets’ are offering class B non-voting ordinary shares to investors, who will have the option to receive their shares in digital tokens.
Shares are priced at GBP12.44 ($15.88) per unit and will come with a lock-up period of 12 months. Investment platforms Republic and Seedrs will facilitate the sales.
The minimum investment amount is four shares totaling GBP49.76 on Seedrs and eight shares totaling GBP99.52 on Republic.
Watford FC, which will compete in England’s second-division football league in the 2024-2025 season, said the funds will primarily be used to recruit players and coaching staff.
“Part of the funding will be channeled into recruitment to strengthen Tom Cleverley’s (head coach) playing squad as we seek a return to the Premier League,” said Watford FC.
Investors do not need to own cryptocurrencies to buy Watford FC digital equity tokens.
Watford FC said the club plans to facilitate future trading of equity tokens on a regulated secondary market in the future.
Equity tokens will be held in custodial accounts managed by Brassica Trust Company LLC.
There are two ways to buy Watford FC equity tokens, depending on where you are based.
UK-based Investors
If you are based in the UK, Watford FC shares can be purchased through the Seedrs platform.
As of June 6, 2024, the official Seedrs website only allowed investors to “get priority access.”
To join the priority list for early investment access, you must sign up for Seedrs and submit your name and country of residence.
You will also have to mention the amount you are considering to invest.
As mentioned earlier, the minimum investment amount on Seedrs is four shares, totaling £49.76.
Non-UK-based Investors
Global investors based in the U.S., EU, and 150 other countries can invest in Watford FC via the Republic platform.
As of June 5, 2024, the official Republic website allowed investors to pay a “reservation amount” to “ensure you can invest when Watford FC starts the offering.”
The minimum reservation amount was USD127.59, payable via debit and credit card.
Republic is charging investors an administration fee of 2.5% on the total investment amount.
Terms and conditions for Watford FC investment on Republic indicate that investors will have the option to pay for their investments in ERC-20 tokens USDC and USDT.
Who is Eligible to Invest in Watford FC?
According to Republic, global investors must be verified as “accredited investors” as defined by the U.S. Securities and Exchange Commission (SEC) to be eligible to invest in Watford FC.
You are considered as an accredited investor if you are an individual with:
- Annual income over $200K individually or $300K with a spouse or spousal equivalent in each of the last two years and expect to make at least $200K individually or $300K with a spouse or spousal equivalent during the current financial year.
- Own net assets over $1 million, excluding your primary residence
- Professional investor holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82).
- Professional investor holding professional certifications or designations.
Investors will have to upload:
- Tax returns, W-2s, or K-1s forms for income verification.
- Bank, investment, or brokerage account showing assets greater than $1 million for net worth verification.
- A letter from your accountant, lawyer, or registered investment advisor verifying you are accredited under Reg D Rule 501.
Is Watford FC Digital Equity Tokens a Fan Token?
No, Watford FC’s digital equity tokens are not fan tokens.
The digital equity tokens issued by Watford FC offer ownership of the club, which is not the case with fan tokens and non-fungible tokens (NFTs) issued by European football clubs Barcelona, AC Milan, Manchester City, and Arsenal on blockchain network Chiliz (CHZ).
Fan tokens do not represent equity shares in sports organizations. These tokens only offer perks and exclusive benefits in the form of experiences, merchandise and rewards.
About Watford FC
If you are interested in investing in Watford FC, here are some fun facts about the football club.
- Watford FC was established in 1881. The club is based in Watford, Hertfordshire in England.
- Watford FC is owned by Italian businessman Gino Pozzo. The Pozzo family also own the Italian club Udinese.
- The Hornets last played in the English Premier League — England’s top football division — in the 2021-2022 season.
- According to Republic, the club posted pre-tax profit of GBP24.1 million in the 2022-2023 season — the highest ever at the Championship level.
- Sports news website The Athletic reported in May 2024 that two-time heavyweight champion boxer Anthony Joshua held talks with Watford FC for a potential investment.
- Lifelong Watford supporter Sir Elton John owned the club in the 1980s.
The Bottom Line
Football is arguably the biggest and the most universal sport of all. It is fitting to see football and token technology combine to allow fans from all across the world to own a small piece of an iconic football club like Watford FC.
Sports fans from the Americas to Asia will eagerly wait for their favorite sports teams to offer them such ownership opportunities. It is wonderful to see blockchain and cryptocurrency technology used to break down geographical barriers.
