A new professional fantasy league for American football that runs entirely on blockchain technology has announced details of its first token offering ahead of its launch in the US next year.
The Crown League, which has been founded by Dan Nissanoff, will be owned by the public and managed by experts. The league is launching the presale of its league security tokens, which aims to raise $30m (€25.6m), in a Reg D SAFT offering to accredited investors and a Reg S SAFT offering to international investors.
The Crown League said that this offering is expected to be followed by one in which the franchises’ security tokens will be sold to the public. The offering is being led by the Americas Executions investment bank.
The Crown League’s inaugural draft is scheduled for next summer, before the first season gets underway in September 2019. Franchise markets, manager appointments and other details will be revealed later this year.
The league will be collectively owned by its franchises, professional management and a dynasty structure that will develop deep player rosters over time. At launch, the league is set to feature 12 inaugural franchises representing key markets in the United States. Franchises will be fractionally-owned by large communities of individuals who will govern their teams and share profits and value appreciation.
Securitised, digital tokens will represent the league and franchises’ financial interests, with teams to compete for their share of a pre-designated allocation of the league’s tokens, and receive distributions based on factors such as winning weekly matchups, achieving predefined statistical benchmarks, and final standings.
Teams will transfer a portion of their earnings to their owners, enabling them to receive a share of any profits generated from traditional sports revenue streams including sponsorships, advertising, merchandising, licensing, event ticket sales and more.
Nissanoff told the CoinDesk website: “We are going to give you access to, as a fantasy enthusiast, and there are tens of millions of them in the United States alone; we are going to give you access to the people playing at the highest level. You can follow the experts.
“We’re going to bring the league to life with events at the national level (such as) the draft. We’re going to bring together groups that share the same financial and emotional interest …At the local level we’re going to have events branded by the teams.”