Can you explain a little bit more about why your platform will be more transparent than current financing in sports?
Hi Crypto Tanya, thanks for the question.
Current financing in sport is not transparent at all. Top 10 (or maybe 15) biggest sports agencies control the good majority of the market. While we believe that the major advantage of SportyFi is not so much in full transparency (while SportyFi platform will be fully transparent as it will run on open sourced platform of Ethereum, this might not be the biggest added value at all), but in the ability to interconnect athletes, clubs and other sports organizations on one side, with fans and other sport enthusiasts (small investor). It will be the first crowd-micro financing platform in sports and thus constituting a completely new sub-industry.
As Vitalik said in his interview with Naval Ravikant (at TechCrunch), one of the best applications of Ethereum platform is exactly in crowdfunding (you can watch the entire interview titled Decentralizing Everything here:
https://www.youtube.com/watch?v=9CBrVXjDNBU, while the relevant part is somewhere from minute 8 onward).
Current financing in sports (from an athlete's perspective) works somehow like this: (i) you have to be extremely talented, (ii) you (or your parents) need to know the right people and (iii) you need to have a tremendous amount of luck. Having just item (i) above, is almost never enough. While talent should be the only important measure, it almost never is. Which is why many talented athletes have to cancel their careers due to luck of funding.
Current financing in sports (from fan's or small investor's perspective) works somehow like this: you cannot participate.
SportyFi will create a platform where the above participants (e.g. athletes on one side and small investors on the other) will be able to "meet". Naturally, also athletes campaigning on the SportyFi platform will have to convince their future "investors" with their talent, while SportyFi will completely eliminate item (ii) above (regardless of who you know, you will be able to participate on SportyFi platform), while item (iii) will surely still be present (as in any matter in life, but surely it will be less important).
What is also important to mention in regard to SportyFi Platform (transparency-wise) is that the options that are currently available (and that will be available in the future with the development of blockchain technology) are limitless, e.g. the funds raised by an athlete can be put on escrow and released in tranches, while investors might perform a DAO voting whether an athlete adequately performed in the previous period, while the next tranche will be released only in case the investors will confirm the release (otherwise, in case of under-performance of an athlete, the funds will be returned to the investors, etc).
To sum up, SportyFi will:
- be a fully transparent ecosystem, run on Ethereum open source platform, with clear rules and everybody will be able to check how the funds are raised, how much each athlete (club,...) raised, while it will also be possible to monitor how the funds are being spent; and
- introduce a completely new crowd micro-financing sub-industry, which was not possible and available before the advent of blockchain.