Chiliz, the blockchain platform for sports and entertainment, has launched a new decentralized finance (DeFi) protocol aimed at solving cash flow problems for football clubs. The system allows clubs to tokenize future revenue streams, such as broadcasting rights, and use them as collateral to secure stablecoin loans, providing faster access to capital without relying on traditional banks or high-fee specialized funds.
The protocol will launch with an initial liquidity pool of $1 million in USDC stablecoin. Investors supplying capital to these decentralized pools are anticipated to receive an annual percentage yield (APY) of around 12%, subject to a 90-day lock-up period. This initiative, described as a shift from concept to practical utility in the "SportFi" sector, targets the core financial operations of sports organizations rather than just fan engagement.
Alex Dreyfus, founder of Chiliz, emphasized that this represents a move to use blockchain infrastructure to finance the actual mechanics of the sports economy. While the tokenization of real-world assets is not new, its application to sports revenue streams is seen as a natural fit, potentially offering clubs improved settlement times and greater transparency. The success of the model will depend on execution and how clubs manage associated risks, such as crypto market volatility and revenue projection shortfalls.
