A Brazilian soccer team is looking to raise $20 million by launching its own initial coin offering (ICO).
The Avaí Futebol Clube, a Series B soccer team, announced Wednesday that it was generating its own cryptocurrency as part of an effort to develop a digital ecosystem for its fans, help it qualify for the top tier (Series A) of Brazilian soccer and the prestigious Copa Libertadores competition and to build up the team's physical infrastructure.
reported that the club will sell 20.46 million tokens at $1 each. The club will hold onto another 1.54 million tokens, or roughly 7 percent of the total tokens being generated.
The team is working with SportyCo and Blackbridge Sports to develop and launch the token sale, which will begin on October 3.
Avaí president Francisco José Battistotti said in a statement that the ICO is targeting a "global football fan base," adding:
Investors who purchase the token will be able to trade on exchanges or purchase tickets, merchandise or other "unique experiences," SportyCo co-founder Marko Filej said.
Avaí plans to raise $8 million at a minimum. If the club does not meet this threshold, all funds will be returned. If it raises between $8 million and $20 million, but falls shy of its upper goal, the unsold tokens will be burned, according to the report.
The team joins French club Paris Saint-Germain, which announced Tuesday that it was also planning to issue a cryptocurrency as an incentive mechanism for its fans.
However, the PSG token will not have a monetary role. Instead, the token will help fans vote on team decisions such as jerseys, as previously reported.
Soccer ball image via Shutterstock