The FA is ‘Exploring’ Mining Its NFT Collection

The Football Association is “exploring” the minting of its non-fungible token set (NFT).

Digital holdings, which are validated using blockchain technology, could provide a “significant new revenue stream” for the foundation, according to the FA’s chief executive, Mark Bullingham.

NFTs have become increasingly popular in football in recent months, with the athlete Revealing in March that the Premier League had decided to create a company called ConsenSys for one of its official partners.

A number of football clubs have also released their own NFT kits, including defending champions Manchester City and Liverpool who reached the Champions League final.

For defenders, NFTs are the latest version of sports collectibles, such as trading cards and clothing.

For detractors, they are a vehicle for financial speculation, sometimes changing hands for huge sums of money and possibly exposing fans to risks and losses as early investors make a quick profit.

The FA is now exploring the possibility of launching its own NFTs, but Bullingham insisted the organization would only benefit from the sector “in the right way”.

Speaking at the latest UEFA Congress in Vienna, Bullingham said: “NFTs are definitely something we are definitely exploring. It is a great new source of income for everyone to explore.

“I think it has to be done in the right way and obviously there is a wide range of trading options out there. What we are going to do, we are going to do it in the right way and at the right time.”

Bullingham also discussed the possibility of introducing an independent regulator into English football and said the FA could explore how to change how buyouts (LBO) work for clubs.

LBO is the acquisition of a company by borrowing money against the asset it is about to buy to meet the asking price.

In football, it usually involves investors using the loans they took out for the club to pay the cost of the acquisition, and then asking the newly purchased club to slowly repay those loans. Arguably the most notable example in English football was the debt-ridden Glazer family’s takeover of Manchester United in 2005.

When asked if LBOs could eventually be banned by an independent regulator, Bullingham said: “Yes, I think that’s something that will be explored thoroughly.

I didn’t say get rid of them completely. It is to what extent the buyer has benefited from this.”

(Photo: Eddie Keogh – FA/FA via Getty Images)

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