Leeds United and Everton are both facing scrutiny for their commercial practices.
Leeds and Everton both benefit from large, enthusiastic fanbases, making them among the best supported clubs in the country.
Sell-outs at Elland Road and Goodison Park provide both a financial boost and commercial benefits for their respective brands.
Sponsors want to associate themselves with the greatest and most historic clubs, and Everton and Leeds certainly fit the bill.
Everton’s commercial income in 2022-23, the most recent year for which financial data is available, was £39 million, but it had previously been as high as £76 million, and Leeds was £48 million.
The most significant individual cash generators are their front-of-shirt, sleeve, and kit manufacturer deals, but both teams have diverse sponsorship portfolios across multiple categories.
Now, the two clubs are being scrutinized for one of their more contentious partnerships.
Leeds and Everton’s fan token agreements
Leeds became the latest team to join with Socios, a startup that trades blockchain-backed digital tokens and offers a platform for fan involvement and rewards.
Everton had just announced a collaboration with the same company, which was launched in 2018 and is based in Malta.
Both teams’ supporters trusts have raised concern about these arrangements, which some detractors say are uncontrolled and pose a financial risk, as with any investment.
Everton and Leeds fans tokens were valued £2 each when they originally started selling, but according to financial journalist Martin Calladine via X, they are now worth only £0.75 and £0.14, respectively.
The overall market capitalization of both tokens has plummeted and now stands at roughly £4.4 million.
Everton and Leeds are far from the only clubs to have partnered with fan token firms.
Indeed, Calladine noted that the value of every other token backed by English clubs, including Manchester City, Tottenham, Arsenal, Aston Villa, and Crystal Palace, had fallen below its pre-sale price.
TBR Analysis: Following Leeds-Everton, what is the future of fan token sponsorship?
Many studies suggest that cryptocurrencies, Web3, and other digital platforms will be the next big thing in sports sponsorship.
One company, CLV Group, estimates there are hundreds of millions of dollars in untapped revenue for European clubs in this market.
Everton and Leeds, two of England’s most popular clubs, are well-positioned to capitalize.
They should, however, do so with responsibility and concern for the well-being of their fans.
