Flamengo Enters Multi-year Partnership with MoonPay on Web3 Products

Quick take:

• Flamengo will launch a number of Web3 products in partnership with MoonPay.
• MoonPay will boost Flamengo’s fan engagement via ticketing, marketing and merchandise.
• Revenue will be split between Flamengo and MoonPay.

Flamengo, one of the biggest sports clubs in Brazil, today announced that it has entered a multi-year partnership with Web3 infrastructure provider, MoonPay, according to The Block.

In this partnership, Flamengo will launch a number of Web3 products that could include loyalty programs, unique experiences, and complimentary items via MoonPay. The Web3 infrastructure provider will also help boost Flamengo’s fan engagement via ticketing, marketing and merchandise.

“NFTs and web3 technology have helped increase fan engagement and loyalty as well as create new revenue streams worth hundreds of millions of dollars for sports teams around the world,” said Ivan Soto-Wright, co-founder and CEO of MoonPay.

This is MoonPay’s first deal with a sports club. A MoonPay spokesperson told The Block that revenue will be split between the two parties. 

Several football clubs have partnered with Web3 companies to boost fan engagement and expand their Web3 strategy this year as they look for new avenues to connect with their fans during a period of declining revenue. According to the Deloitte Annual Review of Finance, The combined revenue of European clubs declined by £3.4 billion ($3.8 billion) to £22 billion ($24.7 billion).

In May, the Argentine Football Association partnered with Ethernity for NFT drops, and in July entered a multi-year NFT partnership with Sorare.

AC Milan also entered an exclusive multi-year partnership with Sorare in July followed by a multi-year deal in September with MonkeyLeague to launch web3 eSports football. Liverpool FC recently announced that it has extended its partnership with Sorare to collaborate on on multimedia fan content and release new unique experiences for Reds fans and Sorare’s managers.

In August, FC Barcelona accelerated its Web3 strategy with a €100 million investment from Socios.com, granting the NFT company 25% stake in Barca Studios. The Catalonia-based team has identified NFTs and the metaverse as one of the most viable options to help it generate more revenue. Earlier this year, FC Barcelona announced plans for the metaverse and NFTs, as part of Barca Studios’ web3 projects.

According to a report in July, The Premier League is sticking to its plans of launching an NFT collection despite the slump in the Web3 and crypto market. Premier League insiders say that they are exploring low-value NFTs in still images and video formats that are not to be traded for profit. Instead, the NFTs are a way for the League to build a digital community and create interaction between football fans and NFT collectors.

In February, the Premier League shortlisted four blockchains (Sorare, Candy Digital, Dapper Labs and ConsenSys) for an NFT licensing deal worth up to $589 million. ConsenSys won the NFT deal in March while Dapper Labs landed the rights to create video NFTs.

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