BALD BANKER

No, I’m not advocating for human trafficking

Every once in a while, my mind starts wandering and stumbles across wacky ideas. The question for the day is – Do you have any idea how rewarding owning a thumb of Kylian Mbappe be?

Let’s talk about Tokenization and Fractional ownership of art work, marquee real estate, and other previously uninvestable asset classes. Now, how about fractional “ownership” of football players? They’re essentially assets of their respective clubs. Check out some returns below.

The idea of course faces a major challenge. Fractional ownership of course works for assets which have “perpetual value”. Football players as we all know have finite careers, and thereby their value erodes to zero over time.

How about invest in the squad of a club? That’s perpetual right? Check out this table below

These returns are potentially achievable in betting markets(?) The value of a squad likely fluctuates with the team’s performance which can be betted on. To make that more clear, unexpected results (both positive and negative) impacts a team’s value the most.

A few explanations:

  • Schalke 04’s recent demotion to the tier 2 of Bundesliga
  • Barcelona’s dream team no longer exists, they are left with many expensive under performers
  • Real Madrid has always maintained a squad with marquee names. Intuitively, I would say their present squad is in no way as “Galactico” as the one 10 years back. The increase in value might entirely be attributable to inflation in the transfer markets.
  • Leeds’ and Leicester were promoted from the Championship to the PL during this period. Brentford FC won a double promotion from League One

Data Sources: Transfermakrt, CIES Football Observatory

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