4th Jul 2022 14:16
(Alliance News) - Mobile Streams PLC on Monday said it has signed a 5 year contract to be the exclusive global producer and provider of non-fungible tokens for Pumas football club.
Mobile Streams is a London-based mobile content provider. Meanwhile, Club Universidad Nacional AC - Pumas - is one of the "big four" football clubs in Mexico with a fan base primarily based in Mexico and the US.
Wholly-owned subsidiary Streams Data and Pumas have entered into a licence agreement whereby Mobile Streams has the global exclusive right to use Pumas' commercial and IP property for the sole purpose of the production, promotion and commercialisation of NFTs and blockchain products globally.
"NFTs are digital data stored in a blockchain, a form of distributed ledger. The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded. In effect the company's products are digital merchandise," Mobile Streams explained.
Under the contract, the company will produce a large range of NFTs for Pumas including player trading cards, fan engagement products and club collectibles.
Mobile Streams and Pumas have agreed a target revenue figure over the terms of the contract, of which Mobile Streams' share is around USD14.5 million.
Mobile Streams said that revenue from the NFTs will come from both the sale price of the NFT and a royalty generated from them each time they are traded in perpetuity. These royalties are typically between 5% and 10% of the sale price, it added.
The company also said that the NFT market is expected to be worth USD122 billion by 2028, with more than USD35 expected to be generated in this year alone.
The sports NFT market is "the fastest growing sector within this space", it added.
Chief Executive Mark Epstein said: "We are extremely proud to have signed this contract with Pumas. This contract win with a major sports brand demonstrates the progress made by the business. We are now very well positioned within this space and look forward to growing our presence in the Web 3.0 content, digital merchandise and NFT space."
Shares in the company were 1.0% lower at 0.26 pence each in London on Monday afternoon.
By Sophie Rose; [email protected]
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