Reims merges with Royalties, CAC 40 football club

The Stade de Reims will feature a new sponsor on its jersey next season: the Royaltiz platform, which allows investment in talent careers (football, tennis, rugby, fighting, as well as artists). An extended partnership as the club will offer its fans the opportunity to invest in their players, professionals or challengers.

Scholarship for players: how does it work?

Royalties sign contracts with players, which become securities or shares called “Royce”. There are currently eighty people registered on the platform, whose goal is to reach between 130 and 150 talents by the end of the year. To speed up the signings, the startup raised funds in the amount of 6 million euros. A new business that attracts the players themselves. In particular, Aurélien Chouameni invested a six-figure sum.

From the side of the fan, 15 euros is enough to open a wallet, and shares of new talents are put on the market at 2 euros. Then their value changes depending on supply and demand, sometimes dramatically. Roy de Grij Mbock, who was appointed at the end of 2021, is thus up +1500% since the start of Women’s Euro 2022, the semi-final of which the Blues play this Wednesday against Germany.

Other Sorare model

Unlike Sorare, the French NFT card giant, which denies being an investment game, Royaltiz takes on this activity, which is not (yet) considered by the AMF (Autorité des Marchés Financiers) as a financial product. Aymeric Granet, its managing director, emphasizes that “Sorare is not a competitor and talent can also be present in both offerings.”

Another difference: access to investments. Where Sorare imposes a portfolio in the Ether (ETH) cryptocurrency, shocked by the market crash in May-June, Royaltiz allows investing in euros.

In order not to limit its offer to just trading, Royaltiz has also set up an annual dividend system based on the real sports performance of the talents as well as their social media popularity. Two criteria determine the yield index in the range from 2.3% to 19.5%. “All the data that defines this index is publicly available,” says Aymeric Granet.

Little players and big fish

As in the stock market, there are two types of behavior: on the one hand, the amateur who feels familiar with this ecosystem and finds it fun (the “passion economy” theorized by the Anglo-Saxons). He bets small amounts on several players and for the long term. On the other hand, he is an ultraspecialist who sees this as a source of income.

But winning big is beyond the power of the first comer. It requires significant investment, advanced knowledge (trading, football data, social media world) and a lot of time to follow players and results. Only a handful of insiders manage to generate more than 2,000 euros of income every month.

The shadow of sports betting

With sports betting sites accused of picking out the pockets of young people, especially in working-class neighborhoods, the difference between match betting and career betting may seem insignificant given the risks of debt and addiction.

Royaltiz talks about “reasonable enthusiasm” on its platform and adds a statistic to the semantics: Its users only invest in an average of three talents, with an average portfolio size of €150. A 5% cap was also placed on the acquisition of Roys when bringing in new talent to avoid wild trading and unsound investment.

Reims, golden partnership for Royaltiz

In this context, this partnership signed between Reims and Royaltiz pleases both parties. If this is a new source of income for the club, then it is, above all, a direct connection with the players and supporters of the platform, which represents both its supply and its demand.