For Clubs & Athletes

Access to capital without the intermediaries

For Clubs & Athletes

Raise Funding:
Private Placements or Public STOs

The use of DLT technology and smart contract automation enabled an unprecedented level of efficiency when raising funds (debt or equity) via public or private Security Token Offerings (STOs) of fractional ownership rights to the investors. Essentially, Security Tokens are converted rights to an economic benefit or an asset in the form of a programmable token powered by a self-executing smart contract on a blockchain.

Sports D³ tokenization platform provides sports clubs, leagues and individual athletes with a cheaper, faster and easier way to digitize, securitize and trade fractional ownership rights to their assets: sponsorship contracts, economic benefits of their future performance, etc.

Clubs and athletes looking to initiate a Security Token Offering (STO) on our platform will gain exposure to millions of fans & retail investors (a.k.a. “fan-vestors”), accredited HNWIs and institutional investors around the world, where each and every investor is required to pass the verification of their investor status to ensure compliance of the offering.

By definition, all STOs are subject to the existing securitization legal frameworks to ensure full legal protection of the investors as mandated by the regulator in the applicable jurisdiction, including 28 countries in the European Union, United Kingdom, the United States, Canada, South America, and Asia.

Deloitte Consulting:

“[Token Offerings] can be leveraged by corporates to alternatively finance and “spin-off” business ideas … ]”

“ICOs – The New IPOs? How to fund innovation in the crypto age.” 2017.

Regulatory Compliance:
On a mission to fix the damage of ICO-mania

In 2017-2018 experienced an explosive growth of ICOs. Due to the lack of regulatory oversight from government institutions, such as FCA, ESMA or SEC, a massive proliferation of “utility tokens” and “sports fan coins” took place among the general public. While some of these tokens may serve the marketing purpose to improve loyalty and engagement of sports fans, none of them represent a true financial instrument or investment vehicle as defined by the securities law.

Unfortunately, with a lack of oversight and driven by hype these “utility token” projects have received inflated valuations, that were not justified by their underlying business models, … and many of them turned out to be a pure fraud or exit scam. In fact, the study conducted by two researchers from Boston College, Hugo Benedetti and Leonard Kostovetsky, revealed that 81% of ICOs were scams.

Sports D³ is determined to fix the broken ICO fundraising model! By focusing only on regulatory compliant financial instruments (e.g. debt, equity or derivatives) and applying traditional business logic & valuation techniques, we assist clubs and athletes to successfully raise funds via Security Token Offerings (STOs).

81%+

of ICOs in 2018
were scams

World Economic Forum:

“10% of global gross domestic product (GDP) will be stored on blockchain technology by 2027”

“Deep Shift Technology Tipping Points and Societal Impact”. September 2015.”

Our Expertise

Sports D³ was founded by graduates from one of the worlds top-ranking Executive MBA programs. Our growing team is staffed with seasoned executives with  15+ years of experience on average. We will help you navigate through all the preparatory stages for a Security Token Offering across the following four areas of expertise:

STO Strategy Review & Advisory

Launching a public STO is a major milestone. During the Discovery Phase of our process, we work with a club’s management team or an individual athlete to determine the fundraising objectives and evaluate alternatives in the Private Markets.

 

While proper planning and execution of an STO offering take 4-6 months, we will work closely with you to conduct due diligence and valuations to determine the best strategy for the offering, identify price scenarios, test market conditions and identify capital raising potential.

Blockchain & Smart Contracts

Our development teams with competency in DLT technology are located in Ukraine, Belarus, Slovakia, India and will work in the background so that you are able to focus on what you do best: the game!

 

They are able to address your unique requirements, develop custom implementations ranging in complexity from simple token creation to pre-programmed self-executing dividend distributions, to instant voting referendums powered by smart contracts.

Legal & Regulatory

We will collaborate with the club’s management team or an athlete to conduct a legal assessment of the project. On your behalf, our advisory team and trusted legal partner(s) in the jurisdiction(s) of the Offering will facilitate the process of preparing legal documentation for the Security Token Offering and filing with the Regulator(s).

 

Our current and planned support covers the following types of securities offerings:

 

  • Crowdfunding with a fundraising target of up to €8 million ($1 mil. Reg. CF in the US)
  • Private Placement targeting accredited investors & HNW individuals (Reg. D in the US)
  • “Mini-IPO”  to raise up to $50 million from the general public (Reg. A+ in the USA)
  • Reg. S offering outside the United States and excluding the U.S. persons

STO Marketing & Solicitation

Marketing a securities offering is subject to financial industry promotion regime established by the regulator and must be complied with. On your behalf, we will design the best marketing strategy, develop key marketing points for the token offering, and create investor kit for the roadshow.

 

For your token sale to get traction with sophisticated/accredited and institutional investors, we will leverage our database of investors who registered on Sports D³ platform. We will deploy cost-efficient tool and techniques: including digital marketing, SEO & re-targeting, email list advertising, targeted PPC, Social Media, digital & traditional PR, retain influencers, carry out community management, attend industry events and more to help your STO achieve fundraising target.

Kevin O’Leary:

“Asset-based coins and ICOs will eventually replace small-cap stocks and IPOs”

CNBC interview. March 19, 2018.

Our Process

Every club or athlete has its own background, its own circumstances, and its own story. While we understand that with every new client and every new business case there is a unique set of custom requirements, Sports D³ has developed a standardized process to prepare a client for a successful STO offering.  Our process includes the following 6 steps.

01. 

Discovery
Phase

Interviews and exploratory discussions with the sports club’s management team or an individual athlete about the offering size and structure. Understanding the client’s needs and objectives. Consolidation and aggregation of findings. Definition of project requirements and scope of work.

02. 

Analyze
Findings

Analysis of findings. Detailed business, financial & legal due diligence, evaluation of market conditions. Sports club or athlete entity and beneficiary KYC/AML clearance. Valuation & pricing discussions with the client. Gauging preliminary investor interest to subscribe to the offering.

03. 

Prepare
Offering

A collaboration between sports club’s team Sports D³ to build strategy and prepare the offering, including the development of project roadmap, timeline and costs for legal, technology and marketing stages of the offering.

04. 

Securitize
Assets

Preparation of legal documentation and filing with the regulator(s). Drafting Investor Prospectus or Private Placement Memorandum as mandated by the regulatory framework in the applicable jurisdiction(s).

05. 

Tokenize
Assets

Work with Sports D³ technology team to identify technical parameters for the token emission based on the business requirements of the offering. Develop custom smart contracts, issue tokens, test and deploy on the blockchain in preparation for an STO.

06. 

Launch
STO

Develop a roadshow presentation with key marketing points of the offering, launch marketing campaign to support the offering via general solicitation in the media and industry events or targeted presentations and to the list of accredited & institutional investors. Final settlement of the account.

EY:

“In our latest ‘The DNA of the CFO’ study, 58% of the finance leaders identified “digital” as one of the four forces disrupting the CFO role. Blockchain technology is a significant component of this digital trend; it is one of the most fascinating and impactful digital disruptions shaking up the finance function.”

“Blockchain: How this technology could impact the CFO.” 10 October 2018.

Our Pricing

Smart Sherpas Advisory pricing model has attributes of the traditional investment banking fee structure with two layers:

  • a non-refundable flat fee consulting retainer, and
  • a percentage success fee dependent on the size of the transaction, type of capital raised and overall complexity of the offering.

Get Started

Ready to start a conversation with our team or want to schedule a demo of the platform? Send us a quick message and we’ll reach out to you to set up a meeting.

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