11th January 2023
Mobile Streams plc, the AIM quoted mobile content and data intelligence company, is delighted to announce it has signed a 5 year contract with La Liga football club Cadiz to be their exclusive provider of NFT products.
Cádiz Club de Fútbol, S.A.D., known simply as Cadiz, is a Spanish professional football club based in Cádiz, Andalusia. Founded in 1910, the Club competes in Spain's top tier football league La Liga. Last year the club also reached the quarter finals of the Copa del Rey, Spain's top cup competition.
This first partnership with a La Liga club marks an important step in the Company's strategy of expanding and solidifying its "HeroesNFTclub" brand as a top licensed provider of sporting digital merchandise. La Liga is one the world's top sporting leagues. The Company is actively engaged in progressing further NFT deals globally and announcements on these will be made when appropriate.
Non-Fungible Tokens ("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. An example would be a sports trading card - NFTs produced under this contract are one-of-a-kind trading cards. If you traded it for a different card, you'd have something completely different.
The global NFT market is expected to reach $122 billion in size by 2028, with more than $17 billion in sales in 2021 and $35 Billion expected to be generated this year. (Source: The Global Non-Fungible Tokens (NFTs) Market is expected to (globenewswire.com))
MOS intends to produce a large range of NFTs for Cadiz. NFTs will be sold via a primary marketplace that MOS is creating for the club which can be accessed via the team digital touch points, such as the Cadiz website and social media accounts. Additionally, the NFTs will be sold via MOS's telco contracts globally, its LiveScores sites and Apps and the MOSMetaverse website. They will be marketed not only by the Cadiz site, but also online across the world to fans globally.
Under the terms of the Agreement, the parties have agreed a target revenue figure over the 5 years of the contract of which MOS's share is approximately €3,7m as per the revenue-share arrangement. This net figure, which is a target agreed between MOS and Cadiz and not a forecast or guidance as to what will actually be achieved. 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 5-10% of the sale price.
The Agreement also requires MOS to make an initial cash payment to Cadiz, which is well covered by the Group's existing cash and cash equivalents, and if certain revenue targets in a year are met then a minimum revenue guarantee would exist for the next year. However, in the context of the revenue that MOS would receive for this to be activated, the Board considers these would be modest and achievable from within the next year's revenue that MOS expects to receive from the contract. The Board further believes that, noting the expected recurring nature of NFT royalty revenues], it estimates that its maximum net exposure, under all but the most extreme worst case commercial assumptions, including the upfront cash fee, would be approximately €100,000 over the first 3 years of the Agreement. The Agreement contains a 3-year break clause and standard terms for termination.
Mark Epstein, CEO Mobile Streams plc, said:
"We are delighted to have signed this contract with Cadiz. They are a hugely popular team with a great fan base. It's a privilege to be working with such a great club as our first in La Liga"
Enrique Pérez, Director Cadiz, said:
"We are very pleased to be partnering with Mobile Streams for our NFT's. We can't wait to deliver a new generation of digital merchandise to our fans. Products that drive engagement and participation with the team, along with additional revenue for the club. We look forward to a long and successful partnership."