Reims joins forces with Royaltiz, the CAC 40 of football

Next season, Stade de Reims will introduce a new sponsor on its shirt: the “Royaltiz” platform, which allows you to invest in the careers of talents (football, tennis, rugby, fighting, as well as artists). An extended partnership, as the club will offer its fans the conditions to invest in its players, professionals or hopes.

Scholarship for players: how does it work?

Royaltiz signs contracts with players that become securities or shares called “Roys”. There are currently eighty talents on the platform, with plans to reach 130 to 150 talents by the end of the year. To accelerate signatures, the startup has raised funds in the amount of 6 million euros. A new business that attracts the players themselves. Aurelien Chuameni, in particular, invested a six-figure sum.

On the part of fans, 15 euros is enough to open a wallet, and shares of new talents are put on the market at 2 euros. Their value then changes according to supply and demand, sometimes dramatically. Roy de Griege Mbok, selected at the end of 2021, has increased by +1,500% since the start of Women’s Euro 2022, the semi-final of which the Blues will play against Germany this Wednesday.

Another Sorare model

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

Another difference: access to investment. Where Sorare imposes a portfolio in the cryptocurrency Ether (ETH), shaken by the market collapse in May-June, Royaltiz allows you to invest in euros.

Not to limit its offering to just trading, Royaltiz has also established an annual dividend system based on the talent’s real sporting performance as well as their popularity on social media. 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,” explains Aymeric Granet.

Small 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 (“economy of passion”, developed by the Anglo-Saxons). He makes small bets on several players and for a long time. On the other hand, there is an ultra-specialist who sees this as a source of income.

But a big win is beyond the power of the first. It requires significant investment, deep knowledge (trade, football data, social media world) and a lot of time to follow players and results. Only a few insiders manage to exceed 2,000 euros in monthly income.

The shadow of sports betting

With sports betting sites accused of picking on young people, particularly in working-class areas, the difference between match betting and career betting can seem small, along with the risk of debt and addiction.

Royaltiz talks about “smart enthusiasm” on its platform and adds statistics to the semantics: its users invest on average in only three talents for an average portfolio amount of 150 euros. A 5% cap on Roys acquisitions when introducing new talent was also introduced to avoid frenetic trading and unwarranted investment.

Reims, a golden partnership for Royaltiz

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