Liverpool have taken their first step into the digital collectables market with the launch of their own NFT collection.
After assessing the market over the last 12 months, feedback from fan questionnaires and engagement with the Spirit of Shankly supporters group, the Reds have linked up with famous auction house Sotheby's, who have become a market leader in digital artwork and NFTs (non-fungible tokens) for the 'LFC Heroes' Club collection.
The drop will also raise funds for the LFC Foundation and their work in the community, including their education and employability programmes, inclusion and special educational needs and disability support. Half of Liverpool's proceeds from the ‘Legendary’ 1 of 1 auction will go to supporting the LFC Foundation, with an additional 10 per cent from the Reds' limited edition ‘Hero’ sale and 10 pe cent of all future resale royalties also going to the Foundation.
One of the criticisms of NFTs has been the impact on the environment given the use of blockchain technology that requires considerable energy usage. Liverpool have partnered with Polygon for their initial three-day sale, a blockchain platform that markets itself as eco-friendly, its carbon footprint claimed to be less than that of NFTs minted on other blockchains, such as the popular Ethereum blockchain.
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The club has created two categories of digital collectibles - a set of 24 unique ‘Legendary’ 1 of 1 NFTs, and a series of generative ‘Hero Edition’ NFTs that combine multiple player illustrations to produce a unique digital collectible for each fan. The ’Legendary’ and ‘Hero Edition’ digital collectibles will be available to purchase during a three-day sale from Wednesday, March 30 to Friday, April 1. Within the sale window, the ‘Legendary’ 1 of 1 NFTs, which consist of 24 legendary heroes, will be made available to purchase through a live auction.
During the sale, fans will have the opportunity to own a unique randomly generated ‘Hero’ Edition, which will be revealed once the sale comes to an end - like opening a pack of football cards. These will be priced at around £56 with the club stressing that these NFTs are not to be seen as investments and a cap will exist on the amount of blind pack NFTs that can be bought. The club consulted with the Advertising Standards Authority ahead of the launch and the NFTs can be purchased with debit cards and do not require the buyer to use cryptocurrency.
Drew Crisp, senior vice president of digital at Liverpool, said: "The LFC Heroes Club drop is a first-of-its-kind initiative, which seeks to bring a new, exciting and innovative way for supporters around the world to engage with the club. We always strive to adopt new emerging technology for the benefit of fans and club, while also being very conscious of our impact on the environment. This is why we have chosen to work with Sotheby's due to its capability to create NFTs on an energy efficient blockchain.
"We wanted to create a really accessible collection of NFTs that are truly unique to LFC, and simply give fans an opportunity to explore this new and trending topic, and most importantly, give fans the choice to buy one should they wish.
"We know that not all fans will be ready to explore the world of NFTs. However, we have conducted some in-depth fan research before entering into this market. We found that almost a quarter of 18–34-year-olds would be likely or very likely to participate in official NFT offerings from the club. This is a great chance to offer fans something truly special and at the same time give back to our LFC Foundation in the local community and beyond."
Through discussions with Spirit of Shankly it was made clear that fan tokens and the monetisation of supporter engagement would not be welcomed, with the club having turned down considerable sums in sponsorship offers from fan token firms.
The club had assessed the impact of NFTs in the football marketplace, looking at the potential pitfalls that had already been experienced in some quarters by clubs when partnering with brand new firms attempting to ride the crest of the NFT wave. But with NFTs set to become part of the commercial landscape for clubs in the years to come, Liverpool have attempted to link up with a recognisable name, one that is actually older than Liverpool Football Club itself. Liverpool spoke with nine potential partners before deciding to work with Sotheby's on the project, assessing which had the most sustainable platform.
Sebastian Fahey, Sotheby’s Managing Director for Europe, the Middle East and Africa, and executive lead for Sotheby’s Metaverse: "To collaborate with Liverpool Football Club, one of the most successful and storied football clubs in the world, for this first-of-its-kind NFT collection marks a turning point in how NFTs can be used to engage fan communities with tailored releases and unique concepts specially designed for their supporters.
"Together we have created a new digital art collection, which celebrates LFC heroes and leverages our Web3 technology to enable the club’s passionate and global supporter group to be a part of this exciting initiative for the long-term."
