Chiliz Enters US College Sports Market, Launches 5 Fan Tokens

Global sports and entertainment company Chiliz said July 27 it is launching its first fan tokens and fan engagement program in the US through a partnership with sports marketing firm Playfly Sports, stepping up its expansion in the country’s sports fandom ecosystem.

The first five universities to receive fan tokens are Louisiana State University, the University of Maryland, Michigan State University, Pennsylvania State University and Texas A&M University. Chiliz plans to use the rollout as a starting point and launch about 30 college sports fan tokens over the next 12 months.

The expansion comes amid a shift in the US regulatory environment. In joint guidance issued in March, the US Securities and Exchange Commission and the Commodity Futures Trading Commission classified fan tokens as digital collectibles and digital tools, concluding they are not securities. That allows Chiliz to expand the fan-token model it has operated in European professional sports into the US college sports market.

Chiliz said US college sports has a fan base comparable to professional leagues and strong regional loyalty. Through fan tokens, the company plans to offer fans on-chain participation and rewards programs. It also plans to use part of the revenue from token issuance for student-athlete NIL (Name, Image and Likeness) programs, creating a new revenue model to support athletes.

“These are the first fan tokens in US college sports, and they will mark a new stage for the fan-token asset class,” Chiliz CEO Alexandre Dreyfus said.

Playfly Sports CEO Craig Sloan said the initiative would broaden engagement with college sports fans while creating a new source of revenue to support student-athletes.