Cryptocurrency exchange Binance is the newest major sponsor of the Argentine Football Association (AFA). The sponsorship agreement is currently set for five years and besides sponsoring the National teams, Binance will also manage AFA’s official fan token and will become the naming sponsor of the association’s top-tier league. However, in June last year, Chiliz / Socios signed a three-year deal with AFA, including naming rights and a fan token that has already been issued. A Socios spokesperson told Ledger Insights that it views this deal as a breach of contract.
Fan tokens are a kind of cryptocurrency. Issuing another fan token with Binance could severely dent the value of tokens already bought by fans through the Socios partnership. However, oddly enough, the Socios $ARG token price is up 25% today, but crypto markets are very choppy.
Socios issued the following statement:
“We are thoroughly outraged by AFA’s recent actions. AFA has issued a press release announcing a new Fan Token partnership, Sponsorship and Naming Rights with a different provider barely 9 months into a 3 year contractual relationship with Socios.com that remains in full force.
They pretend to grant the same rights we currently enjoy to a third party and we will be doing everything in our power to defer AFA from proceeding and to protect the rights of the fans who have purchased $ARG Fan Tokens. This is a direct breach of contract and we will be taking all necessary legal actions, in every forum and jurisdiction, to protect the rights of Socios.com, the fans and to ensure AFA comply with what they have agreed with.”
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