2021-07-02 coinrivet - Football team AZ Alkmaar to hold BTC on balance sheet

[acquafredda]

Professional Dutch football team AZ Alkmaar and Bitcoin Meester have inked an official and exclusive partnership that will see AZ become the first Dutch team to hold Bitcoin on their balance sheet and potentially pay player salaries in BTC.

In the announcement, AZ Alkmaar, who finished third in the 2020–21 Eredivisie season, said that they are “confident in the future of Bitcoin”  and confirmed that part of the sponsorship amount will be paid in Bitcoin. The sum will then be left on the balance sheet during their partnership.

https://coinrivet.com/dutch-football-team-az-alkmaar-to-hold-bitcoin-on-balance-sheet/

The sponsorship deal will be finalized entirely in Bitcoin, and the Dutch club has promised that it will keep the amount in BTC on its balance sheet. AZ Alkmaar probably will also start paying its players in Bitcoin, joining the growing list of sports clubs that have adopted cryptocurrencies to pay their athletes. It is unclear whether the player will be paid in Bitcoin or not as I could not find any confirmation.

[SFR10]

The sponsorship deal will be finalized entirely in Bitcoin, and the Dutch club has promised that it will keep the amount in BTC on its balance sheet.
~Snipped~
It is unclear whether the player will be paid in Bitcoin or not as I could not find any confirmation.

Bold move by AZ Alkmaar and since they mentioned "keeping it on the balance sheet during their partnership" which lasts until 2024, then it's safe to say that players will not receive their wages in BTCitcoin.
^{- Even if they want to, I don't think their current contracts would allow that to happen [perhaps it'll be possible for their new signings].}

[buwaytress]

I've actually watched them play a match, it's not the best club in the land but it's not shitty either. Keeping BTC on the balance sheet can mean anything, but impossible to keep 100% if they want to pay wages and other bills, interesting to see how much they manage to keep by 2024. Pretty good price to lock in sponsorships right now I have to say.

Reminds me when I kept up to 3 currencies on a balance sheet at an old job, one a local currency that we tried our best to use, one a dollar rate that was at crazy rates compared to black market rates, and another a neutral currency ah, those crazy days of hyperinflation. Hated playing around because you'd end up without enough funds if you got it wrong.

[bbc.reporter]

@buwaytress. Agreed. Keeping it in their balance sheet might be good for their monthly or quarterly income statement reports if they made the correct timing, however.

I reckon this state of the market is where it might be the correct time for companies to begin keeping some bitcoin in their balance sheets. The volatility is low, there is a bullish divergence that shows a weakening of the pump and fast moving averages might cross over slow moving averages by the end of August which will be clearly bullish.

[bryant.coleman]

This will be similar to the case of Russell Okung (NFL player representing Carolina Panthers), who recently announced that he will receive all of his salary in the form of Bitcoin. In the end it turned out that the salary will be paid in fiat, although using a Bitcoin-based payment processor. Similarly, Sean Culkin of Kansas City Chiefs also made a similar announcement. But the truth is that most of these players are not themselves interested in Bitcoin, and are going for the Bitcoin payment as a result of deals with various firms. Contrary to what is said on the outside, the amount involved is low.

[acquafredda]

@buwaytress. Agreed. Keeping it in their balance sheet might be good for their monthly or quarterly income statement reports if they made the correct timing, however.

I reckon this state of the market is where it might be the correct time for companies to begin keeping some bitcoin in their balance sheets. The volatility is low, there is a bullish divergence that shows a weakening of the pump and fast moving averages might cross over slow moving averages by the end of August which will be clearly bullish.

Keeping bitcoin on balance sheets as a reserve asset should definitely not be seen through the eyes of a trader. Otherwise there would be no point in betting on bitcoin as a reserve asset which, by definition, like gold held in central banks is the currency of last resort.
Holding bitcoin will mark the status and financial health of companies and states, because being able to afford to hold btc will mark a low propensity to borrow as well as testifying that there is excellent cash flow if you are able to buy and store bitcoin for the long run.

[bbc.reporter]

@acquafredda. I cannot argue or disagree, however, we should also look at this realistically. I reckon AZ Alkmaar themselves viewed it realistically.

Would companies blindly buy bitcoin without any research or without asking for advice from market analysts? This would possibly risk adding a loss in their income statement. I speculate they knew it is the right time to buy bitcoin.

[acquafredda]

They probably paid some consultancy firms to know what good could happen when buying and keeping bitcoin as a reserve asset. Of course they did some research, I do not see any company being able to do that overnight. Due diligence to buy form any sources requires some time and that alone has probably required two weeks. Realistically they could have decided that around May and announced it now.
I was not arguing with you, expressing my pov.

[Kong Hey Pakboy]

With a balance sheet that holds bitcoin, I think that it's safe to assume that players can get paid with bitcoin but I don't think that it's going to be the mandatory way to receive their salary, maybe they can do what Okung did and do a half and half with their salary.