Athletes Are Demanding to be Paid in Crypto and I’ve Got Some Concerns
DYOR Dave
For thousands of years, there have been people in our society who are worshipped for their superhuman efforts in the sporting arena. In the very same timeframe, there have been a group of people who are entrusted by billions to look after the most sacred of humanly possessions, money. Until recently these two worlds rarely ever crossed, apart from Wallabies/NAB long lunches at Mr. Wongs, with each side accepting their place and doing what they do best.
With the explosion of cryptocurrencies and NFT’s around the world, just about every dribbler on the street now considers themselves a financial whiz, and sports stars are the latest to hop on the bandwagon. With the future of monetary systems unfolding right before our eyes, their decisions could have significant consequences for them. Despite dropping maths in year 10 and having very little interest in cryptocurrencies, I though I might explore this fascinating revelation of athletes taking their finances into their own hands.
Where is this Happening?
Since the landmark decision that allow US college athletes to profit off their sports, a wealth of players have volunteered to have their salaries paid in cryptocurrency, with some even starting their own currencies. It’s not just college athletes, with a number of NFL and NBA stars also opting to receive payment in crypto. Cade Cunningham, Trevor Lawrence and Russel Okung are just a few of the many who are receiving millions in crypto, While Saquon Barkley has announced he will now only do endorsement deals for payment in Bitcoin.
How does Cryptocurrency Work?
I don’t know and at this point I’m too afraid to ask. I think it’s something to do with the blockchain which is decentralised. I don’t even know what that means. Besides, by now it doesn’t matter because we just all accept that we know what it is when I’m sure barely anyone really understands, least of all some athletes. That’s not what we’re here for though.
How will it Turn Out for them?
There’s every chance cryptocurrencies could become the new norm, but even then, how would we deal with so many different currencies. Surely banks will standardise everything and leave many with worthless internet points. That’s a best-case scenario. There are no guarantees when it comes to crypto. Millions one day can turn into cents the next, and with the busy lifestyle of an athlete, it would become hard to closely monitor your investments. Timing is crucial persistence is key, but then again, there’s still a chance crypto will go the way of the fidget spinner, the silly bandz, and the Harlem shake. Faded into history as a relic of a past era.
What does this mean for Sport at large?
It may seem like the surge of athletes taking their finances into their own hands may spell the end for player agents and financial advisers, but the need for professional expertise when it comes to millions of dollars will always provide a space for the more mathematically inclined to succeed. As the trend continues to grow, it may take over, or it may just become another consideration in a contract among things like houses, cars, boats, and anything else that can be sneakily gifted. If there’s one person who’s the real loser in this situation, it’s the bookkeepers at sports clubs around the world, who now have to keep 2 (or 3 in some cases) sets of books.
Will It Ever Happen Here?
While the trend seems to be skyrocketing in the US, its unlikely to take off here anytime soon. With strict regulation around the banks and a hesitancy to accept it as legal tender, the government would be unlikely to enact changes without immense support from the people. Plus, with the NRL’s history around salary cap management, I doubt they would risk letting any more money fall through the cracks.
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