Athlete Transference Model

The flow of capital as it relates to the transitions in athlete ownership can incur a time variance based on the nature of the transaction.

In the sports industry, there are three general transaction models applicable here: 1) Full buy-outs (Ownership Transfer) 2) Partial buy-out (Ownership Shared) 3) Renting Out (Ownership Retained)

1) Full buy-outs (Ownership Transfer)

In cases of full ownership transfers, where 100% of an athlete's contract is bought out, the entire transaction is settled in a single payment.

*Ex. Athlete A is entirely bought up by Organization Z for $2,000,000 USD. Assuming that the public minted the entire available 20% supply of the athlete, the public would be entitled to $400,000. After funds are cleared and arrive into the custody of BCSports, they vest for 30 days, immedately after which they are injected into public liquidity pools.

2) Partial buy-out (Ownership Shared)

Partial buy-outs are slightly more mechanically complex operations that result in the sharing of ownership over an athlete’s career. Whenever organizations establish these agreements, the flow of capital breaks down into a multitude of recurring payments. In this model, BCSports will take the notional value of the entire agreement and allocate the public’s portion in a lump sum, upfront.

*Ex. Athlete A is partially bought by an organization, 50% of the athlete for $1,000,000 USD (marking the athlete’s market value at $2 million USD). That sum is to be paid out over the course of 5 years at a rate of $200,000 per year. Assuming the public owns 20% of the athlete at the moment of deal closure, they will be entitled to $200,000; which means that BCSports will distribute that sum (the entire first full year) directly to the public. As soon as $200,000 is collected, it is immediately deposited into the liquidity pool.

3) Renting Out (Ownership Retained)

In the events where athletes are lent out to other teams for a pre-determined duration of time, settlements will take place similarly as in the case with the preceding Partial model, where the first 20% of the total transaction will be allocated for the public upfront.

*Ex. Athlete A is lent to Organization Z for 2 years for $300,000. Assuming that the public fully owns 20% of the athlete, the public would be entitled to $60,000. Regardless of how the payments are structured, the first incoming $60,000 will be deposited into a liquidity pool for claiming by NFT token holder before BCSports retains anything.

How are Rewards Settled?

All transference rewards, regardless of acquisition model, will be paid out in the Atleta Coin (ATLA) or a range of reputable stablecoin (USDt, USDc, tUSD, et al.) and follow the same structural scheme:

1. The public is entitled the a sum proportionate to their ownership, 20%. Each individual holder is again entitled proportionate to their holding.

2. After an agreement is struck, and cleared, the public is notified of the event.

3. Once the transaction settles and funds arrive into the custody of BCSports, a 30 day vesting period is engaged.

4. Immediately after the 30th day, funds are utilized to acquire liquidity paid tokens (ALTA/Stablecoin) and a liquidity pool is instantiated.

*in the future, BCSports will be open to exploring the possibilities of integrating other native L1 digital assets (if/when interchain operations are engaged).

How much of an Athlete is tokenized for the public?

All tokenized Athletes will have 20% of their supply made publicly available. The remaining 80% is locked into escrow until a trigger event takes place. Trigger events are any of the three (3) transference actions.

*Generally, the exact number of NFTs per athlete will be 5,000; however, it will ultimately depend on a few factors including but not limited to: demand, athlete tier, and macro market conditions.

What are the Athlete NFT Liquidity Pools?

Athlete NFT Pools are public goods belonging to AthleteNFT holders. Operating through a modified AMM model, pool liquidity is instantiated by the BCS tokenization platform by locking up the non-circulating 80% of tokens with an underlying crypto asset (Stablecoin / ATLA token). Underlying assets are acquired by BCS tokenization platform within a short period after transfer funds are received. Upon creation of the pool, the pool issues LP (liquidity provider tokens), which are then burned to engage a “claiming” module available exclusively to the NFT holders.

How does the claiming work?

As is the case with BAYC implementing limited APE token claims for every single NFT, where the claims could only be made a single time by the address holding said NFT; every Athlete NFT that qualifies for a claim can do so only once (1x). After a claim is registered, the claiming NFT is destroyed alongside the proportionate locked LP NFTs + liquidity itself. These burns increase the collection's scarcity. Claiming is not forced and the pools do not expire until they are entirely drained.

Athletes that are tokenized by BCSports and owned by the public will accrue and distribute any and all capital, proportionately, over the duration of the NFT's existence in the BCSports Ecosystem. Meaning that users can compound their potential claims in the event of multi-contract deals.

*Ex. Athlete A strikes a lease deal worth $300,000 and earns each of his NFT holders $60 ($60,000 /1,000 NFTs); half of the users claim their liquidity (draining $30,000). A year later he strikes another deal worth $600,000; now, each remaining holder earns an extra $120 each; being able to claim $180. Obviously, those that claimed their liquidity earlier cannot contend for the new injection because the amount of the Athlete NFTs will not increase; in turn theoretically driving up the face value of the NFT's.