Mobile Streams signs NFT contract with Atlante FC

RNS Number : 2068A

Mobile Streams plc

22 September 2022

 

22 September 2022

Mobile Streams plc

("MOS" or "the Company")

Mobile Streams signs NFT contract with Atlante Football club

Mobile Streams plc, the AIM quoted mobile content and data intelligence company, is proud to announce it has signed a 5-year contract to be the exclusive provider of all NFT products for Atlante Football club ("Atlante").

Atlante is a Mexican football club based in Mexico City. Known as El Equipo del Pueblo, "the People's Team" it has one of the largest long term fan bases in Mexico. Founded in 1918, Atlante were original members of the Mexican professional league when it began in 1943. The club has won three national league championships. They are also three-time winners of the  Copa México , and twice winners of the  CONCACAF Champions' Cup  /  CONCACAF Champions League . They play in Mexico's second division, where they currently sit second, however their new owners are making significant investments with the aim of returning Atlante to the topflight as soon as possible.

This announcement, added to the recently announced Pumas and Mexican National team deals, makes MOS one of the largest providers of licensed NFTs in the territory and marks another milestone as the Company grows its Heroes NFT brand ( https://www.mobilestreams.com/heronfts) . The Company is actively engaged in securing further NFT deals and announcements on these will be made when appropriate.

Streams Data, a wholly owned subsidiary of the Company, and Atlante Football club have entered into a Licence Agreement whereby MOS has been granted the 5-year, global exclusive right to use the Atlante commercial and intellectual property for the purpose of the production, promotion and commercialisation of NFT products (the "Agreement").

Under the terms of the Agreement, the parties have agreed a target revenue figure over the 5 years of the contract of which MOS's share is approximately USD 3.7 million. This net figure, which is a target agreed between MOS and Atlante and not a forecast or guidance as to what will actually be achieved, is the estimated revenue MOS will receive after any revenue-share payments have been made. Revenue from the NFTs will come from both the sale price of the NFT and a royalty generated from them each time they are traded in perpetuity, these royalties are typically 5-10% of the sale price.

Non-Fungible Tokens ("NFTs") are digital data stored in a blockchain, a form of distributed ledger. The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded. In effect the Company's products are digital merchandise. An example would be a sports trading card - NFTs produced under this contract are one-of-a-kind trading cards. If you traded it for a different card, you'd have something completely different.

The global NFT market is expected to reach $122 billion in size by 2028, with more than $17 billion in sales in 2021 and $35 Billion expected to be generated this year. The fastest growing sector within this space is the sports NFT market and the Company believes this contract win with a major sports brand demonstrates that the business is now very well positioned within this sector.

MOS will produce a large range of NFTs for Atlante. NFTs will be sold via a primary marketplace that MOS is creating for the club which can be accessed via the team digital touch points, such as the Atlante website and social media accounts. Additionally, the NFTs will be sold via MOS's telco contracts globally, its LiveScores sites and Apps and the MOS Metaverse website. They will be marketed not only by the Atlante site, but also online across the world to fans globally. Additionally, MOS will be responsible for selecting secondary marketplaces to drive additional sales and trading of the products and finding 3rd party opportunities where the branded NFTs can be used or traded such as in gaming.

Details of the Agreement

Under the terms of the Agreement, the parties have agreed a target revenue figure over the 5 years of the contract, of which MOS's share is approximately USD 3.7 million. This net figure is the estimated revenue MOS will receive after any rev-share payments have been made. The Agreement also requires MOS to make a small initial cash payment to Atlante and if certain revenue targets in a year are met then a minimum revenue guarantee would exist for the next year.. However, in the context of the revenue that MOS would receive for this to be activated, the Board considers these would be modest and achievable from within the next year's revenue that MOS expects to receive from the contract. The Board further believes that, noting the expected recurring nature of NFT revenues, it estimates that its maximum net exposure, under all but the most extreme worst case commercial assumptions, including the upfront cash fee, would be approximately USD 50,000 over the first 3 years of the Agreement. The Agreement contains a 3 year break clause and standard terms for termination.

Mark Epstein, CEO Mobile Streams plc, said:

"It is a real privilege to have signed this contract. Atlante are one of the original members of the Mexican professional league and a club with an enormous and long-standing fan base. This deal, coming after the Pumas and Mexico National team contracts, underlines how well we are doing in the territory and our commitment to it. The whole team are delivering some incredible things and I am extremely proud of them. We can't wait to get going with Atlante."

Atlante FC Owner, Emilio Escalante said :

"We are delighted to be partnering with Mobile Streams for our NFT's. We look forward the partnership in delivering a new generation of digital products and merchandise to our fans that drive engagement with the team and additional revenue for the club. We feel there is enormous scope to grow these products and this partnership will deliver it."

About Mobile Streams

Mobile Streams delivers world class gaming content to a global audience, through its LiveScores and mobilegaming.com platforms, our long-standing carrier relationships in countries including India, Argentina and Mexico, and partnership with IGS (International Gaming Systems). Our Streams data insight, intelligence and visualisation services and marketing optimisation tools support the content business, as well as serving enterprise level bespoke clients and the Streams SaaS ("Software as a Service") self-service platform. Our strategy is to deliver next-generation content including gaming, Esports and related NFTs to a global audience.

For further information, please contact:

Mobile Streams plc

Nigel Burton, Adviser

[phone]

www.mobilestreams.com

Beaumont Cornish (Nominated Adviser)

James Biddle and Roland Cornish

[phone]

Peterhouse Capital Limited (Broker)

Lucy Williams and Duncan Vasey

[phone]

 

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