OneFootball shutters Serie A web3 video offering
OneFootball recently made the decision to shut down its AERA NFT marketplace, with the closure scheduled for the end of the month. Despite boasting 170 million users across its platform in May, only a small fraction of its user base engaged with NFTs. The company had initially launched Serie A soccer NFT video moments to much excitement a year ago, following a $300 million funding round in April 2022, which aimed to expand its web3 ambitions. OneFootball had also announced partnerships with Dapper Labs and Animoca Brands.
However, the recent developments surrounding OneFootball are more indicative of its internal issues rather than the state of web3, NFTs, and sports. While some sports web3 platforms remain active, albeit with lower prices compared to last year, OneFootball has faced challenges. The decision to close the AERA web3 platform came shortly after the founder of OneFootball stepped down as CEO. Reports indicate that the company has faced financial difficulties, allegedly falling behind on sports rights payments to football leagues, including outstanding funds for video streaming rights. The German Football League is reportedly owed €60 million ($66 million).
In recent months, OneFootball has undergone downsizing efforts, letting go of a significant number of employees. Despite having web3 backers and investments from prominent clubs such as Manchester City, Real Madrid, FC Barcelona, Bayern Munich, Liverpool, and Juventus, the company has encountered financial struggles.
As a result of the closure of the AERA marketplace, the AERA NFT collectibles will continue to exist, but the community, competitions, and marketplace itself will cease operations. Plans for expanding functionality and including additional leagues have been halted. While some AERA NFT holders have expressed disappointment, the overall response has been relatively subdued. The packs containing the NFTs were sold at different prices, ranging from $9 to $199 based on their rarity. The marketplace currently has less than 300 listings.
OneFootball acknowledged the challenges it faced in the web3 space, stating that it had not found a commercially viable route that satisfied both the company and its partners while providing a comprehensive offering for users. The AERA platform is operated by Dapper Labs, the company behind NBA Top Shots.
When assessing the state of sports NFTs, it is notable that sporting NFTs continue to dominate in terms of transaction volume, even though prices may have decreased. Fantasy sports games, such as Sorare and DraftKings, have emerged as notable successes, indicating that NFTs with functional aspects have garnered more success compared to pure collectibles. It's worth considering that the activity levels may appear lower in June due to certain sports being out of season, making it less favourable for comparisons to September 2022.
