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RANGERS and Hibs could face financial consequences after one of their sponsors ceased trading.
The Ibrox men signed a two-year agreement back in October 2021 which made Sportemon Go an ‘official club partner’.
The company committed to a “significant commercial investment” into Rangers as part a two-year agreement which gave them back-of-the-shirt branding.
Founded by Australian-based father-son pair, Ricky and Corey Jackson – the firm are in the digital non-fungible token (NFT) collectables business.
It allows them to develop innovative creative digital collectible products and fan engagement activities
But they declared overnight that they had ceased trading and the “team, athletes and other IP are currently being removed or deleted”.
A statement on their website read: “The SGOX Token has ceased trading.
“The community voted unanimously to redeem SGOX for L1TF token.
“This was great result for Token holders, with 1 x SGOX Token being redeemable for 1 x Liberty One Treasury Fund Token.
“This was overwhelmingly voted in favor by over 90% of holders, with more than 95% of tokens.
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“Also note the Team, Athletes and other IP are currently being removed or deleted, as we finalise amicable termination agreements.
“These will all be removed once finalised. For further partner and token information or information on how to redeem tokens please email: email@example.com”
They also signed a three-year deal with Hibs in September 2021 with the partnership promising the investment of a significant six-figure sum each season along with ‘new products and fan engagement services’ including a Hibs Fan Token.
A Hibs spokesman told the Edinburgh Evening News that they had started to reduce their assets at the first sign of trouble – and were already planning a ‘mutual termination’
It is not clear to what extent the Ibrox side are exposed financially as a result of the deal or what safeguards are written in to the small print.
Scottish Premiership clubs – with the exception of the Ibrox side – last month announced they were joining the Sorare community, a fantasy football game that combines card collecting and tournament contests conducted through NFTs and cryptocurrency
Easter Road Commercial Director Greg McEwan said: “Prior to signing a significant partnership deal with SportemonGo, we went through a thorough process researching the company to ensure we’d done our due diligence.
“Like any partnership, we were then in constant communication with them and when we became aware of their financial difficulties, a few months ago, we stepped back from the partnership and began to reduce their assets.
“We would like to reiterate that no supporters lost out financially through the launch of the Hibs Fan Token earlier in the year.
“As it never properly launched, all supporters that purchased a fan token were refunded.
“Knowing SportemonGo’s difficulties, we had been planning for a mutual termination of the partnership and have a new partner in place for the upcoming season, which will be announced soon.”
Rangers have been approached for comment.
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