The Next Layer: On-Chain Infrastructure and the Monetization Frontier

The mothership model of sports monetization describes what happens when franchises stop selling access to audiences and start owning the audience relationship directly. The club becomes the top of a broader commercial funnel that earns revenue across media, sponsorship, real estate, hospitality, e-commerce and digital engagement at once.

The most successful franchise operations are already building toward this model. One structural obstacle has limited how far they can take it: the infrastructure for direct, verifiable, programmable fan relationships at scale has not existed.

Blockchain is beginning to change that, with implications for where value sits in sports.

What On-Chain Infrastructure Makes Possible

Tokenized ownership rights allow fractional, verifiable stakes to be issued and transferred with less settlement friction, subject to securities law. A position can carry utility rights, such as event access, commercial previews or governance participation, that are tied to the token and enforced automatically.

Smart contracts can deliver premium access and experiences based on token holdings, without a team of people managing each relationship by hand. That makes experiential utility scalable in a way it has not been before.

The Investment Implications

The shift from passive audience monetization to active, programmable fan relationships is a revenue architecture story, not only a technology story. Clubs that build this infrastructure now establish data advantages and direct commercial relationships that competitors cannot quickly replicate. Ticketing platforms, digital identity systems and on-chain engagement tools earn fees as this activity moves onto their systems.

SI Tickets, a Fund holding in Sports Tech, provides blockchain-based ticketing.

Separately, regulated venues for trading tokenized sports interests are emerging. Any transferability they offer belongs to those instruments, not to fund shares. Fund shares can be sold only through the Fund's repurchase offers. The Fund will offer to repurchase 5% of its outstanding shares at NAV each February and August.† Offers may be prorated if more shares are tendered than the offer covers, and an early repurchase fee of up to 2% applies to shares held less than 18 months.

For investors, the infrastructure around the franchise deserves the same attention as the franchise itself. The sports ecosystem, not just the sports franchise, is where that infrastructure lives.

† The Fund's first repurchase offer is scheduled for August 2027.

This content is for informational and educational purposes only and does not constitute investment advice or an offer to buy or sell any security. Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal. Please read The Champion Fund's prospectus carefully before investing.