Should the Cincinnati Bengals become a digitally-owned asset with Bitcoin?
Turning the Cincinnati Bengals into a digital asset may sound far-fetched, but local technology entrepreneur Adam Koehler believes he has a solution to Hamilton County’s stadium issue. Koehler proposes tokenizing the Bengals by converting its shares into digital assets that could be bought, sold, and traded similarly to cryptocurrencies like Bitcoin. This transformation could potentially yield billions for the Bengals’ ownership while allowing them to retain control of the team established by NFL icon Paul Brown in 1967. Rather than taxing residents for stadium upgrades, Koehler envisions an opportunity for Cincinnati residents to invest in a promising venture. He pointed out that the team’s value has doubled from $2.5 billion to $5 billion in five years, emphasizing the potential financial gain.
Although the Bengals declined to comment on Koehler’s proposal, industry experts speculate that the team might be hesitant given their historically conservative approach. Professor Joe Cobbs, who oversees the Sports Business and Event Management program at Northern Kentucky University, opined that the Bengals have been cautious in their strategies, as evidenced by their dissenting vote on a recent rule change allowing private equity firms to own up to 10% of an NFL team. Despite potential reservations from the team, Koehler highlighted the financial benefits this initiative could provide for the Brown family, whose net worth was estimated at $3.9 billion last year.
Koehler expressed optimism in Bengals fans’ interest in owning a share of the team, emphasizing the liquidity challenge faced by billionaire owners like Mike Brown. The financial implications could alleviate concerns related to player contracts and other expenses, such as stadium maintenance and estate taxes. Observing the current financial climate, Koehler recognized the necessity for owners to have cash reserves to secure player contracts and maintain operational stability.
The concept of tokenizing the Bengals has been brewing within Cincinnati’s entrepreneurial ecosystem for years, with Koehler and other innovators exploring new opportunities after the successful sale of Dotloop in 2015. Following the acquisition of Dotloop by Zillow for $108 million, Koehler delved into the realm of cryptocurrencies and blockchain technology. Blockchain, a digital ledger facilitating secure transactions, enabled Koehler to conceptualize the digitization of tangible assets, leading him to collaborate with industry experts like Mike Hiles from 10XTS. Together, they considered tokenizing real-world assets ranging from art pieces to real estate properties, showcasing the versatility of digital assets in modern finance.
As Koehler’s vision gains momentum, his proposal to convert the Bengals into a digitally owned entity presents an innovative approach to sports team ownership. By leveraging blockchain technology and tokenization, potential investors could acquire fractional ownership of the Bengals, transforming the sports industry’s financial landscape. While the likelihood of the Bengals embracing this novel concept remains uncertain, Koehler’s forward-thinking initiative sparks conversations about the intersection of sports, technology, and finance in the digital age.
