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My Football Space Connects Fans with Clubs Globally
After almost 20 years in consulting … it was a good time to think about what I wanted to do in my life, what I have a passion for.Alex Schlicher, Founder My Football Space
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Media Partnership
This podcast is in media partnership with the FinTech Forum (http://www.fintechforum.de/). The FinTech Forum — launched 2013 in Frankfurt am Main — is the first and largest hub for FinTechs in Continental Europe, with a community of more than 12.000 companies. With more than 17 events, with more than 270 startups on stage, and more than 1.000 investors and financial institutions. FTF alumni have raised $310mn+ in funding and resulted in exits worth $300mn+ .
I was not really looking for founding a company. The idea came to me since I am passionate about innovative technology, finance and sports.Alex Schlicher, Founder My Football Space
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The Founder
In this interview, we are talking to Alex Schlicher, a former management consultant, turned entrepreneur (https://www.linkedin.com/in/alex-schlicher-cfa-953660/). Alex started out with vocational training in retail banking, foreign exchange trader, and a management consultant in capital markets, where he worked for several consultancies. While he worked in FX trading (Foreign Exchange), he learned how derivatives are working and structured. He is a born “Frankfurter Bub” (a native Frankfurt boy).
In his past, he was also in charge of building up the German business for a London-based consultancy.
After almost 20 years in consulting, he decided to do a re-set and spent some more time with his family.
Alex has been passionate about sports all his life and is a fan of Frankfurt-based Bundesliga Club Eintracht Frankfurt. Alex currently pursues an executive MBA at Frankfurt School for Management and Finance, in one of these classes the idea of My Football Space “hit him” as he said.
The initial trigger for setting up a company was really driven by technology, because I saw the potential of the technology.Alex Schlicher, Founder My Football Space
The Startup
Alex founded the sports tech startup My Football Space (https://myfs.de/). He got the idea for his startup while one of his professors talked about everything of value is on the Blockchain in the future. So it instantly struck him this may include football in one way or another. Initially, they thought about investing in football players, but changed this amazingly fast, since it was too much like an investment.
They do not want to change the memberships of the sports clubs, as they are popular for example in Germany with Bundesliga. This is not available to many people all over the world, this is what they want to change.
This is something everybody shares, the passion, the emotion for the sport. It is a very global thing. There is no difference between a fan in Australia, Asia, the US, or Europe.Alex Schlicher, Founder My Football Space
The Bundesliga Club Bayern München has globally more than 100 million fans, according to Alex. On the other side of those fans, there is only a fraction really a member of the sports club (300.000). The app also helps the club to understand its digital fans and give them matching offers.
My Football Space App
Their app for membership for fans will be available in app stores like Google or Apple towards End of 2021.
Venture Capital Funding
The company already closed two financing rounds, one by business angels and one by the management team. Currently, they are looking to close the next funding round in 2021 Q2 or Q3.
Blockchain is really stepping out of its baby shoes. The maturity level is really reaching a tipping point where mass adoption in a lot of industries is about to start.Alex Schlicher, Founder My Football Space
The Video Interview is set to go live on February 4th, 2021 17.00 CET
The Audio Interview
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Further Readings / Additional Resources
Bundesliga https://en.wikipedia.org/wiki/Bundesliga
Eintracht Frankfurt https://en.wikipedia.org/wiki/Eintracht_Frankfurt
Frankfurt School of Management and Finance https://en.wikipedia.org/wiki/Frankfurt_School_of_Finance_%26_Management
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The Interviewer
This interview was conducted by Jörn “Joe” Menninger, startup scout, founder and host of Startuprad.io. Reach out to him:
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Transcript
Intro
[0:00] Music.
[0:08] That I owe you were podcast and YouTube blog covering the German starting.
[0:13] Music.
[0:20] Hello and welcome everybody this is Joe from start operated I owe your startup podcast and you to block from Germany today I’m bringing you an interview with Alex from my football spacein media partnership,with the fintech Forum which is an annual event taking place in Germany in Frankfurt in November each yearokay you can already guess it it’s over but I’m interviewing past participants and I’m very confident Frank will.Again have another fin take form in November this year so let me first welcome Alex hey how you doing how you learn it’s Alex here I’m doing very well thank you,as opposed to the usual picture of founder who starts right from the dorm and you have had a really big professional life before you actually startedin in a start-up funding your own startup so I’ve been stalking you on LinkedIn and is everybody would like to learn more or connect to you directly.
[1:27] He can go down here in the show notesthere is a link to our blog and on our blog there’s a link to your personal LinkedIn profile so when I’ve been looking through that I’ve seen we have something in common we both did an apprenticeship.At the bank and then I see you’ve beenalso a consultant in financial services Capital markets can you tell us a little bit about this and how this influenced not only you but also your life and your viewon companies and startups sure yeah let me let me introduce myself.
The Founder
[2:08] And first of all maybe a big thank you to you to present me and host me today’s podcastum I’m born and raised in Frankfurt and Frankfurt is one of the few European cities with a big Skyline and I have to admit this influence my career.Lot from the star that was always fascinated by The Innovation and dynamics of investment banking was really inspired by that in.Try to understand and learn the job from from scratch so I did the bank Apprentice ship in 95 quite a long time ago.
[2:45] And but that enabled me to understand how Banks work from the inside and have Financial Services actually work and to differentiate between the work with retail clients and institutional clientsand corporate clients so this was the foundation layer of myFinancial Services career and post that I started to work in FX trading for an investment Bank.And really learned how derivatives are composed how pricing of complex Financial derivatives works and how the industry functions which.Really gave me a lot of in-depth knowledge of the industry and give my International and all SLI also,I would say,culturally interested background I’ve decided to work for a consultancy rather than being stuck in front of six or eight screens and that was what I wanted to do so a consultancy was the perfect,set up for that so the first five years of my Consulting career I worked for Accenture.Which was a great platform you learn Consulting how projects are set up our project teams are set up and that was my stuff.
[3:57] Starting point as an entrepreneur I was hired to work for a consultancy in London and set up the german-speaking business for an English for london-based consultancy in capital markets.And as you have seen in my LinkedIn profile you mentioned this before the call we both work for the same,managers in the past I had the pleasure to work with them for cap.Which was a capital markets company consulting company.And I had the pleasure to build up the German team together with the managing Partners there as he said we’ve been working in very similar area but actually we never met in person that we are aware of so far right.I guess there’s a couple of people we came across some that we both so but we never met in person I don’t think so.And now the interesting stuff is you have been with this company for approximately 10 years as a consultant as a partner as a member of the managing board.
[5:00] I would be curious why and how did you decide to then take the big leap of faith and get into.
[5:10] Entrepreneurship what did trigger you there.First of all after 15 years it’s been it’s been close to 20 years of Consulting I thought it was a good time to reset,
The Founder — How Alex Decided To Leave Consulting
[5:25] spend some more time with the family I have two kids I’m happily married live in Frankfort with my my family and I had to work a lot during during myKorean financial services so it was a good time to spend some more time with the family spend some more time with the kids and as you do that as you are in the middle of youryour life I don’t know what my life expectancy would be but I’m 44 now so I guess I have probably reached nearly 50%.Um and it was a good time to think about what I what I want to do and what I’m what I have passion forI wasn’t really looking for founding a company the idea really came to me but I’m very interested in Innovative Technologies I’m really passionate about finance and I’m very passionate about sports very active person.And like that the idea of setting up a sports tech company really just hit me in the face I must say and.That was the way I started to to fund the company.
The Founder — The Driver For Founding A Sports Tech Startup — A Passion For Sports
[6:28] That was something I want to ask you because usually it’s with sports you either.Passionate all through your life or they never really touchy for example for me I never follow Bundesliga or football or something like this and so it’s,I’m one of the people who would not be any Target group can us can you tell us a little bit about your passion for sports and how this how this actually drove you to your current business idea.
[7:08] The was the initial trigger for the business idea was was really driven to through technology because I saw the potential of the technology,and then combine it with the sport But to answer your question about sport one thing that is,really common across all sorts of sports not only not only football as it is in my company but really old Sports from amateur to professional sport is the emotion and the passion.The people who play the sport and also the people who coached the sport and the people who who get entertained by this board beingyou know parents friends or just purely fans and this is something everybody shares is the emotion the passion for the sport and for the activity and and it’s and it’s a very Global thing there’s no differenceabout the emotion of a fan in Australia in the u.s. in Asia or in Europe everybody loves.To watch sportin and to cheer with it and we know when you’re when your favorite team wins this is something which is uncomfortable to a lot of other experiences.
[8:15] I know where you’re going at the only difference maybe the.Either de Sports you’re playing for example Cricket or rugby which is not pretty popular in Germany American football another exampleor the team you are a fan of I do believe there is a lot of,competition between the teams in the Bundesliga as well so,
The Startup — Starting The Company
[8:40] now we know you have been a partner with a professional Service Company in capital markets you are passionate for football and.
[8:49] The business idea actually as you so literally said hit you in your face can you tell us about the moment and how it actually developed from there.Of course I’m telling you really how it how it worked so I was I was attending a blockchain Nai class currently doing the Executive MBA at Frankfurt School of finance and management and.I was sitting there and I’ve been dealing with with blockchain from a cryptocurrency perspective for the last six seven yearsand so I understood the technology but as it was sitting there the and the professor was talking about the digitization of,acids and his vision that didn’t the next 10–15 years nearly every thing that is of value is going to be,represented on blockchain as as the as the technology to securely store and legally represent your.Um your ownership that was really when I thought about that there doesn’t exist a platform to date where I as a fan,would have the ability to invest in in a player or in a football club.
[10:01] And that was really the starting point where I was you know what usually happens when you have an idea you probably assume,yeah I don’t know the entire Market that’s cool little bit in research and see if my maybe there is a company who offers what what you,salt was interesting or what was appealing but there was nothing there was no competitor there is nearly no Sports egg company globally that addresses blockchain.Offerings a blockchain products for for the sports industry.That has changed by now the industry has become very active but I’m talking about September October 2000 19 when I really had this initial idea so the market was really immature and the professor was talking about.
[10:47] The maturity curve of blockchain as a technology and I guess the audience is listening to this would fully agree that blockchain is slowly stepping out of its you know baby shoes maturity level is really reaching,a Tipping Point where Mass adoption in you know multiple Industries is is about to start.So but it’s still a very immature in terms of Market Market penetrationand that was the point where I really I would really excited about a secure technology a cheap technology a technology that allows to divide assets into,zillions you know you could literally decide yourself in how many pieces you want to strip down your your acid.You know imagine beautiful painting that is an acid that is worth multi-millions that you could never take a share in but now you could legally represent this acid by,say a million a million pieces and suddenly becomes affordable and you could really be an owner of.A beautiful very also very costly costly piece of art that is changing in value and maybe 10 years later you could have participated in the,and with blockchain allowing this to be easily dividable and making it available to retail customers there is a lot of Merit in this and I was into into football and.
[12:15] And the ability to look at Players as.
[12:20] Being represents a player so the which regulates those transfer when someone is bought and,and and going to another club and allowing fans to participate not so much from an investment perspective,it from the perspective of taking part and being part of the game I always tell my friends I think it does make a difference when you are in the stadium and you watch,your teams play and you could say you would actually say look at the team down there I own.
[12:51] Part of them even if it’s just a Euro too but suddenly a fan a normal fan normal people become part of the game and then,the option to show their loyalty to the player and also to the club and potentially even financially support the club,um so so there’s many aspects to this I think there’s many different motivations I want to make clear of this point this was never really the.The perspective of an investment platform and but that was a starting point and as we then as an entrepreneur you start investigating,your idea and the pros and cons you do a lot of research I spoke to a lot of,the people from the sports industry and and fine-tuned the programs and the sorry the products and.We are we are not at the play investment stage yet actually we have changed quite a lot because we understood that.Offering a product that is so close to an investment thing might address very few fans I mean it’s very interesting of course for those people but we want to have a product that is,that is appearing to all fans so we have come up with different ideas.
[14:03] So bottom line is you fine tune to your.
[14:08] Product to be more driven by Passion than investment returns let us take two perspectives on this product let us first.
[14:19] Like go through.How it would look like for person that does not yet have any idea what my football space is and let us get how.They would approach it how they can get into it how a typical customer Journey would look like and what are their benefits out of that.
[14:45] Yes of course the well as I said.
[14:49] We want to offer a product that is of global scale and has the ability to address all fans globally and all professional football clubs globally.So if my pet if I have a passion for my club and I want to become a member of the family of the club there is few products available.
[15:07] Of course I can buy a jersey or can buy a ticket,I can’t really become a member of the family of the club so we decided it would be really appealing to rethink membership of a club,and offer a digital version of it that is enabling the fan to become part of the club’s identity.At this point I think we need to differentiate between the way things are regulated in Germany versus outside of Germany we have the fines fees and so the,the club sports I was usually represented by by members that have legal voting right at the end of the year they decide who’s going to be the board of the.Of the of the club and.
[15:51] Very official view this is not so much the case in other countries and we don’t want to replace this this is always going to be there and has a lot of would say maraton right to be there but it’s also a very local thing,so for personally I’m a big fan of my local Club in Frankfurt Divine to Frankfurt so yes I have a membership of this club because I’m locally here I can go to the.Members reunions you know at the end of the year end and vote this is of course something that I could do being being locally here,but imagine I was living in London but I was originally born in Frankfurt or imagined I was just born somewhere but I love intro Frankfurt because.The player for my country plays place with this club and I want to be part of the club’s identity and so we have designed what we call a fan badge.
[16:39] It’s a license license Club product that allows you to become officially a supporter of the of the club and the club would give you specific things that.That helped you in your in your fan Journey one thing that we realized when we digged into what clubs offer.They usually don’t aim to understand their fans very well of course this is changing with.With digital transformation as I may call it.
[17:10] But this is a phenomena as we’ve seen with a lot of older type of companies old industry was always usually product-centric and in the product was in the in the center of the activity whereas newer companies.Especially tech-driven companies they try to be very customer Centric and understand the needs of the customer and then adapt the product so they fit the needs of the customer and we want to enable clubs to understand,the needs of the fan and every fan is different if you look at big clubs like say for example Barcelona with 250 million fans or Bayern Munich with with over a hundred million fans they have.Over 50 million Facebook followers and,probably and they have 300,000 members so there is a huge gap between the followership and the people who actually consider themselves to be part of the club’s family as a club member so.And then you ask these clubs how much do you actually know of your of your digital fanbase.
[18:13] And there’s there’s not so much the could say of course there’s different analytics those those global platforms offer to give them some insight but the fan is never really asked what they want and this is what we want to change.We want to offer a product where you could with two or three clicks can become a member of your club and the club asks you during this process what are your two key interests.In the club in the club’s products and the club will not send you advertisement or penetrate you with stuff you don’t want to see.But will only give you offers and basically benefits that you’re really interested in.Let me make one example to make this make this more visual for example assume assume I am a very.
[19:03] How can you say that I’m not very wealthy but I love football I have a low salary so I can’t spend a lot of money on.
[19:12] Highly priced events or highly priced merchandise but I go to the stadium try to go to the stadium Stadium every every other week so I’m really interested in discounts,maybe a discount code would be the thing that really triggers me and makes me happy,so the club understands this and then doesn’t offer me all the other things but sends me send me discount codes or and sends me opportunities to to make my journey a little bit more affordable which is of course then.Leading to more happiness in my side because I see okay the club listens to what I want and it doesn’t doesn’t bother me but rather give me what I want but there’s other fans who are the other side of the of the of the.Value chain very wealthy people they don’t really care about discounts but they still love the club they have a lot of passion for the club,but they would like to get maybe a VIP tickets or exclusive content exclusive meetings with specific people and are willing to pay a lot of money for this.These people also don’t want to be penetrated with offers for all the other stuff but they would like to be triggered on those things so.At the moment the club understands the different need patterns of their fans the club can better work with it and and also.The create more more happy fanbase.
[20:32] And all those benefits basically come from you go on your website.The link of course is down here in the show notes Hugo a you,purchase a digital membership there and then fill out the questions as you said on the app and this all,blockchain based and you get a digital blockchain based membership in the respective football club is the is that about right.
[21:04] That is about right I mean the website we will have an app as the main platform for our.For fans we also integrate we will also integrate a lot of the functionality or at least we offer it to be integrated in the club’s it infrastructure.Especially the client onboarding is not something that you have to do on our platform but as technology gets more complex also the club’s understand that some things it makes more sense to actually use it on a platform rather than trying to integrate everything in your own,it infrastructure but we are really open to to this customers with according to the club’s needs but yes you will you will do that on,on our app in your example and an offer of a digital membership you said blockchain based yes is blockchain based and we get the question a lot what does the membership have to be blockchain,
The Startup — Why Blockchain?
[21:58] dr. bass let me elaborate on that a little bit if that’s okay with you.
[22:02] Yeah sure go ahead the of course pure membership badge doesn’t have to be on blockchain as a technology althoughyou could already argue since it’s a document of authentication or identification it makes sense that it’s on a technology that allows to do that insecure way.Because it’s an identification document towards your club but then if you think this a little further and we were talking about voting rights before.We Believe family members of,clubs or of a union they should be allowed to to be asked a couple of things and participate and actually voice their opinion and vote about a couple of things and as we’re talking about voting rights which are attached to the to the fan badge,per se it’s nothing that you can purchase the voting ride will be part of the of the of your membership.
[22:58] Then it’s very important that you understand in an authentic way that this person has voted.So it can’t be compromised and the club can be sure and also the voters can be sure that maybe no bought or no other technology has compromised your voting system and is tweaking decisions in one or the other way.But is really transparent for the club and for the fans to see okay this is this is a real voting that happened and then if you think this a little further.
[23:26] Why blockchain is so important there’s a lot of products down the road in our platform that will.Require secure technology when you when you talk about digital assets for example imagine.
The Startup — Beyond Membership And Voting: Digital Items For The Fans
[23:42] Some Club issues certainthings virtually which is definitely something especially interesting for kids like you know like your Skin’s and Fortnight but these things are as is that you can actually buy you can buy from your club,fans can can really have a lot of fun with that this is definitely not for everybody.But for the people who are passionate about virtual items and digital items this is really a cool thing that you can also experience in many other areas of your life already but football clubsespecially in Germany are still very conservative about it so we will see where the journey takes us,but blockchain as a technology layer for our products we believe is the right right thing to enable this this in the future.I understand what are the benefits for the different groups of fans and — customers.
[24:39] The football club actually lurtz,something about their fans and like they do graphical distribution stuff like this are there additionalbenefits for the club despite learning and being better in reaching out and understanding the fans.
[24:59] Of course is there’s a lot of benefits for the clubs as we believe first of all,
The Startup — Benefits For The Football Clubs
[25:04] we have to I think we have to be clear for the club there is its two main benefits it is getting to know the interests of your of your fans but also a monetization aspect professional football clubs have.Huge commercial responsibilities that is required to fund the sporting activity and this is something that is disputed heavily by fans because fancy.Clubs getting too commercial maybe trying to commercialize fans too much and the industries getting,away from the original Heritage which is of course Very Much driven around the pure Sport and the the athletes so but still clubs have have to have a commercial agenda in order to maintain and sustain,they’re the sports business so this is a big thing and we believe as we are enabling the club to bring the fans globally closer to the club,due to a membership which you have to pay for.This will give the club a better Financial footing is nothing that you you have to let’s put it this way you can’t become better fan because you invest more money there’s you know.
[26:16] Be a standard price but,because you have so many fans there’s a huge financial potential for a lot of football clubs let me give one example and maybe staying with the big German club,by minute by minute is the biggest Club in terms of members globally they have 300,000 members but if you compare this number to their fan base which is over a hundred million,this 300,000 is a really minut figure.
[26:44] And we believe there are a lot of fans out there who would love to become a part of the club’s family but they need something that is easier to access than an online form that you have to fill.Rather than what we offer you know two or three clicks which is a typical user experience in the lot of the apps we have nowadays with with modern modern apps and cut and tech companies and we believe there is a huge market forand the big interest in the fans of Bayern Munich and imagine two or three million conversion by this digital.Imagine the membership cost to Euro a month that would revenue for the club.
[27:24] Six million euro a month and over 70 million a year which of course is even for a big supper club like Bayern Munich a lot of money in their annual in their annual budget.SoAnd I think this gives you a little bit of an idea where it becomes interesting for clubs they increase their fan base they’re actually convert them to members which is a very intuitive thing for a club.It’s nothing where you can really talk about over commercialization because increasing the family and.Allowing people who share a love of the club to become a member is nothing we could really have a bad feeling they’re not selling like okay if you pay more you become a better fan but everybody is the same.And and with that the club can can of course,have a better Financial better Financial footing so these we believe are the two main benefits at least the Forefront if you look a little bit deeper of course clubs,we’ll prepare themselves for the next generation of fans which we going to be which are going to be Jen’s at fans which are going to be more tech-savvy fans.
[28:33] And clubs at the moment of a very little for this these type of fans there is a lot of research out there that stipulates that that these fans probably will have will struggle watching.Watching a full game in front of a screen they will always have the tablet or phone,you know on one hand maybe need a second screen and to do to do something while they’re watching while they’re watching the game and this has to be addressed,some clubs tap into Esports which is very interesting interesting thing personally.I have to admit I’m not a big Esports user at the moment this because because I was never a big gamer but I believe,that for the younger generation this is how clubs have to set themselves up in a more digital way and offer more digital products for their fans to allow especially those who can’t be in the stadium.To to partake and and share their emotion.
[29:30] And that also answers one of the questions I would have had in store for you because I assumed since two years.From the fan are the any of the other monthly fee so basically you will take a small cut of these fees for your services I assume.
[29:53] The other way we haven’t really have to but we haven’t really sort of this out yet because we’re really just driven by the idea of increasing the fan base but yes there will be a commercial arrangement in place with the club’s that,allows us to cover our costs and and and make some money but our main.Idea is to to improve the fan engagement and prepare the clubs for the Next Generation,we are now recording for more than 30 minutes thank you very much for being so open so far with us we just talked about money and I would be curious how you guys are,one financed and second are you guys open for external Investments if an investor watches this.
The Startup — Funding
[30:41] We are about the company where are six people in the management team and we are nine staff in total.We are growing and we are hiring mostly it and and marketing staff.To get the message out in to build the it platform we have already collected investor money we had the second capital round one by the management team in one by business angels and we are seeking capital.Towards end of Q2 beginning of Q3 this year everybody would like to reach out for you,good to you can do this down here there’s not only your personal LinkedIn profile but also the company website what you guys are currently looking for I assume not only a lot of fans of theiractive football clubs but also people in the management of football clubs who would be open to work with you guys right.
The Startup — Looking For Football Clubs To Cooperate
[31:34] This correct we are we are already talking to a lot of Bundesliga clubs there is a lot of interest.I think this is because of two reasons first of all that the topic of digital business models in current times is is more relevant than ever,I think it’s always been on the agenda of football clubs but now it has become even more relevant because fans can’t attend in the stadium and the longer and clubs have to.Have to adjust so there is a lot of openness from the club’s we’re having a lot of very active conversations and the and secondly we have.An investor team and the management team that is very close to football and has a lot of brings up a lot of football background and with that a lot of football networkso we’re having having a lot of conversations but we of course always open for new conversations and if people listening and think this is interesting for them I’d be more than glad to.To have a conversation definitely.Great and everybody would like to learn more we’ll have you guys link down here people can just visit your website and then download your app is your app already available.
[32:50] We’re building the app building the app the app will be available in the App Store We Believe towards the end of the year there’s a lot of work to be done to get it right we will pay a lot of attention.Towards usability and and making it easy and intuitive to use the that’s why it’s going to take take some time.Okay so everybody who would like to download the app you guys will share it with,us and then we’ll disseminate it across all social media channels and add it here likely beginning of 2022.Alex was such a pleasure having you here people Mainemay not have noticed a few interruptions but we also will also edit out a lot of those interruptions meaning we recording now for more than 35 minutes and the actual interview will be shorter and this is due to all the restarts that we hadcueing due to the small interruptions thank you very much for sticking with me was plush talking to you and best of luck.
[34:00] Thank you yearn and it was a pleasure talking to you.
[34:05] Music.
[34:10] Interviews at www.starballroomdancestudio.com sharing is caring.
[34:17] Music.
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