Hi team,
Last quarter we discussed the necessity for a club to transform into a public good. Now the idea was right, that we have to have a membership system, so people can participate in the payed features so it can be sustainable. Now, lets take it a step further now, this membership system already exists and works well at the heart of each sports industry, run by Sports Federations. We will analyze what does it mean and how Ludus will come into play, as well as share some transparency in our goals through a simple roadmap.
What are Sports Federations?
- The federation sports system refers to the organization of sports at the national (or international) level, with each sport being overseen by a governing body known as a federation.
- The business model of the federation sports system is based on generating revenue through various sources to support the development and administration of the sport.
Lets deep dive into the Sports Federations business model:
What are the Federation revenue streams?
- Membership fees: International federations typically charge membership fees to national federations, which allows them to participate in international events and competitions.
- Sponsorship: International federations may generate revenue through sponsorships from global companies and brands that want to align themselves with the sport and reach a global audience.
- Media rights: Broadcasting companies may pay for the rights to air the international federation’s events, such as world championships and international competitions, which can generate significant revenue.
- Merchandising: International federations can sell merchandise such as branded clothing, equipment, and accessories to fans and participants around the world.
- Donations: Some international federations also rely on donations from individuals or organizations that are passionate about the sport and want to support its development.
Inside of federations, there exists tournaments and leagues, how do they work with the federations?
- Tournaments are events that are organized by a federation or other organization to bring together athletes, teams, and fans for competitions.
- Tournaments and sports leagues are additional components of the sports ecosystem that can generate revenue and support the development of the sport.
This means that there will be both Tournaments and Leagues, but Ludus will also work as a platform for other Tournaments and Leagues organizations that want to create their tournaments within the Ludus app, they will leverage the decentralized tools of distribution and organization in exchange of driving traffic to our environment and promoting Ludus Values of transparency automation and decentralization.
What are the expenditures?
- Administration: Federations, leagues, and tournaments have administrative costs associated with running the organization or event, including salaries for staff, office expenses, and legal and accounting fees.
- Event production: Federations, leagues, and tournaments need to plan and execute events such as tournaments, championships, and games, which can require significant resources such as venue rentals, equipment, and logistics.
- Athlete development: Federations may invest in programs to support the development of athletes at various levels, such as coaching, training facilities, and athlete support services.
- Promotion and marketing: Federations, leagues, and tournaments may spend money on marketing and promotion efforts to build awareness and interest in the sport.
What about their challenges, where are they adding value?
- Balancing revenues and expenditures: Federations, leagues, and tournaments need to balance their revenue streams with their expenditures in order to remain financially sustainable and support the growth of the sport.
- Competition with other sports: Federations, leagues, and tournaments must compete with other sports and activities for the attention and participation of athletes, fans, and sponsors.
- Compliance with regulations: Federations, leagues, and tournaments must comply with various regulations and requirements, such as anti-doping policies and safety standards, which can require additional resources and expenses.
- Cultural differences: International federations must navigate cultural differences and adapt to different countries’ laws and regulations.
- Global crises: Federations, leagues, and tournaments must be prepared to deal with unexpected global crises, such as pandemics or political unrest, which can impact the sport and its revenue streams.
Where does Ludus fit into the sports industry?
Ludus will attempt to revolutionize the system that is already in place and working, leveraging technology to bring transparency back to the business model and thus follow the same initial goal of sports federations: to support the development and administration of the sport.
As a result, becoming the first DASF (Decentralized Autonomous Sports Federation).
As we have discussed before, decentralization is a spectrum, our goal is to reach the healthy end of that spectrum, without sacrificing the centralization that is needed in sports.
Where will decentralization start?
In the use of smart contracts for distribution of value in the tournaments and leagues inside of the Ludus App.
What will be the first revenue stream of Ludus?
The sale of of 10,800 Digital Memberships from the Athletes collection.
How will the funds from the sale be used?
To develop Ludus 2.0, and mark the start of our Decentralization journey.
How will we achieve the decentralization and automatization within the Sports Federation?
We will use tools that help us organize and allow us to become more efficient.
KORIS DAC
What is it?
THE FIRST OPERATIONAL SYSTEM FOR
DECENTRALIZED AUTONOMOUS COMPANIES (DACs)
How does it work?
With KORIS, web3 companies have access to the following features:
- Treasury Management with Gnosis Safe infrastructure
- BLS Wallet Integration for gasless transactions
- Discord Integration to easily onboarded communities
- Task Management to help create, modify, and assign tasks to different individuals
- Payment Management to facilitate payments for the completion of tasks
- Governance Tools to manage internal organizational decision making
As of now KORIS is in its early development, but I am happy to share that Ludus has been accepted to join the Early BETA!
This will help us organize and get used to the tools for what is to come…
Ludus App 1.0
We have been through a lot, this quarter will mark the 4th year since the inception of the idea of Ludus. And in order to go forward, we must go back to our roots and get the MVP of the idea working again.
Here are some screenshots:
As you can tell, there is a lot of room for improvement.
tBut, again we are trying to prove the MVP, now that all the features work, we still have work to do, from full translation into integrating geolocation for match creation.
What are the Next Steps?
Roadmap
Metis DAOtribution
Happy to share that we will participate in the DAOtribution program from Metis.
And, this article will work as part of our proposal for the DAOtribution program, were if accepted we can gain up to $1,500/month for expenses that will be directed to the content creation of the brand through streams/podcasts, bug fixes of Ludus 1.0 and marketing and graphic designer, it may not seem like a lot but it will help us cover basic costs.
Economy Simulation
In the past I have shared this outline of how the economy inside will work for Ludus 2.0. Throughout the roadmap, before getting to Ludus 2.0, I have been working with machinations software to simulate a live version of both the Athlete sale and the Economy of Ludus 2.0.
Conclusion
We have been through a lot, both mistakes and accomplishments, and each time the fundamental pillars of the project get clearer and stronger, paving the way for what is to come. We are working hard in getting the MVP Ludus 1.0, back out for the public, focusing on adding geolocation and implementing traditional Web 2 log in options for getting international athletes and coaches trying out Ludus 1.0 before releasing the Athlete digital memberships which will fund the development of Ludus 2.0 with Web 3 capabilities. During bear markets, projects that buidl survive and make it through, making a stronger community and aiming for a better future.
-jose
