> For the complete documentation index, see [llms.txt](https://tiento-labs.gitbook.io/tiento-labs-white-paper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tiento-labs.gitbook.io/tiento-labs-white-paper/getting-started/formation-clubs-and-tiento.md).

# FORMATION CLUBS & TIENTO

Clubs are the foundations where athletes are nurtured and developed into stars.

**TIento** provides a groundbreaking financial platform for sports clubs and institutions, linking them with a global network of micro-investors. This approach helps clubs generate income by monetizing their player development rights, fostering the growth of young talent.

## DEFINITION OF A TRAINING CLUB

* A Training Club is a sports organization dedicated to developing football players aged 12 to 23. These clubs play a critical role in shaping athletes both on and off the field.
* Under FIFA’s training compensation guidelines, these clubs are entitled to financial rewards when players they’ve developed are transferred to new teams, acknowledging their contribution and investment in the player’s growth.

## DIGITAL ASSET MANAGEMENT&#x20;

\
Training clubs possess two key rights related to the development of players within their organization: the Solidarity Mechanism and the Training Compensation.

* Training clubs possess two key rights related to the development of players within their organization: the Solidarity Mechanism and the Training Compensation.
* **TIento** specializes in tokenizing the FIFA Solidarity Mechanism, a right that grants clubs 5% of the transfer value when a player is involved in an international move between the ages of 12 and 23
* **TIento** specializes in tokenizing the FIFA Solidarity Mechanism, a right that grants clubs 5% of the transfer value when a player is involved in an international move between the ages of 12 and 23.
* By working directly with the training club, **TIento** identifies the portion of the contract suitable for tokenization and public offering.
* The tokenized amount is customized for each player based on their time spent at the club. This process allows the club to split the asset into smaller investment shares, giving more investors the opportunity to participate in sports talent funding.

## THE USE OF RAISED FUNDS

* The funds generated from token sales are directly allocated to the club responsible for the player's development.
* The club is contractually obligated to reinvest the funds into training and development programs
* **TIento** oversees the entire process, verifying compliance and keeping the investor community informed about how the resources are being used.

## THE ADVANTAGE OF TRAINING FORMATION CLUBS AND INSTITUTIONS&#x20;

* **TIento** offers a forward-thinking financial model tailored for sports institutions, providing clubs with access to micro-investors through blockchain technology. Key benefits include:

## THE POSSIBILITY OF GLOBAL ESCALABILTY AND EXPANSION

\
Clubs can present their tokenized assets to an international audience, removing geographic limitations and expanding their supporter base.

<figure><img src="/files/iL3Wib5cJDyd1i07MMDG" alt=""><figcaption></figcaption></figure>

## RISK MANAGEMENT PROTOCOLS&#x20;

* Tokenizing player development rights helps clubs mitigate the risk of uncertain future earnings by sharing the potential gains with investors.

## UPFRONT LIQUIDITY&#x20;

* **TIento** enables clubs to access a portion of their expected training compensation upfront, offering financial stability without waiting for future player transfers.

## ASSET GROWTH AND DIVERSIFICATION

* Tokenizing player development rights creates a new digital asset on the club’s balance sheet, increasing its value and opening additional revenue streams.

## THE REAL BRIDGE FOR ACTIVE FAN PARTICIPATION

* **TIento** also empowers clubs to create and monetize unique experiences for their supporters, offering exclusive products and experiences not commonly available.

<figure><img src="/files/JzUI7YlGmkm7Bf2cVVup" alt=""><figcaption></figcaption></figure>

<div data-full-width="true"><figure><img src="/files/tkLinDi1T24TR1Ik0Kia" alt=""><figcaption></figcaption></figure></div>


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