SimBull Sports Exchange

SimBull Sports Exchange runs a trading platform structured like a stock market for sports teams. Users create and fund an account, then buy and sell virtual shares of teams across the platform's SimNFL, SimNBA, SimMLB and SimCFB markets. Share prices move with market demand; as of August 2021 one review cited the Pittsburgh Steelers trading around $44 per share, ranking 19th most expensive in the SimNFL market.

Each virtual share is backed by a physical team pennant, which holders may redeem by submitting the share back to SimBull. The company positions this asset-backed structure as the reason the platform functions as an exchange rather than a gambling product, since users transact in a physical asset rather than wagering on the outcome of a specific event. Redeeming a share for its pennant ends the holder's eligibility for future win payouts.

Holders earn returns two ways: appreciation in the share price and "win payouts" credited when a team they own wins a game. Payout levels differ by league to reflect differing season lengths, with SimNFL and SimCFB wins paying $0.50 per share, SimNBA $0.10 and SimMLB $0.05. The Techstars company listing categorizes SimBull under blockchain, sports and stock exchanges, and describes it as a stock market for sports teams built on blockchain.

Business model

SimBull earns revenue from transaction fees and subscriptions on its trading platform. Trading fees were $1 per trade as of August 2021, and those fees fund the win payouts distributed to shareholders. Users can eliminate per-trade fees by buying a subscription priced at $3 per month or $25 per year.

Per-trade fees ($1 per trade as of August 2021) plus a paid subscription tier offering free trading at $3 monthly or $25 annually.

Traction

As of August 2021 the platform had live markets in four leagues (SimNFL, SimNBA, SimMLB, SimCFB) with per-team share prices and win payouts in operation. The Techstars listing records a headcount of 1-10 employees and a pre-seed stage.