College sports fans who want a specific athlete to join or stay at their favorite school can now help influence the athlete’s choice by contributing money.
What was once considered taboo has become common with the launch of a new crowdfunding platform called Fanstake.
“We want to create a free market,” said Fanstake CEO Greg Glass. “What’s missing in NIL is making it fair, where athletes can see their value based on demand, and it makes it easier for fans to participate with no risk.”
Fanstake’s idea is a twist on fans contributing to booster-supported groups that pool money for name, image, and likeness (NIL) deals, which let athletes earn money from their popularity since 2021. NIL money has become a key tool in college sports recruiting and keeping players, and it will complement payments from schools starting next year.
Fanstake allows fans to help recruit and keep athletes by giving money to specific players. Fans can “stake an athlete” by choosing whether to contribute money to a recruit, potential transfer, or current player.
For example, a Nebraska fan might pledge $5, $10, or more for an athlete. If the athlete picks Nebraska and wants the pledged money, they would need to sign an NIL deal with Fanstake to follow NCAA rules. The NIL deals vary in amount, but all require athletes to promote Fanstake in some way.
If the athlete chooses another school, like Notre Dame instead of Nebraska, the Nebraska fans would get their money back, and the Notre Dame fans would fund the deal. No NIL agreement is made until the athlete is on the school’s roster.
Glass mentioned that athletes keep at least 90% of the money, and 3% is shared with teammates who also promote Fanstake. The rest goes to Fanstake.
Fanstake has mostly advertised on social media, and Glass said that since launching in November, over 5,000 fans have pledged more than $20,000.
Initially, only Division I football and basketball players, as well as top high school prospects, are up for bidding. Glass said they plan to expand to more sports and lower divisions soon.
Fanstake also announced Colorado’s five-star quarterback recruit Julian Lewis as its first brand ambassador. Lewis received an ownership stake in the company as part of his NIL deal.
A federal court ruling in Tennessee last February allowed Fanstake to start competitive bidding for athletes. The court ruled that the NCAA’s rule limiting NIL deals for recruits prevented athletes from negotiating and understanding their true NIL value.
“We’ve reached a point, especially with the federal injunction, where athletes need to negotiate before choosing a school, so they know the opportunity at schools like Nebraska or Notre Dame,” Glass said.
“Fanstake helps with that. We don’t make an NIL deal until they are at the school, but we let the fanbases show the athlete the demand and how much money might be available.”
