The FanCave Deal: How Payment & Pledging Work for Athletes/Fans

The FanCave Deal: How Payment & Pledging Work for Athletes/Fans

5/28/2024



Last Updated: 05/15/2024

Overview: The FanCave Deal

What is FanCave (Learn more here)

FanCave is the first, online, public collective. Just like private collectives, FanCave proposes ‘NIL Offers’ to college athletes (recruits, transfer portal) from a pool of funds provided by fans. But—unlike collectives—FanCave is transparent, athlete-friendly, and built for all athletes+fans.

The FanCave NIL Deal

⭐ Once a Verified FanCave Athlete enrolls, a formal NIL deal is created by FanCave. The value of the FanCave NIL Deal is 90% of the total monetary amount of NIL Offers pledged by the enrolled school’s fanbase. This is paid after athlete completes quid-pro-quo requirements.

  • Fans purchase “Coins” from FanCave, and pledge an ‘NIL Offer’ with these Coins to athletes
    • When Coins are purchased, fans’ payment method is charged instantly and all Coins remain in FanCave
  • When an athlete signs their NLI (National Letter of Intent) and enrolls
    • Athlete ‘claims’ the NIL Offer pledges from their enrolled school’s fanbase, and the FanCave NIL Deal will begin processing (see below)
    • For all other fanbases, Coins (including fees) are re-credited into their FanCave Wallet
  • The FanCave NIL Deal is then offered to the athlete, where they can choose to accept/decline.
    • The monetary amount of the deal is 90% of the signed fanbase’s pledged NIL Offers. FanCave earns 7% + 3% for processing fees.
    • If accepted:
      • Digital quid-pro-quo is created by the athlete for each fan who pledged
      • Payment begins on day 1 of enrollment
      • Total payment sum is paid out evenly over twelve months
    • If declined:
      • Fans are reimbursed via Coins in their FanCave Wallet

Example

  • 5-Star WR Joe Joseph is between 5 schools during his recruitment process. Leading up to commitment day, fans from all 5 schools pledge NIL Offers to Joe contingent on him enrolling at their school.
  • Joe commits to Tennessee. After Joe signs his NLI and enrolls…
    • Fans of the non-committed schools (Texas, Arkansas, SMU, Toledo) are re-credited their pledge amounts to their FanCave Wallet.
    • Pledge amounts from the committed school (Tennessee) are claimed, and a formal NIL Deal is created by FanCave for the monetary value NIL pledges from Tennessee.
  • After completing quid-pro-quo with the FanCave NIL deal, Joe will receive 90% of Tennessee’s total pledged amount: $7,830
    • $7,830 = 90% of $8,700 = athlete NIL deal amount
    • $870 = 10% of $8,700 = processed by FanCave (payment processing expenses, fees, FanCave partners, etc.)

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Additional Terms

  • The athlete must claim & verify their FanCave profile prior to signing for the NIL deal to be created. If not claimed, the deal is forfeited and all fans are reimbursed via Coins in their FanCave Wallet
  • FanCave prioritizes complying with state law & NCAA regulation regarding NIL payments. If necessary, FanCave reserves the right to change, update, or void this agreement in order to remain compliant and for the safety of our athletes.

Want more info? Read below, or check out FanCave’s full FAQ: https://www.fancave.me/blog/faq


FanCave Deal for Athletes - FAQ

Why use FanCave?

Maximize Your True NIL Value.

  • ✅ Compliant: Latest NCAA regulation lets you assess NIL offers prior to signing
  • ✅ Safe: No hidden fees, no contracts, and trustworthy payment processing
  • ✅ Maximize: Understand your NIL earning potential from your future fanbases

How do I sign up and get verified?

  • Claim your profile.
    • FanCave preloads all high school recruits (3 star and above) and transfer portal entrances
    • Sign up and find/claim your profile here: https://fancave.me/athletes
  • Can’t find your name? We’ll get you setup! Email support@fancave.me

How do I get deals on FanCave?

  • In your FanCave profile, simply select ‘Open Your Recruitment’—that’s it!
  • Once verified, your personal recruitment page will go live, and any fan can begin creating NIL offers for you to come to their school

How do I claim my pledged NIL offers?

  • Once you sign to + enroll at a school, FanCave officially creates an NIL offer on behalf of all fans’ pledges
  • Only verified FanCave athletes can claim their FanCave NIL offers. See above
  • Have you signed? Tell us!
    • Add your new school in your FanCave profile settings
    • Email us @ support@fancave.me
    • Or, text the CEO at (650) 977-1086

What does the FanCave NIL offer look like?

  • You will receive an official NIL offer from Team FanCave, representing the fans that pledged to you, by which you can accept/decline
    • The monetary amount of the deal is 90% of the signed fanbase’s pledged NIL Offers. FanCave earns 7% + 3% for processing fees.
  • If accepted, you’ll be asked to create digital quid-pro-quo for the fans’ offers based on different offer tiers
    • Examples include: custom text message, digital thank-you card, personalized video, etc.
    • Quid pro quo requirements vary based on: pledge amount, total # of fans, and pledge amount per fan
    • We work with you to make this painless and fun!
  • The deal officially “transacts” the day you enroll at your university. FanCave digitally distributes your quid-pro-quo to fans, and payment begins (see below)

How do I get paid from the FanCave NIL offer?

  • Once you’re verified, accept the offer, and complete quid-pro-quo—payment begins (see above for all)
  • Payment is distributed evenly over the course of 12 Months
    • For example, if your FanCave NIL Offers totaled $120,000—you can expect to receive $10,000 per month paid out on the 1st of every month
  • Compensation is paid out by our payment processor, Dots, and by using FanCave, you agree to Dots Terms and Conditions
  • Further terms you consent to for using FanCave:
    • You (athlete) must remain enrolled at the school in which the offer is created to continue receiving payment. For example, if you transfer after 3 months, you forgo the final 9 months of payouts)
    • You (athlete) are fully responsible for tax implication that payment from FanCave may cause

Am I taxed based on what I earn from the FanCave NIL deal?

  • Please be advised that FanCave is not responsible for the tax implications of any income earned through our platform. It is the sole responsibility of users to understand and comply with their local tax laws and regulations regarding the reporting and payment of taxes on their earnings through FanCave.
  • We strongly recommend consulting with a tax professional to ensure proper handling of your tax obligations.

FanCave Deal for Fans - FAQ

Why use FanCave?

Build Your Dream Team.

  • ✅ Compliant: Latest NCAA regulation lets you assess NIL offers prior to signing
  • ✅ Transparent: All funds, fees, and athlete compensation is open to the public
  • ✅ Secure: Bids remain in FDIC-insured storage, and are re-credited if your recruit doesn’t enroll at your school

How do I sign up and make offers?

  • Create a profile at www.fancave.me/
  • Load your FanCave Wallet by purchasing Coins
  • Use those Coins to pledge to any athlete on FanCave!

How do Coins work?

Coins are used as a way to pledge an NIL offer to potential recruits. You purchase Coins before making any pledges, and you are instantly charged to your payment method. See FAQ for full answer: https://www.fancave.me/blog/faq

How and when do athletes claim my pledged NIL offer?

  • When an athlete signs and enrolls
    • For the signed school’s fanbase, Coins are locked & an NIL deal is created for the athletes
    • For all other fanbases, Coins are re-credited via Coins in their FanCave Wallet
  • Before an athlete enrolls, they must claim & verify their FanCave profile
    • If not claimed, they forfeit the deal and fans are re-recredited via Coins in their FanCave Wallet

Where do my Coins go?

After pledging to an athlete, Coins are temporarily held by FanCave until the athlete signs. If they sign to your school, the deal is transacted. See FAQ for full answer: https://www.fancave.me/blog/faq

Can I cash out of my Coins? I.e., get a refund?

No. Once Coins are purchased, they fully remain in FanCave. However, you are 100% re-credited via Coins in your FanCave wallet if an athlete does not accept your NIL offer. Questions? Reach out to support@fancave.me.

What does the FanCave NIL offer look like for the athlete?

  • Fans receive a unique, digital quid-pro-quo activity from the athlete you pledged to. This is the ‘NIL Offer’ you created
    • Examples include: custom text message, digital thank-you card, personalized video, etc.
    • Quid pro quo requirements vary based on: pledge amount, total # of fans, and pledge amount per fan

When does the athlete get paid? What happens if they transfer?

  • The deal officially “transacts” the day they enroll at the university. FanCave digitally distributes quid-pro-quo to fans, and payment begins for the athlete
  • Payment is distributed evenly over the course of 12 Months
    • For example, if your FanCave NIL Offers totaled $120,000—you can expect to receive $10,000 per month paid out on the 1st of every month