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Very few tech startups are able to generate a flurry of cease-and-desist letters from major colleges and universities, but Chicago's FanPay, run out of the local hub 1871, is a unique case.
"I understand why these colleges are reaching out,” said co-founder Tony Klausing with characteristic positivity. “But we consider FanPay to be an immediately viable solution to the problems facing college sports. If people don't want college athletes to have money after they graduate, they don't have to use FanPay."
Those who do choose to use FanPay have a channel through which they can make financial donations to their favorite college athletes, who are currently not allowed to receive compensation for their efforts, to be dispersed upon graduation. This might eventually provide athletes some balance in a highly demanding pursuit that reaps mammoth profits for the programs they play for. It also incentivizes completing four years of school instead of going the increasingly well-traveled Kobe Bryant route and turning pro as a teenager.
As a native of Louisville who attended Notre Dame, Klausing often has NCAA sports on his mind. He also has ample experience building crowdfunding software. The idea for FanPay was kicked around for some time, but really came together around the August 8, 2014 verdict in O'Bannon v. NCAA. “The general public's opinion is clear on the matter,” said Klausing. “College athletes deserve to profit off their names in some way."
In case FanPay does not reach its sought-after detente with the NCAA, Klausing and his team (including co-founder and Bitcoin community heavyweight Joey Rich) are prepared to accept cryptocurrency, completely anonymize donations, and fight for their idea in court. But Klausing said he hopes it doesn't come to a slow, grueling, bureaucratic legal melodrama.
“We have a basic philosophical problem with that,” he said. “We think the solution will probably come from the schools, the fans, all working together on a platform like FanPay to create a collaborative solution."
