At FANtium, athletes tokenize a share of their expected earnings and sell those as tokens to FANs. This gives athletes access to capital to help further their careers and connects them to their FANs like never before.
FANs purchase ownership in the athlete’s future earnings in the form of NFTs for a specific season with a season token or for an athlete’s career with a career token. Over the course of the season or career, FANs participate in the athlete’s real-world earnings.
It’s not all about money though, FANs become part of the athlete’s inner community, unlocking unique perks and experiences, connecting them to their athletes like never before.
What is the difference between season and career tokens?
Season tokens are launched by professional athletes already earning prize money. They enable FANs to own a share of their prize money and use the upfront proceeds to make valuable investments in their career, like hiring a fitness coach. Season tokens entitle holders to participate in the athlete’s next season’s earnings (typically prize money). A season token typically lasts from January to December.
Career tokens are launched by young up-and-coming talents who can use the capital to kick start their careers, and make it to the top. They are not earning enough prize money yet to cover their costs, like travel, a personal coach and tournament admissions. Career token holders will participate in the athlete’s earnings throughout their career (typically prize money and/or endorsement revenues). A career token typically lasts for four to ten seasons after the talent made it to the top.
How are token prices determined?
The valuation methods differ between professional athletes and talents.
Professional athletes
Season tokens launched by professional athletes, entitle FANs to ownership in the athlete’s prize money for one season.
Currently three valuation methods based on historic and current prize money data exist to determine the value of each token for the following season. The valuation method yielding the highest valuation will typically be applied.
(1) Three year average: this method is based on the average prize money won by an athlete in the last three years.
(2) Prior season’s earnings: this method is based on the prize money won during the season prior to the launch of the season token, i.e. the last fully completed season.
(3) Year-to-date earnings: this method is based on the accumulated total prize money won during the current season up until the token launch.
Example: valuation for an exemplary athlete to determine the
Talents
Career tokens launched by talents, entitle FANs to participate in a talent’s career earnings for more than a single season, usually between four to ten seasons after the talent made it to the top.
FANtium has developed the first proprietary model for talent valuations. The model is based on an analysis of the past 20 years in tennis and calculates the probability that a player will make it to the top. The primary factors are (1) the talent’s age and (2) the current (at time of valuation) ATP / WTA and ITF ranking.
After a provisional valuation is determined by FANtium, it is reviewed by our network of tennis experts taking into account additional qualitative factors, such as latest tournament results and personal setup (incl. coach, training facility, other team). Once the valuation is set, it is then reviewed and approved with the talent.
Both valuation approaches serve as starting points and will continuously evolve over time as we are able to collect more data. The valuation methods for professional athletes are currently mainly applicable to athletes that are up and coming. In the future the valuation will evolve to accommodate all athletes (e.g., athletes at the peak of their career). For talents, the model will evolve to also take into account softer factors beyond ranking and age.
What share of earnings do athletes offer on the platform?
The valuation and the amount of money an athlete decides to raise defines the share of earnings they offer on the platform. The maximum share in ownership both professionals and talents can sell is kept at 20 per cent.
What are the differences between the tiers that are offered?
Each athlete token collection has three tiers: Bronze (T1), Silver (T2) and Gold (T3). The key differences between the tiers are the percentage ownership per token, the corresponding price as well as the associated fan perks.
Ownership per token: each tier entitles FANs to a different percentage share of ownership in the athlete’s earnings; Gold tokens lend the highest ownership.
FAN perks: each tier offers additional non-monetary benefits; Gold tokens are usually connected to exclusive “money-can’t buy” experiences and limited in their supply while Bronze and Silver grant access to the athlete’s close community. The fan perks also vary from athlete to athlete, as everyone chooses them individually.
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