ABSTRACT
Crowdfunding is becoming a new alternative for revenue generation. Over the last two decades, sport properties, such as individual athletes, sports teams, and organizations, have gradually utilized various models of crowdfunding to raise funds to support their activities. This chapter begins with an explanation of crowdfunding and its related terms, including projects, funders, creators, and platforms. Four major crowdfunding models that are commonly adopted in crowdfunding campaigns are discussed (i.e. donation-based, reward-based, equity-based, and lending-based), along with their unique features and intended purpose. The motives why creators and funders want to get involved in crowdfunding campaigns are examined, along with the legal constraints of using crowdfunding as a fundraising tool. The chapter devotes a section to the different ways that sports properties use crowdfunding. The criteria used in selecting an appropriate crowdfunding platform are explained, as well as the actual process, specifically, the three phases of a crowdfunding campaign and the assignments that need to be accomplished in each phase. The chapter ends with a brief assessment of the principals involved in designing effective crowdfunding campaigns.
