[Iwinyourmoney]

For years, private investors have quietly backed up-and-coming boxers, tennis players, horses and golfers, but now the public is getting a chance to really own a piece of an athlete.

On Thursday, Fantex Brokerage Services announced its intention to allow fans to invest in stock related to the performance of an athlete's brand.

The company said its initial public offering will be for Houston Texans running back Arian Foster. Fantex is paying Foster $10 million for a 20 percent stake in his future income, including contracts, endorsements and other related business revenue. The company will begin taking reservations in the next two weeks and could be selling shares of Foster in as soon as a month depending on demand and progress with the Securities and Exchange Commission.

It's much like fantasy sports, except fans will be trading on Foster's business value. If he does well on the field and companies become more interested in Foster as an endorser, his stock might go up. Fans can then buy and sell shares, with Fantex taking a commission. The company says it is hoping to acquire a future stake in athletes but does not have any other deals finalized at this time.

"Fantex is bringing sports and business together in a way never previously thought possible," CEO Buck French said in a statement. "By building a marketplace that allows customers to buy shares in a tracking stock linked to the value and performance of an athlete's brand, Fantex is enabling a new level of brand advocacy through ownership."

French told ESPN.com that the company would collect 20 percent of what Foster makes going forward, including money made from the five-year contract with the Texans he signed last season that guaranteed him $20.7 million. Foster also will make money on his endorsement deals with Under Armour and Fuse Science, and he recently acquired a stake in chia bar company Health Warrior.

Fantex's success could depend on how many athletes are willing to give up a piece of their future income and how early in a career Fantex can secure a deal. French disagrees with the latter point, saying there are some athletes who would be good to invest in for their post-career businesses.

Athletes who have had investors buy a stake in their future income include boxer Sugar Ray Leonard and golfer Rich Beem. The most famous investors in horse racing are likely the group of everyday people who owned Funny Cide, who won the 2003 Kentucky Derby and Preakness Stakes.


*from ESPN

[jjgold]

Guy will be out of the league in three years


Also by then He will have 10 kids

[EaglesPhan36]

I just read a story about this. Interesting angle. It's really legalized gambling on a single player and their career, just like the stock market on companies.

It will be interesting to see if other athletes get on board with this and sign up.

The most interesting thing is you bank on the athlete + their endorsement ability.

Adding up athlete brand value.
An athlete’s brand value is made up of certain income generated throughout both their playing and post-career. This includes income from items such as playing contracts, endorsements, and appearance fees, a percentage of which Fantex, Inc. is entitled to receive under the brand agreement. For more specifics, please review the prospectus for the tracking stock.

[BigDeem5]

Huge advancement in sports business.

In talks w prestigious men in the industry, this could get big

[tony_come]

Lose money

[Big Bear]

is he still a vegan?

[konck]

I think they tried to do this years ago it never worked out

[Monitor-Tan]

Investing in a RB is the stupidest thing to do. The ONLY exception is AP right and he's extremely special.

[ZetaPsi808]

foster is already washed up

whoever chose him is retarded

[Blax0r]

Huge advancement in sports business.

In talks w prestigious men in the industry, this could get big

This.

HUGE step for legalizing sports betting.

[pavyracer]

Guy will be out of the league in three years


Also by then He will have 10 kids

He only has 1 now so he would better get busy if he wants to have 10 kids in 3 years.

[nvrlose37]

Foster already has endorsement deals on top of his contract. They paid $10 mil for 20%, does noone here think Foster is at least good for $50 mil over the rest of his career?

[Gonz312]

Can we short these stocks?

[jarvol]

They paid $10 mil for 20%, does noone here think Foster is at least good for $50 mil over the rest of his career?

No not really. Good deal for Foster.

[InTheDrink]

This is fukkin retarded


You pay a guey guaranteed $ up front and that's just less incentive for him in the future.

We all know what happens when gueyss get big contracts. This is similar except worse because now they're really slaving for someone else.

Wait til someone does a deal like this and then "holds out" on his owner.

[Killer_Demo]

lawsuit waiting to happen

[d2bets]

What could possibly go wrong?

And what are the assurances that investors will get an accurate report of all of his income? Is this gross or net? What if he gets sued, gets divorced, etc.? Imagine the mess if he dies. Is this for the rest of his life or a finite period?

The details of this would have the excruciatingly complicated.

[High3rEl3m3nt]

Can we short these stocks?

I am sure some Texans homer will bite. Maybe one of Opie's Texan frenemies will be hamburgish enough to comply. I'm in if so.

[InTheDrink]

d2er gets it


This basically boils down to slavery

[thunderous]

What could possibly go wrong?

And what are the assurances that investors will get an accurate report of all of his income? Is this gross or net? What if he gets sued, gets divorced, etc.? Imagine the mess if he dies. Is this for the rest of his life or a finite period?

The details of this would have the excruciatingly complicated.

1) Of course you would get an accurate report
2) He has to take care of personal matters such as settling lawsuit, paying Child support etc with his 80%. It's like me having a 20% partnership in your business. The Company is making 2 Mil a year, not you. You are getting 80% of it and with that 80% you fulfill your obligations.
3) Well if he dies and the company can't generate any income then well the loss is yours. But as long as the Corporation generates revenue you get a cut of it, its called residual income. Example: Beatles, Elvis, MJ and many many more....these guys are making more today then they did back in the day.
This whole thing is plausible and in the future you will see things like this more often.

[BriGuy]

Interesting idea, and I do not think it constitutes gambling - at least not any more than playing the stock market, buying an insurance policy, or taking out an annuity is considered gambling. I don't see anything illegal with a company giving someone $10 million right now in exchange for 20% of all future earnings. And if we accept that practice as legal, then certainly there's nothing wrong with spreading that risk around among multiple shareholders. But I would definitely have to read the fine print. For example, do we get 20% of his income before he pays his agent or after? What recourse do we have to guarantee he "declares" all of his income (instead of taking money under-the-table from, say, an autograph session)? etc....

[EaglesPhan36]

https://fantex.com/fantex-arian-foster-266729

So Arian Foster's IPO was 10.00 per share. Is he worth a $1 now? Good time to buy low.

[ridik01]

Stupidest thing i've seen in a while!

[EaglesPhan36]

Vernon Davis is now available
http://www.mercurynews.com/business/...ght-end-vernon

[rm18]

What a scam the guy is finished