If you've ever watched a pro ball game and said to yourself, 'I
wish I could buy stock of that player, I would be rich', you may
soon be in luck.
Fantex has created an
trading platform that looks to allow you to do just that in various
The company even has one star athlete, Arian Foster (Running Back
for the Houston Texans), under contract in this program, having
acquired a minority stake in his 'Brand Income'.
How it Works
Fantex has a contract with Arian Foster for one-fifth of all his
income from endorsements and his NFL contracts for the rest of his
life. In exchange for this, Foster receives $10 million, not too
shabby for someone who is going to average about $8.6 million a
year on his current contract, and for someone
who made about half a million in 2011
It should also be noted that Foster currently has several
endorsement deals, including ones with
Under Armour (
, and a unit of
in Texas. Foster also has a couple other deals with various sports
related retailers, as well as a few small other miscellaneous
businesses, and these look to be included in the program too.
However, the contract does exclude any income that Arian Foster
receives from work in motion pictures, television, and music, so
long as he isn't playing himself or a football player. This looks
to come into play pretty soon as Foster is actually scheduled to
in a movie due out in 2014
with Kevin Costner as the lead.
The real money looks to come from the trades though, as Fantex will
get a 1% commission on all buys and sells, so maybe the best way to
make money on an athlete IPO is to get in on Fantex, thanks to
these hefty fees.
Still, if the idea catches on, there could definitely be money to
be made by investing in emerging stars, or players who are primed
to bounce back from a devastating injury. Also, it does help
players to take out some of the risk from their lives, as it gives
them a lump sum payment regardless of what happens in the rest of
And for an undrafted player like Foster who has made a splash in
recent years, this definitely could have played a role in his
becoming the first player 'traded' on Fantex, although there could
be some interest from others as well.
"Fantex represents a powerful new opportunity for professional
athletes, and I wish it were available during my playing days,"
said John Elway
, a member of Fantex's board, and former star Quarterback for the
But what do you think about this Athlete IPO idea, and who
would you want to invest in?
I think it is an intriguing idea, but the fees are quite high for
trades. If they can build up a nice lineup of athletes, I could
definitely see some interest, especially by die-hard fans.
Personally, I'd go for a basketball player instead, careers seem to
be a lot longer, and branding potential seems to be greater in that
market. However, a player like Peyton Manning with his amazing year
so far and those ubiquitous
Papa John's (
commercials, could also be an interesting play…
Let us know what you think about an Athlete IPO in the comments
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