Imagine having acquired a financial interest in LeBron James, Peyton Manning or Roger Federer early in their careers.
A new company wants to make this fantasy a reality for the next generation of superstars.
On Thursday, Fantex Holdings will announce the opening of a marketplace for investors to buy and sell interests in professional athletes. The start-up, backed by prominent executives from Silicon Valley, Wall Street and the sports world, plans to create stocks tied to the value and performance of an athlete’s brand.
It will have its debut with an initial public offering for a minority stake in Arian Foster, the Pro Bowl running back of the Houston Texans. Buying shares in the deal will give investors an interest in a stock linked to Mr. Foster’s future economic success, which includes the value of his playing contracts, endorsements and appearance fees.
Buck French, the company’s co-founder and chief executive, said Fantex hoped to sign additional players in football and other sports, as well as expand into other talent areas like pop singers and Hollywood actors.
“Fantex is bringing sports and business together in a way never previously thought possible,” Mr. French said. “We have built a powerful platform to help build the brands of athletes and celebrities.” (...)
Nothing about Fantex is make believe. As of Thursday, investors can register with the company, finance their accounts with cash and place orders for shares in the Foster I.P.O. The offering plans to sell about $10.5 million worth of stock, representing a 20 percent interest in Mr. Foster’s future brand income. Mr. Foster will pocket $10 million; the balance will cover the costs of the deal.
Unlike many esoteric Wall Street investments that are available only to so-called high-net-worth individuals, the Fantex offering is available to United States residents 18 years and older, with a minimum investment of $50. There are some restrictions. For instance, investors with annual incomes of $50,000 to $100,000 may only invest up to $7,500 in the offering. Individual state securities laws might also place further limits and who can invest, Mr. French said.
Fantex will market the Foster I.P.O. in the coming weeks, offering 1.06 million shares at $10 a share. No one can own more than 1 percent of the offering, ensuring that it is available to a wide number of investors. If demand is less than the number of shares being offered, Fantex may cancel the deal.
by Peter Lattman and Steve Eder, NY Times | Read more:
Image: Eric Gay/Associated Press
A new company wants to make this fantasy a reality for the next generation of superstars.On Thursday, Fantex Holdings will announce the opening of a marketplace for investors to buy and sell interests in professional athletes. The start-up, backed by prominent executives from Silicon Valley, Wall Street and the sports world, plans to create stocks tied to the value and performance of an athlete’s brand.
It will have its debut with an initial public offering for a minority stake in Arian Foster, the Pro Bowl running back of the Houston Texans. Buying shares in the deal will give investors an interest in a stock linked to Mr. Foster’s future economic success, which includes the value of his playing contracts, endorsements and appearance fees.
Buck French, the company’s co-founder and chief executive, said Fantex hoped to sign additional players in football and other sports, as well as expand into other talent areas like pop singers and Hollywood actors.
“Fantex is bringing sports and business together in a way never previously thought possible,” Mr. French said. “We have built a powerful platform to help build the brands of athletes and celebrities.” (...)
Nothing about Fantex is make believe. As of Thursday, investors can register with the company, finance their accounts with cash and place orders for shares in the Foster I.P.O. The offering plans to sell about $10.5 million worth of stock, representing a 20 percent interest in Mr. Foster’s future brand income. Mr. Foster will pocket $10 million; the balance will cover the costs of the deal.
Unlike many esoteric Wall Street investments that are available only to so-called high-net-worth individuals, the Fantex offering is available to United States residents 18 years and older, with a minimum investment of $50. There are some restrictions. For instance, investors with annual incomes of $50,000 to $100,000 may only invest up to $7,500 in the offering. Individual state securities laws might also place further limits and who can invest, Mr. French said.
Fantex will market the Foster I.P.O. in the coming weeks, offering 1.06 million shares at $10 a share. No one can own more than 1 percent of the offering, ensuring that it is available to a wide number of investors. If demand is less than the number of shares being offered, Fantex may cancel the deal.
by Peter Lattman and Steve Eder, NY Times | Read more:
