NFL player Arian Foster to sell stock in himself, as he becomes the first athlete to go by the way of an IPO. Fantex Inc, a business formed to track the amount of revenue that athletes and entertainers generate has filed documents for the Arian Foster stock venture, according to “Fox and Friends Weekend” on Saturday morning Oct. 19.
Does that mean that there will be an Arian Foster stock ticking across the screen of the stock market? No, this is a stock that will be a web only traded and listed stock, this will not appear on a major stock exchange. This will be done through the website of affiliate Fantex Brokerage Services (FBS), according to Reuters on Oct. 17,
Fantex will undertake a $10 million IPO of Foster, who is the Houston Texans running back. Foster is the first client of Fantex, but their goal is to take on more.
FBS will set out to sell 1.055 million shares at a fixed price of $10. Foster will get $10 million of the gross proceeds in exchange for a 20% split of his brand income for the future. This includes endorsements and another contract, if he is offered one when this five-year contract is up. (He is currently in his second year of the five-year contract.)
This could be a risky venture even if Foster was the greatest athlete in the world. NFL players could be just a tackle away from an injury or a season away from a bad performance record on the field, which would make the stock worthless.
On the other hand if Foster turns into another Joe Namath, Larry Bird or Magic Johnson-type superstar, his brand earning potential can go on for his lifetime.
Think about the entertainment and gambling aspect of buying stock in your favorite athletes. Every sports fan in front of the TV on Sunday afternoon with their friends will proudly be watching the player they “own stock in.”
This adds a great gift idea to the birthday and Christmas gift list for the sports fans out there. Millionaires and Billionaires alike will most likely have a portfolio of many athletes names in stocks if this venture ever takes off.
Can you imagine what your stock would be worth if this was available when a young Tiger Woods took to the course? As far as today, with Foster being the first and only one yet that will be available for investment, the price is right. At 10 bucks a share, it’s not like you have to sell the farm to invest.
Because this stock contract with Foster has to do with “future” deals he signs for the stock to gain worth, Fantex needs for him to sign at least one more multi-year with an NFL team after his five-year contract is up.
He is only in his second year of that contract and he is 27-years old. For the Foster stock to prosper, he will have to be on top of his game until he is nearing his mid-30s. So what do you think, is Foster someone you’d put stock in, literally?
This could actually be fun taking stock out in a young athlete that looks promising before they hit the big time. It would be like going through their career with them because you are invested. Fantex might just have something here, so what do you think?