Well, you can’t exactly own running back Arian Foster of the Houston Texans, but you can have a piece of him.
ESPN.com reports that a company called Fantex is paying Foster $10 million for a 20 percent cut in his future income, including contracts, endorsements and all other business revenue. Fantex will begin taking reservations in the next couple 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, the sports network says.
Fantex’s initial public offering will be set at $10 a share, with 1.055 million shares being offered.
“Fantex is an all-new marketplace where you can buy and sell shares linked to the value and performance of the brand of an athlete — It’s real money, real investments, and a real athlete’s brand. However, because you can only trade Fantex, Inc. tracking stocks on this platform, there is no assurance as to the development or liquidity of any trading market,” the San Francisco-based company’s website says.
ESPN.com likens the transaction to a form of fantasy sports.
Fantex CEO Buck 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.”
A gift-wrapped bit o’ running back sounds like a touchdown of a holiday present for a football fan. Better still, it’d be one of those gifts that look expensive when you’ve really only spent $10. And owning a football hero would certainly ramp up the ol’ diversity level in the portfolio.
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