October 18th, 2013
09:59 AM ET

Own Stock in Your Favorite Player

Ever wanted to share in your favorite athlete's success?

Soon, that dream will be a reality thanks to Fantex Holdings, which, according to The New York Times' Peter Lattman and Steve Eder, "will announce the opening of a marketplace for investors to buy and sell interests in professional athletes."

The new forum will open this fall with "a public offering for a minority stake" in Houston Texans Pro Bowl running back Arian Foster. Those who invest in shares will receive interest from a "stock linked to Foster's future economic success."

According to The Times' report, the player's financial success will be determined by contracts, endorsements and appearance fees.

SEE FULL STORY AT THE BLEACHER REPORT

CNN Chief Business Correspondent Christine Romans breaks down the math.

“Foster gets 10 million bucks, right? Investors then get 20% of his future income,” Romans says.

“You're literally buying stock in a sports star and you’re betting, essentially, or investing, that he's going to have a long and lucrative career.”

What do Foster and other potentially interested athletes get out of this?

They get the money up front and they get kind of the partnership with Fantex, I guess, to build a brand and build a brand that’s going to get money and recognition off the course, or court or the field.

However, there are 37 pages of risk factors to consider according to the company’s S-1 Registration Statement with the U.S. Securities and Exchange Commission (SEC), Romans reports.

“We'll see if they try to get more people on board and they actually have an exchange where there are a lot of different athletes,” Romans says.

“It’d be like fantasy football, only with real money and you're investing it.”

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soundoff (2 Responses)
  1. Kisha Cox

    Conversation started today
    Layla Amatullah Cox
    9:39am
    Layla Amatullah Cox
    This message is to the gentleman named Chris Cuomo, this is regarding the comment you made in reference to Italians and Irish individuals facing racism. With all due respect i don't contest that Irish and Italians faced racism in America but you cannot compare that to the situation that the Chinese are facing or reference Italians or Irish people as facing explicit racism in comparison to more visible minorities such as, blacks, latinos, natives or arabs. Just didn't feel it was a justifiable or fair comparison, Italians and Irish people are not visible minorities and haven't suffered any explicit racism in recent years like that of the chinese or people of other ethnicities who go through it on a regular basis.

    November 12, 2013 at 10:08 am | Reply

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