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.
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.”