Recently I came across a few articles about Houston Texans’ running back Arian Foster, a pro-bowler and integral instrument in the franchise’s offense, selling 20% of his future income in exchange for 10 Million dollars to Fantex, Inc. Fantex will then create shares of Arian Foster, and will offer his future incomes as a publicly traded asset. While he will not be listed in one of the major “playgrounds” that we learned about in class, NASDAQ or NYSE, Fantex has discussed this opportunity with the United States Securities and Exchange Commission. The IPO for one share of Arian Foster’s future incomes is $10/share with 1,055,000 shares being initially offered. This is a very interesting business opportunity, as investing in professional athletes could no doubt interest the large market of sports fans across not only North America, but the entire world. Shareholders would receive dividends from the stock from the different methods in which Foster creates income for himself. These include new contracts, sponsorships, as well as public speaking and cameo appearances in television and movies. While interesting, Arian Foster and his future incomes are in no way a “Blue Chip” company, and the risk of investing is very high. Fantex has outlined these risks of investing on their website. Risks such as on-field performance, off-field behaviour, and of course age and injuries could all limit Foster’s ability to create income. Of course, the risks could come with high rewards. Imagine for a moment that you had invested in Michael Jordan after his rookie season…There are big dividends to be earned. Fantex announced plans with San Francisco 49ers’ tight end Vernon Davis for a similar IPO.
(Arian Foster’s Brand Video)
Works Cited
“Fantex Arian Foster.” Fantex Brokerage Services. Fantex, Inc. 17 Oct. 2013. Web. 7 Nov. 2013
“Fantex Arian Foster Brand Video.” Dir. Fantex Brands. Perf. Arian Foster. Fantex, Inc. 2013. Film.
Heitner, Darren. “Will You Soon Be Able To Buy Stock In Arian Foster?” Forbes. Forbes, 17 Oct. 2013. Web. 7 Nov. 2013.
Kim, Susanna. “What Will Happen to Houston Texan Arian Foster’s IPO After His Back Injury?” ABCNews. ABC, 4 Nov. 2013. Web. 7 Nov. 2013.