ESPN's Darren Rovell is reporting that Fantex Brokerage Services will soon start to sell shares of athletes' brands fans can purchase. The experiment begins with the Houston Texans' Arian Foster.
Fantex is paying Foster $10 million for a 20 percent stake in his future income, including contracts, endorsements and other related business revenue. The company will begin taking reservations in the next two 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.
It will work no differently than a basic stock. You put money in, and depending on how well Foster does, you will either rake in profit or lose big. Depending on this first-go, the company is planning on expanding. It seems like a reasonable investment. Most athletes are consistent, reliable brands. Think Aaron Rodgers, Peyton Manning, Tom Brady. Quarterbacks, with their longevity and profile, seem to be the safest bets. Although, much like the Dow Jones, you just never know. Imagine owning a couple thousand shares of Michael Vick in March of 2007. Talk about a market crash.