FOX – WOFL
Stock in Athletes as an Investment
From betting on a game to Fantasy Football to now the opportunity to literally invest in your favorite football player. Jean Ann Dorrell appeared on FOX News Orlando to discuss the details and risks in this new type of investing.
Start-up Fantex Holdings is taking reservations for the initial public offering of more than 1 million shares in Pro Bowl Houston Texans running back Arian Foster. The shares are priced at $10 each. Investors will be able to buy and sell Foster’s shares which are expected to trade higher if Foster’s brand improves.
Some information from the Fantex website:
Is it real stock?
Yes, this is a tracking stock being offered pursuant to a registration statement that has been filed with the Securities and Exchange Commission (SEC). Every share you buy on Fantex represents ownership in the series of common stock of Fantex, Inc. that is linked to the economic performance and value of the brand of a professional athlete – such as income earned from contracts, endorsements and appearance fees.
What is Fantex, Inc.?
Fantex, Inc. creates a unique brand building platform for athletes to increase the reach and engagement of their brand. Fantex, Inc. signs a contract with an athlete to acquire a minority interest in their brand and builds a plan with a goal to increase its value, leveraging Fantex, Inc.’s marketing expertise.
Is it real money?
The dollars, accounts, trades, risks and rewards here are all very real. 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.
About Fantex, Inc. Tracking Stock.
To finance the acquisition of the contracts, Fantex, Inc. intends to offer equity securities in Fantex, Inc. and establish a tracking stock linked to the separate economic performance and value of the brand associated with the tracking stock – such as income earned from contracts, endorsements and appearance fees. Fantex, Inc. will typically attribute 95% of the acquired brand income under the brand contract to the tracking stock. In addition Fantex, Inc. will attribute to the brand certain expenses of Fantex, Inc. including in certain cases specified expenses related to other tracking stocks that may be issued in the future. Holders of shares of a tracking stock will have no direct investment in the business or assets attributed to the brand contract, associated brand or athlete. Rather an investment in a tracking stock will represent an ownership interest in Fantex, Inc. as a whole.