now yall can ACTUALLY spend money on your shares.

http://www.slate.com/blogs/moneybox/2013/10/17/arian_foster_shares_buy_a_piece_of_a_pro_athlete_s_career.html

These Guys Want to Sell You Stock in Arian Foster
By Matthew Yglesias

As implementation of the Jumpstart Our Business Startups Act ("JOBS Act," get it) continues rolling forward there's little evidence of job-creating business startups being jump-started, but breaking down the old accredited investor rules should be enormous stimulus for gimmicky financial products. To wit here is an S-1 filed with the Securities and Exchange Commission announcing the intention of selling shares in Houston Texans running back

This is structured as a stock offering but it's actually more like a loan. Imagine some billionaire loaned Arian Foster $10 million and in exchange Foster promised to pay the billionaire 20 percent of his future earnings. The idea basically is to securitize that $10 million, so that tens or hundreds of thousands of small investors can each own a piece of it. Unlike a real equity investment, the owners of the shares will have no decision-making authority over Foster.

It's easy to see why that might be attractive to Foster. Professional athletes have mass followings ("fans") who are often not only willing to invest large amounts of time in watching their favorite players perform, but to spend non-trivial sums of money on emotionally affiliating with key players through purchases of jerseys and branded apparel. People also spend large sums of money to get good seats to see live performances of the games, in part for the view but again largely for the emotional experience of shared fandom. For much the same reason that I paid money for a jersey in a rather ugly blue-and-orange color scheme that had Tyson Chandler's name on it, an Arian Foster fan might be willing to overspend on a securitized loan to Arian Foster. The calculation of the company offering the security is that fans are going to be willing to overspend so much on this that there will be surplus left over for them to feast on.

And they might be right! This is a dumb investment, but people make dumb investments all the time. And obviously people love to gamble on sports. So this could totally work. But logically speaking, it really would make more sense to do offerings of rookies who have much more need to hedge against injury risk.

There Is a Reason Why Kubiak Wants Foster & Tate to Split Carries........damn Vex.

WHAT'S GOOD *****? What's REALLY good?!?!????!!! Ha HA!
http://40.media.tumblr.com/d8e2daf9f3f37244cd05436bcdf05973/tumblr_mt4qibKq4c1rgam01o1_1280.png

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"though time has passed, im still the future" (c) black thought

And you will know MY JACKET IS GOLD when I lay my vengeance upon thee.

This plan would work a lot better for rookies and younger players.

Man I would lose so much money on some dudes.

A Second N.F.L. Player Signs Public Offering Deal
October 31, 2013, 1:06 pm
By PETER LATTMAN

Fantex, the company that introduced the first initial public offering for an athlete, has signed its second client.

The company said Thursday that it had reached a deal with Vernon Davis, the star tight end of the San Francisco 49ers. An I.P.O. for Mr. Davis would join Fantex’s first planned offering, a stock deal linked to Arian Foster, the Pro Bowl running back for the Houston Texans.

Fantex plans to buy 10 percent of Mr. Davis’s future earnings for $4 million. It hopes to pay for that by selling investors shares in a tracking stock that is linked to his economic performance, which includes the value of playing contracts, corporate endorsements and appearance fees.

Since it was announced two weeks ago, the start-up’s innovation has caused a stir on Wall Street and in the sports world. Market commentators have raised questions about the soundness of the deal for investors, citing its complex structure and many risks, including the chance that an injury could cut short a player’s career and earnings potential.

Fantex has a two-pronged business model. The company is primarily a sports marketing and management firm that signs professional athletes and takes a stake in their future earnings. It hopes to expand beyond football players and into other athletes and entertainers.

But Fantex also plans to start a trading market that allows small investors to buy and sell interests in the athletes. To finance its payments to the athletes for a stake in their brands, Fantex has created stock intended to track their economic performance.

The business proposition appears to be a good one for the athletes. A deal with Fantex allows them to receive a large payment upfront in exchange for a certain percentage of their future earnings, acting as a hedge against an injury or other hiccups in their careers.

Yet the proposed stock offerings have generated controversy. Investors will receive shares of securities called “Fantex Series Arian Foster Convertible Tracking Stock” and “Fantex Series Vernon Davis Convertible Tracking Stock.” These shares will be able to be traded only on the Fantex exchange, which it plans to set up in the coming weeks.

The tracking stocks will theoretically benefit from the athletes’ future earnings. If Mr. Davis’s future earnings potential soars, so will his shares, the thinking goes. But investors have no actual interest in the earnings stream, just a virtual one. There is also no guarantee of a dividend. Stocks tied to the players can be dissolved at any time and converted into shares of the Fantex management company.

“It’s a smart deal for the players but when you look at the fine print, there are a lot risks on the investment side,” said Ronald J. Heller, a former tight end for the 49ers in the 1980s who now runs Peritus Asset Management in California.

“That said, N.F.L. fans are a passionate bunch and there are probably a lot of 49ers and Houston fans that will want to play along,” Mr. Heller said.

Both the Davis and Foster deals are still in their nascent stages.

Investors can register with Fantex on its website, but the company is not yet accepting orders for the I.P.O.’s. Cornell French, the co-founder chief executive of Fantex, said the company hoped to begin to take reservations for the Foster deal next week.

The company intends to raise money in a Foster I.P.O. that would go toward paying Mr. Foster $10 million for a 20 percent interest in his future earnings. Fantex has not yet made a securities filing for the Davis deal, suggesting it is still several weeks away.

Mr. French, who is known as Buck, said the Fantex proposition had been well received since its debut two weeks ago. “We will continue to be out in the marketplace signing athletes’ brands and executing our business plan,” he said.

The company was formed by a collection of executives across Silicon Valley, Wall Street and the sports worlds. Mr. French is a longtime technology entrepreneur and another co-founder, David M. Beirne, was a partner at the venture firm Benchmark Capital.

Fantex has had a number of early setbacks. The company had intended to open for business at the beginning of the N.F.L. season, but Wall Street regulators held up the company’s debut. Then, three days after it announced the Foster I.P.O. the Texans running back had a dismal outing, carrying the ball just four times for 11 yards before leaving the game in the first half with a pulled hamstring.

Mr. French said he was not concerned about Mr. Foster’s injury or his spotty performance this season.

“Injuries are a risk for any of the players in the N.F.L.,” Mr. French said. “We’ll continue to develop his brand off the field, and the Texans can handle what he does on the field.”

In Mr. Davis, Fantex has signed an eight-year veteran from the University of Maryland who has played for the 49ers his entire career.

Before the 2010 season, he received a five-year contract extension for $37 million, with $23 million guaranteed. Last season, he helped the 49ers advance to the Super Bowl, where they lost to the Baltimore Ravens.

Mr. Davis’s brother, Vontae Davis, is a cornerback for the Indianapolis Colts. Does Fantex have plans to sign him, too?

A Fantex spokesman declined to comment.

http://dealbook.nytimes.com/2013/10/31/fantex-adds-another-athlete-to-its-i-p-o-roster/

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