Arian Foster (Texans running back) sold a 20% stake in all future earnings (contracts, endorsements, other businesses) for $10,000,000 to a company called Fantex. They are selling the shares publicly and just filed the S-1 today. http://www.sec.gov/Archives/edgar/data/1573683/000104746913009713/a2216998zs-1.htm Would you invest in an athlete?
No, running backs don't have a huge shelf life and foster is already playing through injuries now. Buy shares in a qb? Hell yes
Good point on the RBs not having a long shelf life. They're also forgotten about quickly and therefore their longevity as earners is worse than, say, QBs who seem to continue to get endorsement deals well into their post-playing days. I think this is a good move by this company though. Foster is still in his prime and probably has a few years left. Hes also got endorsement deals right now. I think what may set Arian Foster apart as far as his long term earning potential is that hes very well spoken and very outspoken. Hes involved in a lot of different charity work and speaks out about political/social issues. Seems like hes on the fast track for a continued career in TV as an analyst if he wanted to, but he seems like the kind of guy who is going to do very well regardless of whether he wants to get into TV/football commentary, politics, business, or whatever. Hes been building his brand too and I'll bet he already operates like a corporation - including a plan for long term revenue streams. Just read his wiki. Apparently hes also getting into movies. Building that brand.
Arian Foster seems like a smart dude. I'd sell a part of me for $10,000,000. Like noted, RB is a difficult position to contain longevity at.
I would guess the company has a low chance of getting their money back but this is great exposure for them nonetheless
I wonder if it is 20% before or after taxes? His salary for 2014-2016 is around 17 million. Funny thing is he has made 24 million the last 2 years, not sure what he is thinking, but you ha e to assume he has zero plans of making more than 50 million from this point forward
Didn't he just sign a multi year contract? I wonder if you would get a portion of the unearned portion of his currect deal. Either way, I don't think there is any chance of him making another $50 mil. This is a cool idea though, and I would love to be able to buy into players as soon as they declare for the draft. They get upfront cash and we could actually make a profit.
With endorsements, movies, his NFL contract, his NFL annuity, etc....... I wouldn't be surprised if he gets another $50 million in his lifetime, or very close to it. He's a smart dude. I would sbe urprised if he hadn't invested his money well, which I assume any future earnings from this would be included. It's still risky, though, and when considering the time value of money....... Good deal for Foster. But if he uses the $10 million chunk he just made wisely, that could be money being used for another investment. So it could end up being good for investors too. It's hard to know without knowing Foster's intentions for the money (would that be insider trading?).
