If You Combine Wall Street With Fantasy Football, You Get...
It's an idea that's getting a lot of buzz. Football fans can now invest real money in their favorite players.
Claudia Cowan told Bill Hemmer this morning on America’s Newsroom that the brand builders at Fantex are offering a unique IPO – an opportunity for fans to buy stock for a starting price of $10 per share, per player.
“It is Wall Street combining with Fantasy Football,” said sports attorney Rich Brand. “People aren’t doing this to necessarily invest in a stock. It’s an investment in being a sports fan, and it’s very exciting but it’s not buying Google.”
Brand says that for some players, getting involved with Fantex could be a form of insurance against injury.
Just like any stock, it is risky and the player could get hurt. Cowan says the goal of the IPO is to grow the athlete’s brand both on and off the field.
As the player's earnings exceed expectations, the investor would start to see a profit. For example, Fantex CEO Buck French explained that 49ers star tight end Vernon Davis will be paid $4 million in exchange for a 10 percent interest in his future earnings. The money would be raised through selling a registered security to the public.
Buffalo Bills quarterback E.J. Manuel has set up a similar deal.
Would you invest in your favorite player? Watch the report above and tell us what you think!