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Interesting concept: Company plans to sell stock in players...

Discussion in 'Off-topic Zone' started by Section444, Oct 17, 2013.

  1. Section444

    Section444 Well-Known Member

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  2. Bungarian

    Bungarian Butt Monkey

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    Sounds like a scam
  3. kilz

    kilz Member

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    A combination of sports betting and stock investing... i'm in. Obviously, regulation is required to make it viable, but if so... is a monetary escalation of our current fantasy football infatuation.
  4. Kristen82

    Kristen82 Benched

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    Does this mean if we buy enough that we become majority shareholders we get to make the player do whatever we want (checks piggy bank)? Kristie and I gots dibs on Hunkycheeks...I mean Romo....
  5. rags747

    rags747 Well-Known Member

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    Interesting concept, done in the music business for various artists.
  6. hipfake08

    hipfake08 Well-Known Member

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    This will have to be regulated....
  7. dargonking999

    dargonking999 DKRandom

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    Ironically, when this news broke last week, Foster was one of the first ones being touted as an athlete you can buy stock in. The very next game against the chiefs, he "re aggravates" his hamstring after four carries, and is in street clothes before the first quarter is over. regulated or not, doing this will just create so much tension between teams and players when it comes to injuries, playing time, scheme, etc.. that I just don't think its a maintainable idea. Players will be more increasingly worried about the money they make then they are now.
  8. REDVOLUTION

    REDVOLUTION Return to Dominance

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    The guy flat out said it, "it's a gamble" .... Like the pyramid/ponzu-type setup was already in place
  9. Crown Royal

    Crown Royal Insulin Beware

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    So shareholders will get dividends on future earnings?

    Also, would be difficult to buy any of this, as the time value of the stock is horrible. Even with broadcast deals, eventually it dies down.
  10. Rogah

    Rogah Well-Known Member

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    Well, it's not a scam - at least not in the sense that some huckster is going to take your money and disappear. It's actually an interesting concept which doesn't cross the line into illegal gambling because it isn't gambling any more than an insurance policy or playing the stock market is. You're not betting on the outcome of a sporting event, though certainly the better Foster performs, the more money you'd likely make.

    The only thing I don't like about it is the conflict of interest with having someone in an NFL team's front office (i.e. John Elway) involved. I wouldn't be surprised if the league puts the kibosh on his involvement.
  11. Rogah

    Rogah Well-Known Member

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    I agree. I don't anticipate people will be trading stock all that much. It seems to me the smart thing to do is simply buy a player you believe in, then collect dividends all the way through.
  12. Rogah

    Rogah Well-Known Member

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    Actually, my concern is that they'd be less worried about their income since, no matter how much they make, they only keep 90% of it. Arian Foster might be thinking to himself "hey I got my $10 million, so if I retire tomorrow due to "injury" that money is still mine."
  13. Rogah

    Rogah Well-Known Member

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    I actually looked into this, did some research and ran the numbers and I think it is a horrible investment. First of all, Fantex literally had to create a full out, professional Prospectus for Foster like any other company going public and file it with the SEC (you can see it at http://www.sec.gov/Archives/edgar/data/1573683/000104746913009713/a2216998zs-1.htm).

    Fantex paid $10,000,000 for 10% of all of Foster's future earnings and they are selling 1,055,000 shares at $10 each. So if they sell out, they walk away with a cool $550,000. Meanwhile, for the shareholders to break even, Foster has to earn $105.5 million dollars from this point forward. He has about $25 million left on his current deal, plus he gets a couple million in endorsements, but I was actually surprised at how low his endorsement income is.

    Essentially what you need is for a 30 year old Arian Foster to go out and get an $75 million contract somewhere (and when I say a $75 million contract, I mean a contract of that size where he actually earns that much and not, like, a Donovan McNabb $78 million contract where he never sees anything near that amount). I'm not saying it's impossible, but I just don't see that as being likely at all. I know I certainly am not willing to risk any money on that chance.
    REDVOLUTION likes this.
  14. REDVOLUTION

    REDVOLUTION Return to Dominance

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    Thank you for researching and explaining! :)

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