Houston Texans Running Back Arian Foster Is IPOing Himself
A San Francisco-based company called Fantex said today it will offer shares that allow holders to invest in Foster's "brand" - i.e., his personal earnings potential.
ESPN's Darren Rovell has the details:
Fantex is paying Foster $10 million for a 20 percent stake in his future income, including contracts, endorsements and other related business revenue. The company will begin taking reservations in the next two weeks and could be selling shares of Foster in as soon as a month depending on demand and progress with the Securities and Exchange Commission.
It's much like fantasy sports, except fans will be trading on Foster's business value. If he does well on the field and companies become more interested in Foster as an endorser, his stock might go up. Fans can then buy and sell shares, with Fantex taking a commission. The company says it is hoping to acquire a future stake in athletes but does not have any other deals finalized at this time.
Former NFL Hall of Fame quarterback John Elway sits on the Fantex board of directors.
"Fantex represents a powerful new opportunity for professional athletes, and I wish it were available during my playing days," said Elway in the company's press release announcing the Arian Foster IPO.
Below is the full text of the Fantex release.
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Fantex Brokerage Services Launches First Trading Platform for Stock Linked to the Value and Performance of an Athlete BrandFantex, Inc. to acquire a 20% minority interest in the brand income of Houston Texans Pro Bowl running back Arian Foster for $10 million October 17, 2013 09:03 AM Eastern Daylight Time
SAN FRANCISCO--(BUSINESS WIRE)--Fantex Holdings, based in San Francisco, announced today that it is launching two subsidiary companies, Fantex Brokerage Services (FBS) and Fantex, Inc. FBS is an all-new marketplace that allows investors to buy and sell Fantex, Inc. stock linked to the value and performance of the brand* of a professional athlete. Fantex, Inc. is a brand building company, which purchases a minority interest in an athlete brand and works to increase the value of the brand. Holders of shares of a Fantex, Inc. tracking stock will have no direct investment in that brand contract, associated brand or athlete. Rather, an investment in a tracking stock will represent an ownership interest in Fantex, Inc. as a whole.
Fantex, Inc. has filed a registration statement for its first tracking stock, which will be linked to the value and performance of the brand of Houston Texans Pro Bowl running back Arian Foster. This will mark the company's first Initial Public Offering (IPO).
"Fantex is bringing sports and business together in a way never previously thought possible," said Buck French, co-founder and CEO of Fantex Holdings. "By building a marketplace that allows customers to buy shares in a tracking stock linked to the value and performance of an athlete brand, Fantex is enabling a new level of brand advocacy through ownership. For the first time, people can now invest real money in a stock linked to the brand of a professional athlete."
The tracking stock will be offered pursuant to a registration statement that has been filed with the Securities and Exchange Commission (SEC), and the stock is linked to the economic performance and value of the professional athlete's brand, such as playing contracts, endorsements, and appearance fees. All investor transactions take place on Fantex Brokerage Services.
Beginning today, investors can register at www.Fantex.com and fund their accounts. Starting in approximately two weeks, they can place reservations for shares in the IPO of Fantex Arian Foster. The offering is highly speculative and the securities involve a high degree of risk. Investing in a Fantex, Inc. tracking stock should only be considered by persons who can afford the loss of their entire investment.
Fantex, Inc.'s goal is to announce additional brand acquisitions in the months ahead, and over time across the world of sports. There is no assurance that Fantex, Inc. will acquire additional brands. If Fantex, Inc. acquires new brands, it may issue additional tracking stocks which involve additional risks.
"Fantex represents a powerful new opportunity for professional athletes, and I wish it were available during my playing days," said John Elway, Fantex Holdings Board Member, Hall of Fame quarterback and current executive vice president of football operations for the Denver Broncos.
While Fantex serves as a new proposition for investors to consider, it also offers a compelling proposition for athletes. 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 its marketing expertise. In order to fund the purchase, Fantex, Inc. develops a tracking stock linked to the economic performance of the brand contract and sells shares in the tracking stock to the general public through a registered initial public offering on Fantex Brokerage Services.
For information on trading fees and other details, please visit www.Fantex.com.
About Fantex
Based in San Francisco, Fantex Holdings serves as the parent company to both Fantex, Inc. and Fantex Brokerage Services. Fantex, Inc. is a brand building company, which purchases a minority interest in an athlete brand and works to increase the value of this brand. In order to fund the purchase, Fantex, Inc. develops a tracking stock that is linked to the economic performance of the brand. The tracking stock is to be offered pursuant to a registration statement filed with the Securities and Exchange Commission. The offering takes place on Fantex Brokerage Services, the world's first trading platform that lets consumers invest real money in stock linked to the value and performance of the brand of a professional athlete.* Each Fantex, Inc. tracking stock is intended to track and reflect the separate economic performance of a specific brand contract that Fantex, Inc. has signed with an athlete. However, holders of shares of a Fantex, Inc. tracking stock will have no direct investment in that brand contract, associated brand or athlete. Rather, an investment in a tracking stock will represent an ownership interest in Fantex, Inc. as a whole, which will expose holders to additional risks associated with any individual tracking series that Fantex, Inc. establishes and issues in the future. Each Fantex, Inc. tracking stock is only offered through Fantex Brokerage Services. Fantex Brokerage Services cannot assure you as to the development or liquidity of any trading market for these stocks.
Fantex, Inc. has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. This investment is complex, risky and speculative. Before you invest, you should read the prospectus in that registration statement and other documents Fantex, Inc. has filed with the SEC for more complete information about Fantex, Inc. and this offering. You may get these documents for free by visiting EDGAR on the SEC Website at www.sec.gov. Alternatively, Fantex, Inc., any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 866-315-3482. View the prospectus.
Contacts
Finn Partners
Howard Solomon, 415-348-2733
Howard.solomon@finnpartners.com
or
Gabriella Asmus, 415-348-2721
Gabriella.asmus@finnpartners.com