Invest in Stock Linked to the Income of a Pro Athlete Brand *
It’s real stock, real money, and real
Ever wanted a way to invest in stock linked to the cash flows of a professional athlete?
Fantex is the only platform offering securities linked to the earnings generated by a pro athlete’s brand -- on and off the field, possibly forever. Learn More
Is this real money, real stock?
Fantex is a real-money marketplace, and the exclusive brokerage for all Fantex, Inc. securities. Each tracking stock is linked to the value and performance of a contract between the athlete and Fantex, Inc. This is the first time fans can invest in stock linked to a player’s brand income. The minimum investment to invest in an IPO is one share, or $10. There are no minimums to open an account with Fantex.
How does Fantex, Inc. value a brand?
Fantex, Inc. looks at many factors in valuing a brand initially, including the sport, the playing position of the athlete, and how the athlete compares to his peers, and then estimates the length of his playing career. Fantex, Inc. also looks at the earnings of an athlete’s brand, including current and future playing contracts, endorsements, appearance fees as well as post-career income from contractually-specified activities, which may include things like broadcasting.
What happens if an athlete is injured or retires?
An athlete’s brand income would be negatively impacted if he is injured or retires prematurely. But even if an athlete get injured or retires, they could continue to earn other brand income (such as endorsements, business ventures, or broadcasting), and the same portion of any of this brand income would still be payable to Fantex, Inc. based on the brand contract.
What is Fantex?
Fantex Holdings is the parent company of both Fantex, Inc. and Fantex Brokerage Services. Fantex, Inc. is a brand building company that purchases a minority interest in an athlete brand and works to increase the value of the brand. In order to fund the purchase, Fantex, Inc. develops a tracking stock that is linked to the economic performance of the brand.
Fantex Brokerage Services, LLC is the exclusive trading platform for tracking stocks that are issued by Fantex, Inc.
What are the risks?
All investments have risks, and securities listed on Fantex also have risks that should be considered before making any investment. Specific risks include things like risk of injury, the athlete’s inability to sign new playing contracts or the loss of endorsement deals. Fantex Tracking stocks are highly risky and speculative and should be considered only by persons who can afford the loss of their entire investment. The Fantex, Inc. risk factors can be viewed here.
Why would an athlete sign with Fantex, Inc.?
Athletes get cash upfront for selling a piece of their future brand income. Athletes also have the opportunity to work with the Fantex, Inc. team to grow their brand awareness, increase their brand’s longevity, and potentially generate more lifetime brand income.
Where can I trade these stocks?
All Fantex, Inc. securities will trade exclusively at Fantex.com. Fantex is a registered ATS (alternative trading system) with the SEC. There can be no assurance as to the development or liquidity of any trading market for these stocks.
What is a Fantex, Inc. tracking stock?
To finance the acquisition of the contracts, Fantex, Inc. will offer equity securities in Fantex, Inc. and establish a tracking stock linked to the separate economic performance and value of the brand associated with the tracking stock – which may include income earned from contracts, endorsements and appearance fees as determined by the brand contract.
Fantex, Inc. will typically attribute 95% of the acquired brand income under the brand contract to the tracking stock. In addition Fantex, Inc. will attribute to the brand certain expenses of Fantex, Inc. including in certain cases specified expenses related to other tracking stocks that may be issued in the future. Holders of shares of a tracking stock will have no direct investment in the business or assets attributed to the brand contract, associated brand or athlete. Rather an investment in a tracking stock will represent an ownership interest in Fantex, Inc. as a whole.