Opportunity for Dividends
Fantex, Inc. securities are designed to pay dividends. The company intends to make these payments based on the available cash generated from the company’s contracts with professional athletes.
Unique Asset for Diversification
The underlying cash flows of Fantex, Inc. securities (i.e., athlete salaries) are tied to return drivers unrelated to those driving a traditional investment portfolio. In this way, Fantex, Inc. stocks are a unique alternative asset category that can be part of an overall diversification strategy.
Prior to the offering of each stock, Fantex, Inc. engages in a detailed statistical process to estimate the fair value of each contract it signs with an athlete. Fantex, Inc. also researches the background and character of each player prior to entering into a contract.