Fantex is an all-new marketplace where you can buy and sell shares linked to the value and performance of the brand of an athlete — It's real money, real investments, and a real athlete’s brand. However, because you can only trade Fantex, Inc. tracking stocks on this platform, there is no assurance as to the development or liquidity of any trading market.
The stock available is common stock issued by Fantex, Inc. This tracking stock is linked to the economic performance and value of a brand of a professional athlete – such as income earned from contracts, endorsements and appearance fees.
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.
The tracking stock offered is pursuant to a registration statement that has been filed with the Securities and Exchange Commission (SEC).
To finance the acquisition of the contracts, Fantex, Inc. intends to 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 – such as income earned from contracts, endorsements and appearance fees. 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.
The only tracking stock available on Fantex is one that has gone through the SEC registration process. The goal is to sign additional athlete brand contracts and offer tracking stocks linked to those brands. If this happens, we’ll notify you both on the website and via email for those who have signed up.
An athlete’s brand value is made up of certain income generated throughout both their playing and post-career. This includes income from items such as playing contracts, endorsements, and appearance fees, a percentage of which Fantex, Inc. is entitled to receive under the brand agreement. For more specifics, please review the prospectus for the tracking stock.
This is a stock linked to the value and performance of an athlete’s brand, not the person. When the athlete retires, their brand may or may not continue to generate income into the future (e.g. endorsements, appearances, broadcasting, etc.). As long as the brand continues to generate income as defined in the brand contract, Fantex, Inc. is entitled to continue to receive payments pursuant to its brand agreement.
The tracking stock may be converted into Fantex, Inc. Platform common stock. If the tracking stock is converted, then you should not expect many shares of Platform common stock upon conversion.
If and when additional brands are added to our platform, Fantex, Inc. Platform common stock is intended to track and reflect the economic performance of all of our tracking brands, by having a small percentage (5%) of acquired brand income from each brand.
We'll need the usual things like personal and contact info, including your social security number (for IRS tax reporting purposes) and answers to a few questions to determine your investment profile.
Current eligibility is limited to U.S Residents ages 18 years or older with a physical address in the United States, or its territories. Sorry, no P.O. Boxes. Institutions interested in learning more about opening an account at Fantex Brokerage Services should send their inquiries to: email@example.com
You have the option to fund your account after registering, but it's not required right away. You'll still have full access to Fantex features – but you can't start trading until there's money in your account.
The security and privacy of your personal information are a big deal to us. Fantex uses a variety of measures to protect your personal information. All customer information is kept confidential with strict physical, electronic and procedural safeguards in place to protect against unauthorized access to your information.
Funding your Fantex account can be done in one of three ways – electronic transfer (most common), wire transfer (quickest) or sending in a check by "snail mail". All you have to do is choose the one that works best for you.
There's no minimum requirement to fund your account. Just make sure you've got enough money in there to cover your order (including fees) before hitting that "buy" or "reserve" button.
The time it takes for funds to hit your account depends on the funding method. For electronic transfers, money should show up in 4-5 business days. Wire transfers will usually show up within 1 business day.
We don't charge any fees to fund your Fantex account. However, depending on what method you select, your bank might. Check with them to make sure.
The key differences between the two are speed and cost. Electronic transfers may take a few days but are cheaper (in most cases free). Wire transfers are fast, often within the same day but typically have a fee charged by your bank.
An "Initial Public Offering" (IPO) is when the Fantex, Inc. tracking stock linked to the value and performance of the athlete brand is made available for sale to the public.
First, Fantex, Inc. files the registration statement with the SEC with info on the tracking stock being publicly offered. The registration statement contains the prospectus, which has important information about Fantex, Inc., the associated brand contract and brand, including information about the associated athlete and his playing contract and endorsements, the offering size and risks you should know about before making any decision to invest. It also includes the methodology and assumptions used by Fantex, Inc. to determine the initial value of the brand and how Fantex, Inc. intends to help increase the potential brand value through its marketing activities. Soon after the registration statement is posted, we start taking reservations for the shares. Remember, if demand for the offering is higher than the number of shares being offered, you might not be allocated all, or any, of the shares you reserved. If demand for the offering is less than the number of shares being offered, Fantex, Inc. may cancel the offering, in which case you would not be allocated any of the shares you reserved.
Check out the prospectus to see the total number of shares issued.
We’ll send you an email – as a heads up – if a new Fantex, Inc. tracking stock is being offered, with a link to the prospectus describing the athlete brand linked to that tracking stock.
If you want to participate in the upcoming IPO, you’ll need to place a reservation through the Fantex site. A reservation does not guarantee that you will be allocated shares.
If you want to participate in the IPO, you need to have a funded Fantex account and enough funds available to cover the cost of your order. Otherwise, the reservation won’t go through. And, depending on what state you live in or based on answers you gave to create your investment profile during registration, some IPO reservation restrictions may apply.
Fantex works on a "bid" (buy) and "ask" (sell) system. Before you buy, we encourage you to read the prospectus and understand the risks. Hit the "Buy/Sell" link then check out the Buyer/Seller list. If you see something you like, enter your bid price and see if a seller accepts it.
Selling works the same as buying, but in reverse. Instead of a bid, you'll enter an "ask" price (together with a share amount) – if a buyer accepts, your shares are sold.
However, because you can only trade Fantex, Inc. tracking stocks on this platform, there is no assurance as to the development or liquidity of any trading market.
The standard transaction fee is 1% on the total amount of your trade.
A Limit Order is a buy/sell order for stock at a specific price. If you put out a "Buy Limit Order" for a stock at, say $10, you won't pay anything above $10, excluding fees.
A "Sell Limit Order" works the same way but sets your asking price so that it won't sell for anything under your minimum – sorry, no shorting or market orders allowed.
Regular trading hours are Monday-Friday, 12 p.m. to 8 p.m. ET.
The buyer/seller list shows you what prices other investors are asking or bidding for different shares of the tracking stock. It simply tells you what's on the market and for what price. It's also a handy tool to gauge price range and market interest before putting in a bid of your own or deciding to sell shares you hold.
We don't have a minimum share requirement on either buying or selling shares.
The Fantex, Inc. board of directors is permitted, but not required, to declare and pay dividends on a Fantex tracking stock in accordance with Delaware General Corporation Law.
It's called the Fantex app and will work on iPhone® and Android™ devices. That means tablets too. We'll notify you when the app is available!
Just fill out a form and tell us where to send it. Electronic transfer or check, it's up to you.
Electronic Transfers are free, and there is a fee on check requests.
Like depositing funds, getting them back depends on the method. The most common method of electronic transfer usually takes 4-5 business days.
An investor should carefully consider all of the information set forth in the prospectus and, in particular, the information under the heading "Risk Factors" prior to making an investment in Fantex, Inc. tracking stocks. These risks include, among others, the following:
Risks Associated with Fantex Inc.'s Business
Fantex, Inc.'s ability to implement its business strategy is subject to numerous risks and uncertainties. Fantex, Inc. faces many risks inherent in its business generally. An investor should carefully consider all of the information set forth in each prospectus and, in particular, the information under the headings of "Risk Factors" prior to making an investment in a Fantex, Inc. tracking Series. These risks include, among others, the following:
Summary of Risks
Risks Relating to Fantex, Inc.'s Limited Operating History, Financial Position and Capital Needs
Risks Relating to Fantex, Inc.'s Brand Contracts and its Business
Risks Relating specifically to Fantex Series Vernon Davis
Risks Relating to the Issuance of Additional Tracking Series, Including the Issuance of Fantex Series Arian Foster
Risks Relating specifically to Fantex Series Arian Foster
Risks Relating to Fantex, Inc.'s Tracking Stock Structure
Risks Relating to these Offerings and the Offering Process
Risks Relating to Fantex, Inc.'s Affiliate, Fantex Brokerage Services ("FBS"), and the FBS ATS
Risks Relating to the Latitude Given to Fantex, Inc.'s Board and Fantex Holdings
Fantex, Inc.'s board of directors and Fantex Holdings will have extraordinary latitude to make decisions without an investor's consent, and any of these decisions may have a material and adverse effect on an investor's investment. Fantex, Inc.'s board of directors will make any such decision in accordance with its good faith business judgment that such decision is in the best interests of Fantex, Inc.'s and the best interests of all of Fantex, Inc.'s stockholders as a whole. In certain circumstances, decisions of the board of directors may also be subject to the approval of the conflicts committee. This may mean that Fantex, Inc.'s board of directors may make a decision that is not necessarily in an individual investor's best interest but that may be in the best interests of all of its stockholders as a whole. Significant decisions that may be made by Fantex Holdings or Fantex, Inc.'s board of directors without an investor's consent include the following: