Fantex: How it Works

Meet Fantex

The exclusive brokerage for stock linked to a pro athlete brand*

Fantex is the only real-money trading platform and brokerage where you can trade shares linked to the value and performance of an athlete brand.

Get Started

Getting started is easy and only
takes about 5-8 minutes.

Live chat with customer service

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Is this real money, real stock?

Fantex is a real-money marketplace, and the exclusive brokerage for a Fantex, Inc. security.

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What's in it for me?

Potential investors can invest in a stock linked to earnings of a professional athlete brand who they know and follow already.

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What's in it for the athlete?

The athlete gets cash upfront for selling a piece of their future brand income. The athlete also has the opportunity to work with the Fantex, Inc. team to grow his brand awareness, increase his brand’s longevity, and potentially generate more lifetime brand income.

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Do I have to buy shares if I open an account?

No. Currently, there are no minimum deposits required to open an account or reserve shares in an IPO, and you can choose whether or not to reserve shares even if you open an account.

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Are there dividends?

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 Coporation Law.

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What are the risks?

As with most investments, there are certain risks associated with investing in tracking stock linked to an athlete’s brand. An investment in Fantex, Inc. is highly speculative and should only be considered by persons who can afford the loss of their entire investment. Please review the prospectus for a detailed description of the risks involved with investing in a Fantex, Inc. tracking stock. The Fantex, Inc. risk factors can be viewed here.

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What happens if an athlete is injured or retires?

An athlete’s brand income would be negatively impacted if they are injured or retire prematurely. But even if an athlete gets 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.

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How is an athlete's brand valued?

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 potential from contractually-specified activities, which may include things like broadcasting. For a detailed description of how a brand is valued see the prospectus.

Questions? Call us at (855) 905-5050

You can also chat with support, view the knowledge base or email us with any questions

Investing in an IPO on Fantex

An "Initial Public Offering" (IPO) is the first opportunity to invest in a Fantex, Inc. tracking stock. After the IPO, the tracking stock is intended to trade on the Fantex platform.

After Fantex, Inc. and the athlete agree on terms (a percentage of that athlete’s future brand income in return for a one-time payment to the athlete), a tracking stock is created that is linked to the athlete’s brand income.

When Fantex, Inc. signs a new brand contract, the IPO goes like this:

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1

Announcement

Fantex, Inc. announces a new brand contract with an athlete.

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2

SEC Filing

Fantex, Inc. files a registration statement with the SEC.

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3

Open
Reservations

Interested investors can reserve their shares in the IPO.

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4

Close Reservations

Fantex will provide a final notice before closing the IPO and let investors know they need to fund their accounts to receive shares.

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5

Allocate IPO Shares

IPO shares are allocated to investors and trading begins.

**Timeline footnote: This image is not complete and does not detail every step along the way. The steps illustrated are also forward-looking and are subject to a number of risks, uncertainties and assumptions that may cause actual events to differ materially. Before you invest, you should read the prospectus for any IPO for complete information about Fantex and the offering, and for a description of such risks, uncertainties and assumptions. No shares may be sold prior to the time the registration statement for an IPO becomes effective.

How much does it cost to invest in an IPO?

The minimum investment in an IPO is the cost of one share. Investors pay no other fees and there are no minimums to open an account with Fantex.

When are IPOs available?

Fantex will announce when a new tracking stock is being offered. Investors interested in an IPO on Fantex can then reserve shares. You don’t have to fund your account at this time.

Who can invest?

Current eligibility is limited to U.S. residents ages 18 years or older with a physical address in the United States, or its territories, and additional restrictions apply. Institutions interested in learning more about opening an account at Fantex Brokerage Services should send their inquiries to: institutions@fantex.com

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What happens after the IPO?

If your reservation is accepted, Fantex, Inc. will deliver shares to your accounts and you can place buy and sell orders. 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.

Where can I learn more about an investment?

A prospectus will be filed with the SEC and will be publicly available for each Fantex, Inc. tracking stock. A prospectus gives potential investors detailed information about the company, the brand, and risks involved. Visit the explore page to view available investments.

What about people affiliated with a broker-dealer?

If you work for a broker-dealer (or are supported by someone who does), then by law you restricted from participating in IPOs. However, you can still open an account and trade stocks on Fantex. Give us a call if you have more questions about this (855) 905-5050.

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Trading on Fantex

When a stock opens on the Fantex platform, it is now available to trade by all eligible accounts.

If you didn’t invest in the IPO, you have the opportunity to trade in a Fantex, Inc. tracking stock linked to the earnings of specific athlete brands.

Here’s what happens after the IPO:

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1

Trading Begins

Once the IPO closes and shares are allocated, open market trading begins on the Fantex platform.

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2

Regular Reporting

Fantex, Inc. files quarterly, annual, and other periodic updates with the SEC.

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3

Brand Income

When the athlete gets paid, a portion of the brand income is paid to Fantex, Inc.

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4

Potential Dividends

Fantex, Inc. intends, but is not required, to declare and pay out cash dividends to stockholders.

**Timeline footnote: This timeline is also forward-looking and is subject to a number of risks, uncertainties and assumptions that may cause actual events to differ materially. Before you invest, you should read the prospectus for any IPO for complete information about Fantex and the offering, and for a description of such risks, uncertainties and assumptions. No shares may be sold prior to the time the registration statement for an IPO becomes effective.

What determines share price?

A stock’s price will be determined by supply and demand in the market. We work on a bid and ask system, and there is no assurance as to the development or liquidity of any trading market. News about Fantex, Inc., the athlete, as well as any number of external factors may have an effect on stock price. Ultimately it’s up to the market to decide what’s meaningful.

What is Fantex, Inc. platform common stock?

Platform common stock is intended to track and reflect the economic performance of all of our tracking series brands. 5% of acquired brand income received by Fantex, Inc. from each brand on the platform will be attributed to the platform common stock.

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What if the brand stops generating income?

The tracking stock may be converted into Fantex, Inc. Platform common stock based on relative fair market value of the stock. If the tracking stock is converted, then you should not expect many shares of Platform common stock upon conversion. For a detailed description of how a brand is valued, see the prospectus.

How often would I get updates?

Fantex, Inc. will file annual, quarterly and periodic reports with the SEC, detailing financial results and providing other pertinent information about the company and its tracking stock.

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What is the transaction fee to buy or sell?

Excluding IPO purchases, the standard transaction fee is 1% of the total amount of your trade. So, for example, if you invest $100 in a stock, you would pay a $1 transaction fee.

What about dividends?

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 Corporate Law.

What is 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.

Getting Started

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Enroll

It’s easy to get started and only takes about 5-8 minutes to open an account.

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Fund

We offer 3 options to fund your account: through a bank transfer (the most common), a wire (the fastest) or mailing a check (if you like stamps).

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Invest

You can visit our explore page to check out upcoming IPOs and any stock currently trading on Fantex.

Questions? Call us at (855) 905-5050

You can also chat with support, view the knowledge base or email us with any questions