Fantex Brokerage Services (FBS) is a FINRA-member broker/dealer offering investors a platform to buy and sell unique investments tied to athlete income - playing contracts, endorsements, speaking fees, etc. The platform offers investors the opportunity to invest in stocks linked to the cash flows generated by contracts with professional athletes.
FBS is similar to other firms providing access to non-traditional investments in areas such as consumer debt or real estate. However, FBS offers investors access to the unique asset category of stocks tied to the earnings potential of individuals - starting with sports.
Designed for Dividends
Fantex, Inc. securities are designed to pay dividends, subject to the availability of funds. These payments are expected to be made as the contracts Fantex, Inc. has with professional athletes generate cash.
This is an example of historical dividends paid to stockholders of Fantex Vernon Davis. This is not indicative of any past or future dividends for any other Fantex, Inc. stock.
Fantex, Inc. engages in a detailed statistical process to estimate the fair value of each contract it signs by creating a model to estimate an athlete's future income. Fantex, Inc. then discounts this estimated future cash flow to adjust for risk.
There are two fundamental drivers used to estimate the fair value of contracts signed with athletes:
Comparable Players: Fantex, Inc. builds a statistical model to determine the closest set of comparable players based on factors such as draft position, production, durability and injury history. This is done to estimate the athlete's future playing contracts.
Salary Cap Growth: Once the athlete's comp set is derived, future playing contracts are estimated based on historical and estimated future growth of salaries in that sport.
Fantex, Inc. gives an athlete an up-front lump sum payment to acquire a percentage of the athlete's future cash flows. As the athlete earns money from his playing contract and certain off-the-field activities such as endorsements, the athlete pays the contracted percentage of these earnings to Fantex, Inc. Whenever an athlete earns brand income as defined in the contract with Fantex, Inc., 95% of that income will be attributed to the respective tracking stock.
Based on the available cash for each tracking stock, Fantex, Inc. intends to return a percentage of this cash to the stockholders of the applicable tracking stock via periodic dividend distributions.†
Factors Impacting Stock Performance
There are a number of factors that can impact the value of an investment in a Fantex, Inc. stock.
An athlete's performance on the field - both positive and negative - has the potential to impact the value of his future playing contracts.
The ability or inability of the athlete to secure revenue generating opportunities away from the playing field will impact the total income paid by the athlete to Fantex, Inc.
Fantex, Inc. is actively engaged in audience development with all the athletes it has under contract. If successful, these activities may help an athlete increase his income. These programs, if unsuccessful, will not provide any benefit to the athlete and his ability to generate additional income.
It's easy to get started and only takes about 5-8 minutes to open an account.
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).
You can visit our explore page to check out upcoming IPOs and any stock currently trading on Fantex.