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View Full Version : Fantex- buying and selling players futures



red
10-17-2013, 07:39 PM
i was just reading about this on PFT, it just seems so wrong on so many different levels



[url]http://www.usatoday.com/story/money/business/2013/10/17/arian-foster-startup-nfl-football-player/3004681/?utm_source=dlvr.it&utm_medium=twitter (http://profootballtalk.nbcsports.com/2013/10/17/company-plans-to-sell-stock-in-players-starting-with-arian-foster/#comments)


the setup is. the company gives a player a large chunk of money, like a loan, in return from a percentage of all their future football earnings (playing, coaching, owning, broadcasting, commercials, etc)

the company will pay for these "loans" buy selling stock on those players and running a stock exchange. player plays good, stock goes up, player plays bad, stock goes down

their first client is arian foster. fantex gives him $10 million dollars now, and gets %20 percent of all his future football earnings. the company then plans to sell 1 million shares of foster stock at $10 a pop

1. what stops foster from getting the money and calling it a career after this year?

B. there seems to be no way for fantex to lose on this one. they give away someone elses money and get all the returns

* is this even legal?

- is this even allowed by the CBA. as some people replied on PFT, this is basically players betting on themselves and each other

red
10-19-2013, 11:30 AM
another article thinking its a dumb idea

http://finance.yahoo.com/blogs/the-exchange/why-investing-pro-athletes-suckers-192258434.html

MadScientist
10-19-2013, 12:21 PM
Any player who does this is likely bad with money or doesn't believe in his abilities. Either way a very high risk.

KYPack
10-19-2013, 12:46 PM
It's another sign of the coming apocalypse.

MJZiggy
10-19-2013, 05:19 PM
another article thinking its a dumb idea

http://finance.yahoo.com/blogs/the-exchange/why-investing-pro-athletes-suckers-192258434.html

That's only because it's a dumb idea.