Home Mail MemberMap Chat (0) Wallpapers
Go Back   ChiefsPlanet > The Lounge

View Poll Results: Would you buy stock in a pro football player?
Yes. Buy American. Or maybe Liberian in the case of Tamba. 4 40.00%
No. Football players are under revenue pressure from cheap Chinese imports. 2 20.00%
I'm more interested in short-term bonds with supermodels. 4 40.00%
Voters: 10. You may not vote on this poll

Reply
 
Thread Tools Display Modes
Old 10-17-2013, 03:43 PM  
Rain Man Rain Man is offline
Has never visited Finland.
 
Rain Man's Avatar
 
Join Date: Jul 2001
Location: 1.61 KM high city
Casino cash: $62699407
Interested in buying stock in an NFL player?

I find this intriguing, but I'm not buying Arian Foster stock high.

Also, it seems like a player wouldn't participate unless he thought he was getting a good deal. So if Arian Foster is taking $10 million for 20% of his future income, it indicates that he doesn't think he'll earn $50 million, right? I guess maybe there's an insurance element to it, though, so I guess that's another motivation.

Can you imagine the win if you had bought Marcus Cooper stock a month ago?

http://espn.go.com/nfl/story/_/id/98...houston-texans

For years, private investors have quietly backed up-and-coming boxers, tennis players, horses and golfers, but now the public is getting a chance to really own a piece of an athlete.

On Thursday, Fantex Brokerage Services announced its intention to allow fans to invest in stock related to the performance of an athlete's brand.

The company said its initial public offering will be for Houston Texans running back Arian Foster. Fantex is paying Foster $10 million for a 20 percent stake in his future income, including contracts, endorsements and other related business revenue. The company will begin taking reservations in the next two weeks and could be selling shares of Foster in as soon as a month depending on demand and progress with the Securities and Exchange Commission.

It's much like fantasy sports, except fans will be trading on Foster's business value. If he does well on the field and companies become more interested in Foster as an endorser, his stock might go up. Fans can then buy and sell shares, with Fantex taking a commission. The company says it is hoping to acquire a future stake in athletes but does not have any other deals finalized at this time.

"Fantex is bringing sports and business together in a way never previously thought possible," CEO Buck French said in a statement. "By building a marketplace that allows customers to buy shares in a tracking stock linked to the value and performance of an athlete's brand, Fantex is enabling a new level of brand advocacy through ownership."

French told ESPN.com that the company would collect 20 percent of what Foster makes going forward, including money made from the five-year contract with the Texans he signed last season that guaranteed him $20.7 million. Foster also will make money on his endorsement deals with Under Armour and Fuse Science, and he recently acquired a stake in chia bar company Health Warrior.

Fantex's success could depend on how many athletes are willing to give up a piece of their future income and how early in a career Fantex can secure a deal. French, though, disagrees with the latter point, saying there are some athletes who would be good to invest in for their post-career businesses.

Athletes who have had investors buy a stake in their future income include boxer Sugar Ray Leonard and golfer Rich Beem. The most famous investors in horse racing are likely the group of everyday people who owned Funny Cide, who won the 2003 Kentucky Derby and Preakness Stakes.

In Allen Park, Mich., Detroit Lions players Reggie Bush and Nate Burleson had conflicting views of the idea of buying and selling stock in an athlete.

Bush said he needed more information before he could say whether he'd agree to a deal similar to the one Foster has with Fantex, although he called the situation "intriguing."

"It's like buying stock in anything. It's kind of like you're gambling a little bit. I have bonds, municipal bonds and stuff like that, but that's a little different than buying stock in a person. It sounds very weird," he said.

Burleson credited Foster for a smart business decision.

"Yeah, I think so," he said when asked if he would agree to a similar deal. "But there's only so many athletes that, one, are going to have the money-making ability as a megastar as the Calvins [teammate Calvin Johnson] and Fosters, players like that. Then there's other athletes that might achieve success financially through business and different ventures they have going.

"It's appropriate for those two type of athletes, the megastars and those who are really business-minded. Using the NFL to further themselves as a platform for something much bigger for the rest of their lives. So yeah, I think it's good."
Posts: 73,987
Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.
  Reply With Quote
Old 10-17-2013, 03:47 PM   #2
theelusiveeightrop theelusiveeightrop is offline
Spiraling down the Drain
 
theelusiveeightrop's Avatar
 

Join Date: Oct 2012
Location: Dante's Ninth Circle
Casino cash: $92729
Them Tenn boys are smart.
__________________
"We're both part of the same hypocrisy, senator, but never think it applies to my family."
Posts: 16,996
theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.
  Reply With Quote
Old 10-17-2013, 03:53 PM   #3
Nightfyre Nightfyre is offline
MVP
 
Nightfyre's Avatar
 

Join Date: Mar 2004
Location: Helena, MT
Casino cash: $85657
This begs the question: will there be a derivatives market for said stocks?
Posts: 15,695
Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.
  Reply With Quote
Old 10-17-2013, 03:56 PM   #4
Rain Man Rain Man is offline
Has never visited Finland.
 
Rain Man's Avatar
 
JezzBall Champion Mahjongg 2 Champion
Join Date: Jul 2001
Location: 1.61 KM high city
Casino cash: $62699407
If it includes all income, including playing income, endorsements, and business income, the latter could be really important. A lot of these players invest in harebrained schemes that lose tons of money. You'd have to be sure that you don't invest in a superstar who starts a rap label for his buddies and invests in some terrible clothing line that bleeds money.
__________________
In the final seven games of the 2013 season, the Chiefs averaged 34.6 points per game, scored 38 points or more 4 times, and went 2-5. The NFL has ruined the sport.
Posts: 73,987
Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.
  Reply With Quote
Old 10-17-2013, 03:58 PM   #5
Nightfyre Nightfyre is offline
MVP
 
Nightfyre's Avatar
 

Join Date: Mar 2004
Location: Helena, MT
Casino cash: $85657
Quote:
Originally Posted by Rain Man View Post
You'd have to be sure that you don't invest in a superstar who starts a rap label for his buddies and invests in some terrible clothing line that bleeds money.
Yea, or in chia bar company Health Warrior. Whatever the **** that is.
Posts: 15,695
Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.
  Reply With Quote
Old 10-17-2013, 04:09 PM   #6
CrazyPhuD CrazyPhuD is offline
Meow
 
CrazyPhuD's Avatar
 
Pandemic Version 2 Champion Simon Champion
Join Date: Jun 2005
Casino cash: $1615695
Do not want....

__________________
"Political correctness is a doctrine, fostered by a delusional, illogical minority, and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a t*rd by the clean end"
Posts: 8,013
CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.
  Reply With Quote
Old 10-17-2013, 04:10 PM   #7
CrazyPhuD CrazyPhuD is offline
Meow
 
CrazyPhuD's Avatar
 
Pandemic Version 2 Champion Simon Champion
Join Date: Jun 2005
Casino cash: $1615695
Frankly all this will do is make athletes go bankrupt sooner. Maybe even while still playing.
__________________
"Political correctness is a doctrine, fostered by a delusional, illogical minority, and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a t*rd by the clean end"
Posts: 8,013
CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.CrazyPhuD threw an interception on a screen pass.
  Reply With Quote
Old 10-17-2013, 04:25 PM   #8
theelusiveeightrop theelusiveeightrop is offline
Spiraling down the Drain
 
theelusiveeightrop's Avatar
 

Join Date: Oct 2012
Location: Dante's Ninth Circle
Casino cash: $92729
Quote:
Originally Posted by CrazyPhuD View Post
Frankly all this will do is make athletes go bankrupt sooner. Maybe even while still playing.
__________________
"We're both part of the same hypocrisy, senator, but never think it applies to my family."
Posts: 16,996
theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.
  Reply With Quote
Old 10-17-2013, 04:29 PM   #9
Rain Man Rain Man is offline
Has never visited Finland.
 
Rain Man's Avatar
 
JezzBall Champion Mahjongg 2 Champion
Join Date: Jul 2001
Location: 1.61 KM high city
Casino cash: $62699407
Quote:
Originally Posted by CrazyPhuD View Post
Frankly all this will do is make athletes go bankrupt sooner. Maybe even while still playing.
Good point.

I initially found the concept intriguing, but the more I think about it, it's a bad idea.

If you buy stock in a company, you expect them to develop an ongoing revenue stream that increases every year, or at least keeps pace with inflation.

Athletes are going to have a hard time doing that. When they retire, the endorsements will go away and the game pay will go away, so at some point your stock is based on their ability to become successful businessmen after retirement. The odds of them replacing their playing and endorsement dollars is very low, so essentially you're going to be buying stock when they have three sources of income and holding it as they degrade to one source of income that is most likely the least exceptional.

Or maybe it's really structured more as an annuity where you're making a one-time payment to tap into their revenue stream during their playing days. That may make more sense, but given their injury risk it would have to be a highly discounted annuity.

Maybe if you used the second model and sold a mutual fund of 40 or 50 players you could manage that risk. I suspect there's not much chance of buying low, though, since this will probably only be offered to high-dollar athletes who are already earning significant dollars.

I think I'll opt out.
__________________
In the final seven games of the 2013 season, the Chiefs averaged 34.6 points per game, scored 38 points or more 4 times, and went 2-5. The NFL has ruined the sport.
Posts: 73,987
Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.
  Reply With Quote
Old 10-17-2013, 04:34 PM   #10
Nightfyre Nightfyre is offline
MVP
 
Nightfyre's Avatar
 

Join Date: Mar 2004
Location: Helena, MT
Casino cash: $85657
I would be interested in shorting the shit out of an index of these stocks.... or maybe investing in a reverse etf?
Posts: 15,695
Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.Nightfyre has an IQ even higher than Frankie's.
  Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump


All times are GMT -6. The time now is 10:33 AM.


Powered by vBulletin® Version 3.8.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.