First publicly traded athlete hits market
Fantex offers a way for investors to buy shares of a pro athlete. Buck French, Fantex co-founder and CEO, discusses the IPO of Vernon Davis from the San Francisco 49ers.
Most pro football fans already find themselves personally invested in the fortunes of their teams and favorite players. Now they can get a return on that investment.
In exchange for $4 million upfront, Davis agreed to sign over 10 percent of his future earnings to Fantex. As those earnings grow from contracts, endorsements and other "brand" income sources, investors receive dividends, the brokerage's co-founder and CEO, Buck French, told CNBC on Monday.
Investors also receive a piece of Davis' post-football career, French added.
"So should he become a broadcaster or a talk show host, that cash flow is all encapsulated within the security and linked to the security," French said on "Squawk on the Street." "We absolutely intend to pay out dividends as we collect the cash flow from Vernon Davis' brand."
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San Francisco 49ers Veron Davis
Houston Texans running back Arian Foster also signed with Fantex and had an IPO scheduled for last year, before his season-ending back surgery postponed the offering. French said Buffalo Bills quarterback EJ Manuel also agreed to sell shares of his future earnings on Fantex's exchange.
Fantex announced on Twitter just after noon ET on Monday that shares of Davis were now trading on its exchange:
Source:http://www.cnbc.com/
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