Arian Foster will make $10 million by 'going public' (Yahoo Sports)

Arian Foster will make $10 million by ‘going public’ (Yahoo Sports)

Andrew Ross Sorkin’s Dealbook (The New York Times) is out with a new article on the latest betting scheme being proposed by Wall Street; a market to buy and sell real financial interests in entertainment stars.  Fantex Holdings announced today that it will open a marketplace in the US where investors can trade an interest in the future economic success of professional athletes.  Fantex is starting with an IPO for a minority stake in Arian Foster, the Pro Bowl star running back of the Texans.  They intend to sell approximately $10.5 million worth of stock, representing 20% in Arian Foster’s future brand income.

Foster is coming off a hot season and new $43.5 million contract of which $21 million is up for grabs for the investors in his IPO – the the other $22.5 million includes a $12.5 million signing bonus and the pro rata amount he has earned in 2013.  The timing of this going public transaction couldn’t be better for Foster.  A total of $10 million will go directly to Foster, with the other $500,000 for structuring costs.

So, if Foster ends up making less than $50 million in the future, he ends up winning this deal.  Not a bad insurance policy.

“Fantex represents a powerful new opportunity for professional athletes, and I wish it were available during my playing days,” John Elway (former Denver Bronco star QB and Fantex board member) said in a statement.

The company has brought in talent from Wall Street and Silicon Valley including John Rodin, the co-president of hedge fund Glenview Capital and Joshua Levine, former senior executive of E*Trade.

Read the full article: Want a Piece of a Star Athlete?  Now, You Really Can Buy One