Brokerage Company To Offer Vernon Davis Stock
We reported earlier this month the Fantex Brokerage Services would be offering investors an opportunity to share in Arian Foster’s career earnings through the purchase of stock in his name. Now, the same corporation has announced that it has agreed to terms with 49ers tight end Vernon Davis.
Fantex CEO Buck French told ESPN.com that the company will now have the rights to 10 percent of Davis’ earnings, including his playing contract, endorsements and post career interests, after paying him $4 million up front as long as they can finance the deal.
The company says it will create a tracking stock that will enable fans to buy a piece of Fantex but specifically trade Davis’ stock depending on how his brand is performing.
As I said in my article about Arian Foster stock, I see this more as a fad than a long-term profitable investment. The key is still in the company’s ability to get young stars with upside potential to agree to share earnings, not athletes that are in or past their prime.