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How Athlete IPO’s Will Change The Face Of Sports Management

How Athlete IPO’s Will Change The Face Of Sports Management

Fantex introduces stock options on your most admired professional athlete.

Serena Chu

Between company stocks and foreign exchange, there are a good amount of investment strategies out there. If you think you’ve mastered the art of trading, think again. Fantex is a new concept of exchange that lets you purchase IPOs of professional athletes. The value of the stock solely depends on the overall value of the athlete, as well as the number of injuries the player acquired throughout his/her career.

The San Francisco-based start-up is opening a new trading platform for those with a keen eye for competitive sports and player performance. After securing Arian Foster, the running back of the Houston Texans, the company will be receiving 20% of his future earnings in exchange for $10 million, which will be raised from investors who could buy his “brand” share.

Fantex 2

While the concept does hold a level of intrigue, some people have expressed their disapproval. Among the many, Reuters columnist Felix Salmon finds the idea to be distasteful and utterly dehumanizing. But for those who are in love with the sport, this gives them an opportunity to make a vote of confidence for a particular athlete. The company is banking on the idea that people will invest because it can be an expression of a personal connection.

How does this make you feel? Are you waiting with a handful of cash in hand, ready to jump at the opportunity? Or are you appalled by the thought of an athlete not being referred as an individual, but as a brand?


Source: UPENN Wharton

Images: Fantex

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