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Is this real? Vernon Davis to become first publicly traded athlete?

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  • Is this real? Vernon Davis to become first publicly traded athlete?

    SAN FRANCISCO — Professional athletes frequently get traded to other teams, but San Francisco 49ers tight end Vernon Davis is about to be the first ever to be traded like a stock.

    Davis, an eight-year veteran of the National Football League, is serving as the litmus test for a risky concept: Whether sports stars should be treated like public companies, whose moneymaking potential can be bought and sold on an exchange by ordinary investors.

    San Francisco-based Fantex Inc. plans to operate the exchange and will orchestrate Davis' initial public offering of stock after getting regulatory approval from the Securities and Exchange Commission.

    The deal requires Fantex to pay Davis $4 million in exchange for 10 percent of his future earnings, including some of his off-field income. To cover Davis' fee, Fantex seeks to sell 421,100 shares of stock at $10 apiece. The company hopes to complete the initial public offering in the next few weeks.

    Davis, 30, will need to make more than $40 million just to deliver a small return on Fantex's investment in him.



    Read more: IPO seeks new way to trade star athletes, Vernon Davis is first up - The Denver Post http://www.denverpost.com/business/c...#ixzz2x1EEjmsX
    Read The Denver Post's Terms of Use of its content: http://www.denverpost.com/termsofuse
    Follow us: @Denverpost on Twitter | Denverpost on Facebook

  • #2
    Imagine what Foneco would cost. . .

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    • #3
      Pretty sure this was tried first with Arian Foster - it was promptly revoked when he got injured.

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      • #4
        Originally posted by mr007 View Post
        Pretty sure this was tried first with Arian Foster - it was promptly revoked when he got injured.
        yup. Buying athletes who are nearing the end or past their prime is just stupid

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        • #5
          Originally posted by Sly_Eli View Post
          yup. Buying athletes who are nearing the end or past their prime is just stupid
          Then the Raiders are primed for this.

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          • #6
            Nope.

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            • #7
              Originally posted by TheReverend View Post
              I feel like the last time black people were publicly traded that it didn't work out so well.

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              • #8
                Originally posted by TheReverend View Post
                I feel like the last time black people were publicly traded that it didn't work out so well.

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                • #9
                  Originally posted by TheReverend View Post
                  I feel like the last time black people were publicly traded that it didn't work out so well.

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                  • #10
                    Originally posted by Sly_Eli View Post
                    yup. Buying athletes who are nearing the end or past their prime is just stupid
                    Sharpe and Gonzalez would have been bargains at age 30. Gates would have been overvalued. Welcome to the market.

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                    • #11
                      Originally posted by TheReverend View Post
                      I feel like the last time black people were publicly traded that it didn't work out so well.

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                      • #12
                        /end thread.

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                        • #13
                          They need to start doing this with low level athletes coming out of college. People will invest small amounts for players they think will hit it big, and if you are right, you end up making a lot. Think if you invested in Tom Brady when he was first drafted. . .

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