Your clients could be on the way to scoring a touchdown with a new equities investment... He's 6'4" and can throw a wide pass like nobody's business.
Your clients could be on the way to scoring a touchdown with a new equities investment... He's 6'4" and can throw a wide pass like nobody's business.
Fantex Holdings in the states is set to offer athlete securities, according to The New York Times, suggesting share prices will be decided by a pro-ball player's earning track record -- including his contracts, endorsements and personal appearance earnings.
The U.S. company even has its first offering lined up: Houston Texans running back Arian Foster. After an initial public offering for a minority stake in Foster, there will be US$10.5 million in stock put on the market, with a buy-in minimum set at US$50.
There will be 1.06 million shares offered, although Fantex will reportedly cancel the IPO if buyer numbers don't match the number of shares on offer.
But Fantex isn't stopping with Foster. According to the Times, the exchange-listed company plans to sell stock in other football players, singers and, even, celebrity actors.
Fantex maintains that the IPOs will conform to SEC regulations "pursuant to a registration statement that has been filed with the commission."
Bringing that kind of offering to the TSX might be considerably more difficult, joked one Toronto advisor Thursday.
"So you buy shares in Sidney Crosby or Jarome Iginla," said GTA financial planner AJ Mukalejekr, "but then who?"
