Sports Markets and the Sports Economy

This is another player market and no approval from the leagues.

I see all sorts of problems here. It will be interesting to see how this goes.

I do find it interesting that John Elway is on the board.

The press is coming down hard on the negative side of this: http://keepingscore.blogs.time.com/2013/10/18/be-very-careful-buying-arian-foster-shares/

From their website:
“Holders of shares of a tracking stock will have no direct investment in the business or assets attributed to the brand contract, associated brand or athlete. Rather an investment in a tracking stock will represent an ownership interest in Fantex, Inc. as a whole.”

The way I read this is you have ‘interest in Fantex’ the company that is ‘flagged’ for a certain ‘athlete’. Fantex receives the income, skim 5% off the top, and distribute the remaining to those Fantex shares ‘flagged’ to that athlete.

That’s why they can go under SEC rules. You’re actually buying Fantex stock. That’s not what we’re proposing. Am I not reading it right? That’s the way I thought tracking stocks worked. You own the parent companie’s stock, it’s just ‘flagged’ to a certain division.

http://www.bloomberg.com/news/2013-11-01/fantex-to-buy-10-percent-of-future-earnings-of-49ers-davis.html

Good grief… 20% of Arian Foster and now 10% of Vernon Davis.
Good luck figuring this out.

http://www.forbes.com/sites/mikeozanian/2013/12/04/good-news-for-investors-fantex-unplugged-by-injuries-to-foster-and-davis/

There is no way they don’t know about us. I pitched John Elway personally in his Denver office in 2007 and he is on the Fantex board. All of these knock-offs and half-measures are attempts to find a way around our concepts. They are all doomed to failure. We have the formulas that work. Period.