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Vernon Davis shares can be traded as of Monday

Vernon Davis AP

As of Monday, Vernon Davis becomes a commodity.  Literally.

Per multiple reports, Fantex will open the market for trading Vernon Davis shares on Monday.  This means that 421,000 “shares” of stock in the 49ers tight end have been sold, at $10 each.  It also means that Davis will receive $4 million in exchange for 10 percent of all future football-related earnings.

Whether the price goes up (it may) or down (inevitably, it will), Fantex makes money by facilitating the transactions.

Jake Mann of The Motley Fool recently looked at whether it makes sense to “invest” in the 30-year-old Pro Bowler.  Mann’s lukewarm-at-best assessment assumes Davis will make $7 million per year through age 37, which as anyone who understands the economics of aging non-franchise quarterbacks knows is a stretch.

We continue to be uncomfortable with the entire process.  Every athlete has a shelf life, which means that a group of investors inevitably will end up buying something that at some point becomes worthless.

The players could end up regretting the short-term influx of cash, too, via consequences ranging from lawsuits brought by investors who lose money to tax evasion charges arising from efforts to shield future income (from, for example, autograph signings) from the Fantex umbrella.

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23 Responses to “Vernon Davis shares can be traded as of Monday”
  1. thestrategyexpert says: Apr 28, 2014 10:26 AM

    Well like any kind of money game, if a house or middleman is taking a cut, then you either outperform the game to share in the minority profits or you become part of the majority that feeds them.

  2. gojags says: Apr 28, 2014 10:26 AM

    Vernon at 30 is not a good investment. Clowney @ 22 or 23 if available would attract investors.

  3. doubleogator says: Apr 28, 2014 10:27 AM

    Prime example of narcissism…

  4. crubenst says: Apr 28, 2014 10:35 AM

    Fantex will be the big losers here. They don’t understand the interest in investing in players. The only interest would come from investing in a young player with a lot of upside potential. Nobody is excited in investing in an aging, declining star.

  5. statsdolie says: Apr 28, 2014 10:39 AM

    Wow trading people as commodities

  6. osiris33 says: Apr 28, 2014 10:41 AM

    In a related story, all shares are currently held by Kam Chancellor, since he’s owned Davis for years.

  7. jlgsoccer says: Apr 28, 2014 10:42 AM

    can i short him?

  8. jkirby317 says: Apr 28, 2014 10:46 AM

    Great idea if you find that being paid millions to play a children’s game isn’t quite enough.

  9. spfootballfan says: Apr 28, 2014 10:48 AM

    Yeah but imagine the jokes.

    Jim Harbaugh “I have traded Vernon Davis. I’ve decided that Yelp is a better investment at this time.”

  10. nonetruerthanblue says: Apr 28, 2014 10:49 AM

    This is such a bad idea. If you must invest in a player, invest in one where there’s longevity and safety in the career. Not where he average shelf life is 3.5 years. Everything past that is borrowed time.

  11. mathomp3 says: Apr 28, 2014 10:50 AM

    SELL!! SELL!! SELL!!

  12. mmsierra says: Apr 28, 2014 10:54 AM

    Those shares will be worth a LOT More if the 49ers draft Brandin Cooks or Odell Beckham in next month’s draft

  13. jw1991 says: Apr 28, 2014 10:55 AM

    so basically we can own a person? Sounds like slavery except these guys are getting paid great money to work. Ehh what do i know.

  14. newjerseygiants says: Apr 28, 2014 10:59 AM

    Did the Bitcoin guy dream up this Fantex thing too?

  15. citizenstrange says: Apr 28, 2014 11:06 AM

    Don’t do it.I can absolutely guarantee you that the only people who will make money on this are Vernon Davis and Fantex. I don’t know how this Ponzi scheme is in any way legal.

  16. chargerdillon says: Apr 28, 2014 11:12 AM

    Where can I sell my Aldon Smith Stock?

  17. buckshowalter says: Apr 28, 2014 11:14 AM

    What’s the Vernon Davis ticker symbol?

  18. pongonfl says: Apr 28, 2014 11:15 AM

    Didn’t David Bowie do this 30 years ago?

  19. PriorKnowledge says: Apr 28, 2014 11:27 AM

    But now there is little incentive for him to try to get top dollar.

  20. granadafan says: Apr 28, 2014 11:28 AM

    Wave a bunch of cash in front of players and they’ll grab at it with zero understanding of the consequences and expectations.

  21. kd75 says: Apr 28, 2014 11:38 AM

    It is like a interest only MBS bond.

    You buy it cheap and hope the coupon payments last long enough for you to earn a profit before the asset defaults (retirement).

  22. discosucs2005 says: Apr 29, 2014 3:42 AM

    It’s been a rough offseason for Niner fans, do you really have to put Vernon Davis, and Traded in the same headline?

  23. gopats23 says: Apr 29, 2014 8:49 AM

    How do so many take such a negative approach to this without even understanding the structure of the deal? This is why the 2% have all the money while the 98% instantly say “if it sounds too good to be true it probably is”.

    Do your self a favor and take the time to look into opportunities like this. Find all the information you can and run projections and proformas. Then you can make an intelligent decision on weather it is a good opportunity or not.

    I’m not saying it’s a good opportunity or bad. I’m just saying look into things like this a little bit before dismissing them, this is one of the most basic principles of the 2%…

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