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E.J. Manuel IPO expected soon

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Anyone interested in diversifying their portfolio of holdings in professional athletes will be able to buy stock in Bills quarterback E.J. Manuel soon.

Manuel signed with Fantex, the brokerage that buys percentages of athletes’ future earnings and then sells shares to the public, in February and Mike Rodak of ESPN.com reports that the company is expected to announce the date of an initial public offering of Manuel’s shares on Thursday. Per Rodak, the company is paying Manuel $4.97 million for 10 percent of his “brand income” and the company is expected to offer 523,700 shares to the public at $10 a share.

The company projects Manuel will earn $104 million before and after his playing career, an assessment that would make any investors in Manuel stock as tied to his growth in 2014 as a member of the Bills organization. If Manuel becomes a quality NFL starter, that $104 million in earnings will likely be a low estimate of his earning and the Bills will be as happy as Fantex investors. If signs of that development aren’t there, though, Manuel may not be a starter long enough to make even a quarter of that amount.

The company has already started trading stock in 49ers tight end Vernon Davis, whose issue is trading at $11 as of Thursday morning after also opening trading at $10 a share. Fantex also struck a deal with Texans running back Arian Foster, but an initial offering has been postponed indefinitely.

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32 Responses to “E.J. Manuel IPO expected soon”
  1. leftlaneisforpassingonly says: May 1, 2014 9:34 AM

    How can I short this stock?

  2. somethingsmellsrotten says: May 1, 2014 9:36 AM

    Ummm…no thank you.

  3. barsfordays says: May 1, 2014 9:41 AM

    Manuel = Seneca Wallace 2.0

  4. billsin20xx says: May 1, 2014 9:46 AM

    Sounds like a deal paying $4.97 for a 10% share – then selling 523,000 shares at $10. They sell one share they make a profit! LOL

  5. bpjensen says: May 1, 2014 9:48 AM

    They paid him $4.97 for 10% of Manuel’s future earnings? That sounds like a real bargain!

  6. elliottcovert says: May 1, 2014 9:55 AM

    The reason I’m not confident about athlete stock offerings in general is that no confident athlete would assume that the money that one of these companies offered would exceed his future earnings.

  7. mzim2756 says: May 1, 2014 10:00 AM

    Will crash faster than Enron

  8. j0esixpack says: May 1, 2014 10:04 AM

    I already own a share of Vernon Davis’ left pinky toenail

    Perhaps owning a nostril hair of Manuel would be a worthy investment.

    Nah – I’m just going to put all my money into the concealable weapons industry and that way when society crumbles I’m all set

  9. mad55555 says: May 1, 2014 10:06 AM

    well least you can buY this guys stock while he is worth a penny but I cannot guaranteethat he will ever be worth too much more.

  10. jamaalcharlesincharge says: May 1, 2014 10:09 AM

    $104 mil way too high for Manuel. Government contractors must have come up with that number.

  11. joeblowsintoronto says: May 1, 2014 10:18 AM

    I’m just happy the Bills are staying in Buffalo. Maybe Bon Jovi can buy our Maple Leafs.

  12. chargerdillon says: May 1, 2014 10:31 AM

    100 mill projection for a guy coming off a torn acl…. so not only do they expect him to bounce back, but maintain his starting position and go on to earn a second lucrative contract.

    All this based off of one incomplete season in which he was injured.

    You can’t get rid of his stock fast enough

  13. nickster31 says: May 1, 2014 10:39 AM

    All kidding aside, dropping $50 bucks on this might not be a bad idea. If Jump Ball Joe Flacco can land a $120 million contract, anything is possible.

  14. nickster31 says: May 1, 2014 10:45 AM

    I was wondering, could we one day see college players doing this? I know the NCAA says they cant talk to an agent without losing eligibility, but would this be the same?

  15. floriosbigtoe says: May 1, 2014 10:54 AM

    They know he plays in Buffalo, right? Manuel Flakes just doesn’t have the same ring to it.

  16. granadafan says: May 1, 2014 10:58 AM

    When does the Andrew Luck or Russell Wilson IPO come out?

  17. jpaq68 says: May 1, 2014 10:58 AM

    Wow, they’re going to have to invent new words to truly describe just what a bad idea of spending one thin dime on this would be.

  18. dxh02 says: May 1, 2014 11:16 AM

    I guess the Fantex crew didn’t watch the last five minutes of ‘Boiler Room’

  19. kd75 says: May 1, 2014 11:32 AM

    My investment in Ryan Fitzpatrick has already paid off…

  20. harrisonhits2 says: May 1, 2014 11:49 AM

    This company is a scam that is a sucker’s bet. Setting aside that Manuel may or may not turn out to be a successful NFL QB that gets a couple big contracts and endorsements later in his career, all it takes is one injury to end or deflate those earnings massively.

    Personally I think there’s a snowball’s chance in hell of Manuel earning 100 mil or anything close to it.

  21. bleedgreen says: May 1, 2014 11:55 AM

    Its the wrong player, but they’re moving in the right direction with young players. Arian Foster and Vernon Davis are closer to out of the league than coming in. I give Arian Foster another 2 years, Davis maybe 4. By doing this with young QBs, you have a much better chance of actually making money. Andrew Luck should be in the league for 12-15 years. I just don’t think he’s stupid enough to mortgage his future earnings for some money right now. This isn’t a good deal for ANYONE involved except for players that know deep down that they’re not gonna be in the league much longer.

  22. buffalodiehard says: May 1, 2014 12:03 PM

    I’m torn on whether this is a bad sign.

  23. thegreatgabbert says: May 1, 2014 12:28 PM

    Junk bonds.

  24. realfootballfan says: May 1, 2014 12:32 PM

    That one’s going to be a dud.

  25. clayton268921 says: May 1, 2014 12:45 PM

    Correct me if I’m wrong, I’m new to stocks, but if Manuel plays ten more years at an average salary of $5 million (current starter money combined with later years as a back up assuming he doesn’t cut it) than fantex makes $5 million solely off of his playing career, more than they invested in him overall. That’s a mediocre to bad career considering he was a first round pick so how does this deal seem good to Manuel? Does he make anything off of the sticks being traded?

  26. klingonj says: May 1, 2014 12:52 PM

    wasnt this a Honeymooners episode where Ralph sells 35% of future earnings…………..

  27. kmack831 says: May 1, 2014 1:27 PM

    10 % of 104 M = 10.4M so the value of the stock might DOUBLE from $10 to $20 bucks a share!!

    WOW!! BD!!!!

    Risk is your 10 dollars is worth as much as toilet paper!!

    Reward will be a LONG time to see the stock rise to $20 a share.

    Then what?? Say in 2 years he signs a big deal… 100M for 6 years.

    Everyone Sells @20 the market Crashes??

    After he signs the contract how does that effect the Stock? Since he gets X Amount per year.

    2020 He Signs for 100 M
    2021 – he gets 25 guarantee and 12 M Base (STOCK is at what price??)
    2022 – 16 M against Cap (Stock is at What??)

    Real Stocks don’t have a shelf life…

    Real winners is FanTEX making 260K on the IPO and on Every Sell / BUY!!!

    Player gets money up front, maybe Tax issues, maybe they Invest it and make more than the 10% they lose. 10 % in the future might not be that bad to the almost 5 Million now!

  28. misteranderson41 says: May 1, 2014 3:32 PM

    what a joke, all these nfl player IPOs

  29. richc111 says: May 1, 2014 3:47 PM

    Question: as part of the CBA the players get a % of all revenues generated by the NFL. So does the NFL get a percent of any revenue generated by their employees. I would guess not which don’t seem right. These players are using the NFL and the exposure they get to make money.

  30. mackcarrington says: May 1, 2014 7:40 PM

    Probably better to invest in Fantex.
    And does Manuel really need $5 mil. in his pocket right now?

  31. wishingtonredslur says: May 1, 2014 10:29 PM

    Shouldn’t he wait until he at least have some value? Like maybe when he has logged an actual full year?

  32. thetigerleg says: May 1, 2014 11:43 PM

    I wonder if it’s 10% of his pre- or after-tax income. If it’s pre-tax income, that 10% is more like 25% of his take home pay. Ouch.

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