Fantex postpones Arian Foster stock offering

AP

Texans running back Arian Foster will lose the rest of the season to back surgery.  He also will lose, at least for now, $10 million.

Fantex has announced that the Arian Foster stock offering has been scrapped for now, due the injury that has ended his season

“After consideration, we have made the decision to postpone the offering for Fantex Arian Foster,” Fantex CEO Buck said in a statement issued to PFT.  “We feel this is a prudent course of action under the current circumstances.  We continue to support Arian and his brand, and we wish him well in his recovery. We will continue to work with him through his recovery and intend to continue with this offering at an appropriate time in the future based on an assessment of these events.”

Foster had agreed to receive $10 million in exchange for payment of 20 percent of all football-related earnings to Fantex.  The deal would have proceeded only if all the stock had been sold, and the placement of Foster on injured reserve guarantees that the stock wouldn’t have been sold.

Fantex also plans to issue a Vernon Davis stock offering, with $4 million to Davis in exchange for 10 percent of his future earnings.

45 responses to “Fantex postpones Arian Foster stock offering

  1. Call me crazy but I think this is gonna work really well!…. For fantex.
    Seriously with how injuries and cuts work in the NFL this will be crazy volatile. And No way Arian makes 50 mil in the rest of his career (despite what you read in headlines very few have ever actually been paid this much)

  2. “We will continue to work with him through his recovery and intend to continue with this offering at an appropriate time in the future …. ” – The appropriate time should have been three years back.

  3. Is it just me, or does this curse seem to be worse then the Madden one?

    Arian Foster signs on: Back surgery, out for season.
    Vernon Davis signs on: Concussion, out for game and maybe more.

    Pro athletes, just invest your money wisely and stay away from this scam of epic proportions.

  4. While the subject of the investment may not have been the best (Foster will be 28 next season, but has the mileage of a 33 year old RB), the idea itself is not without merit.

    What if this brokerage firm partnered with Teddy Bridgewater, Clowney, or Johnny F? Stockholders pay them $40-50 million up front, and receive 20% of their earnings over their lifetime. Not just their NFL salary, but 20% of endorsement deals, autograph signings, personal appearance fees, OVER THEIR ENTIRE LIFETIME.

    Yeah, any of them could go the way of Jamarcus, and the investment will sour, but weighing the risk vs the reward is what its all about, and in that sense, investing in a player’s potential is not so different than investing in a company’s potential.

  5. no worries, cheese bays “novelty stock” has taken an huge hit the past couple of weeks too. The imaginary markets these days are not as stable as the 90’s.

  6. He will never be the same back again. I believe they used him up the last couple years. Reminds me a lot of the Jamaal Anderson situation with the Falcons back in the day. They ran that poor guy to death, set record for carries in a year and he was gone as quickly as he came.
    Sad that the shelf life for a hard working running back isn’t very long.

  7. The real money to be made would be to invest in a college player. It would be like an internet startup where most fail…but if you get the right guy, you could live off his success.

  8. Wasn’t ownership in another person decided back in the 1860’s?

    I get it’s the income stream, but I would be nervous because Foster is essentially telling you how he sees his career going from here. To him, it’s better to get $10M today than what’s to come. Unless there’s an insurance policy included, count me out.

  9. Ok, I get it. This is essentially insurance that the players buy in case one day they’re not able to maximize their earnings potential because of injury. And it works for them, unless they get injured. #fantexbs?

  10. Sounds like just a legit way to gamble as going to AC, Las Vegas or the Stock Market!!

    Looks pretty risky though…

    Wonder how the odds stack up against blackjack or craps though?

    If Fosters stock sale had already been done the buyers would be hurt’in right now!!!

  11. Talking about a high risk product.
    Not only are the investors beholding to player injury, but endorsement deals as well. Football players are notorious for not showing up for commercial endeavors and “Madison Ave.” has a sorry outlook for football players that aren’t “white”.
    But perhaps the biggest problem with the investment is the Player is paid up front, by the Broker, for marketing; so I ask, what is there incentive?

  12. This was one of the dumbest ideas I have ever heard of.

    Wanna know why the league is full of divas and me-first guys (much more than years past)?

    “We continue to support Arian and his brand”

    ^^crap like this concept.

  13. Given Foster’s injury history, you’re better off shortselling his stock.

    QBs have higher earning potential given their longevity, higher salaries, and endorsements.

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