The gambling market is ripe, evident through the success of the casino industry, and the rising popularity of online gambling. New Jersey will soon be allowing Atlantic City casinos to offer their services online, with many other states anticipated to follow their lead. The Fantasy Sports Trade Association stated that in 2010, there were over 32 million players in North America. The Huffington post has even estimated that fantasy football has cost employers upwards of $6 billion in lost productivity during the workday.
A new company is allowing consumers to purchase stock in their favorite athletes. Fantex has announced partnership with two of the NFL’s most popular athletes, Arian Foster and Vernon Davis.
Fantex previously paid 10 million for a 20 percent stake in Arian foster’s future earnings and also have plans to buy a 10 percent of Davis’ future earnings for 4 million; with the hopes of selling investors shares in a stock linked to their economic performance, which includes the value of playing contracts, endorsements, and appearance fees.
Sports fans have been fantasizing for years about the opportunity to financially invest in the performance of their favorite players but market analysts wonder about the longevity and reliability of such a venture. The deal is great for players without guaranteed contracts, insuring them against losing money due to injuries.
Runningback Arian Foster recently announced that he will not be able to return for the remainder of the 2013-14 season due to complications with a back injury. While many speculate what will happen to the value of the “Arian Foster brand” The company has announced that it will postpone the stock offering
“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.”