http://finance.yahoo.com/news/risky-ipo-seeks-way-trade-183553888.html
Risky IPO seeks new way to trade star athletes
San Francisco 49er star Vernon Davis to serve as litmus test for IPOs tied to sports careers
SAN FRANCISCO (AP) -- Professional athletes frequently get traded to other teams, but San Francisco 49ers tight end Vernon Davis is about to be the first ever to be traded like a stock.
Davis, an eight-year veteran of the National Football League, is serving as the litmus test for a risky concept: Whether sports stars should be treated like public companies, whose moneymaking potential can be bought and sold on an exchange by ordinary investors. San Francisco-based Fantex Inc. plans to operate the exchange and will orchestrate Davis' initial public offering of stock after getting regulatory approval from the Securities and Exchange Commission.
The deal requires Fantex to pay Davis $4 million in exchange for 10 percent of his future earnings, including some of his off-field income. To cover Davis' fee, Fantex seeks to sell 421,100 shares of stock at $10 apiece. The company hopes to complete the initial public offering in the next few weeks.
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Risky IPO seeks new way to trade star athletes
San Francisco 49er star Vernon Davis to serve as litmus test for IPOs tied to sports careers
SAN FRANCISCO (AP) -- Professional athletes frequently get traded to other teams, but San Francisco 49ers tight end Vernon Davis is about to be the first ever to be traded like a stock.
Davis, an eight-year veteran of the National Football League, is serving as the litmus test for a risky concept: Whether sports stars should be treated like public companies, whose moneymaking potential can be bought and sold on an exchange by ordinary investors. San Francisco-based Fantex Inc. plans to operate the exchange and will orchestrate Davis' initial public offering of stock after getting regulatory approval from the Securities and Exchange Commission.
The deal requires Fantex to pay Davis $4 million in exchange for 10 percent of his future earnings, including some of his off-field income. To cover Davis' fee, Fantex seeks to sell 421,100 shares of stock at $10 apiece. The company hopes to complete the initial public offering in the next few weeks.
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