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Start-up invests in athletes
It's a unique new way to invest your money. Sports fans can now buy stock in their favorite athletes. A start-up company called Fantex is behind this new investment.
"we're interested in working with Arian because he has attributes beyond just being a pro ball running back. His approach to life and things off the field make him an attractive candidate for us."
Star NFL running back Arian Foster is the first athlete to sign on with Fantex -- a San Francisco-based start-up that wants to allow fans to buy and sell shares of their favorite athletes.
Fantex will pay Foster $10 million dollars upfront.
In exchange, investors get the opportunity to earn 20 percent of the running back's future income.
Including -- money from playing contracts, endorsements, and appearance fees.
Fans can buy a stake at $10 a share.
They also have to invest a minimum of $50.
But veteran sports branding consultant Robert Tuchman is punting the foster stock.
"It's very difficult to monetize athletes' brands post playing days. It's very difficult to monetize athletes' brands while they're playing."
Fantex is looking for stars and amateurs alike with significant growth potential.
"How you play and the performance of your play gives you a platform in which to have a voice and a marketplace, which impacts your brand."
Investors, though, should tread carefully. Fantex lists 84 risk factors on its website, including player injury and unforeseen issues with its trading platform.
And, if Fantex doesn't raise enough money in the initial offering, it says it's scrapping the deal.
Still, the company is bullish about bringing sports investing to the average joe.
"We really embrace this concept of him being a trailblazer and it fits his brand and how we see him and we think there is a desire for that out in the marketplace."