Fantex

Fantex Holdings, Inc.
Corporation
Industry Securities Issuer, Online Brokerage
Founded 2012
Headquarters San Francisco, California, United States
Number of employees
 0-50
Website www.fantex.com

Fantex Holdings, Inc. is a U.S.-based financial services and brand development company headquartered in San Francisco, California which provides an investment service allowing investors to trade securities tied to the cash flows of professional athletes and their brand contracts with Fantex.[1] Since their first Initial Public Offering of shares linked to future earnings of San Francisco 49ers Pro Bowl tight end Vernon Davis in October 2013, Fantex has continued to initiate brand contracts and list more athletes on their exchange. The Fantex asset class has been compared to investments similar to the celebrity bonds offered by professional entertainers, including the 1997 offering by David Bowie.[2][3][4]

Fantex is a holding company with two primary businesses:

  1. Fantex, Inc. – a securities issuer that files registration statements with the Securities and Exchange Commission.
  2. Fantex Brokerage Services, LLC – an online brokerage firm and Financial Industry Regulatory Authority (FINRA) member.

History

Fantex was founded in 2012 by David Beirne, former general partner of Benchmark Capital, Buck French, and Dave Mullin. The company’s board of directors include John Elway (member of the Pro Football Hall of Fame and GM of the Denver Broncos), Josh Levine (former CTO/COO of E-Trade), and Duncan Niederauer (former Chief Executive Officer of the New York Stock Exchange). Fantex’s board of advisors consists of business executives and former professional athletes, including Jack Nicklaus.

Fantex was launched in the fall of 2013, when the company filed its first IPO with the Securities and Exchange Commission. Fantex's first offering was announced to be running back Arian Foster of the Houston Texans, but it was postponed due to injury. Fantex proceeded with tight end Vernon Davis of the San Francisco 49ers as its first successful IPO.[5] Fantex has signed contracts with eleven athletes and has completed six IPOs worth a total of $25.8 million.[6]

Timeline

Date Athlete Event Brand Acquired Value
October 2013 Vernon Davis Signs Fantex brand contract.[7] 10% $4,200,000
February 2014 EJ Manuel Signs Fantex brand contract.[8] 10% $5,200,000
April 2014 Vernon Davis Completes $4.2 million Initial Public Offering[9]
May 2014 Mohamed Sanu Signs Fantex brand contract.[10] 10% $1,640,000
July 2014 EJ Manuel Completes $5.2 million Initial Public Offering (IPO).[11]
September 2014 Alshon Jeffery Signs Fantex brand contract.[12] 13% $8,400,000
November 2014 Mohamed Sanu Completes $1.6 million Initial Public Offering (IPO).[13]
February 2015 Michael Brockers Signs Fantex brand contract.[14] 10% $3,600,000
March 2015 Alshon Jeffery Completes $8.4 million Initial Public Offering (IPO).[15]
March 2015 Jack Mewhort Signs Fantex brand Contract.[16] 10% $2,700,000
March 2015 Kendall Wright Signs Fantex brand contract.[17]
May 2015 Michael Brockers Completes $3.6 million Initial Public Offering (IPO).[18]
July 2015 Jack Mewhort Completes $2.7 million Initial Public Offering (IPO)..[19]
September 2015 Andrew Heaney Signs Fantex brand contract. 10% $3,340,000
September 2015 Terrance Williams Signs Fantex brand contract.[20] 10% $3,060,000
September 2015 Ryan Shazier Signs Fantex brand contract.[21] 10% $3,110,000

References

  1. ↑ "Fantex: New Asset Category"
  2. ↑ "Skin in the Game; Athletic Investment", The Economist, October 26, 2013  – via HighBeam Research (subscription required) .
  3. ↑ Neil Irwin, "You can now buy shares in an NFL running back. This is why the returns will probably be awful." The Washington Post, October 18, 2013.
  4. ↑ Joe Queenan, "It's Time for Wall Street to Profit From Celebrity Duds: With shares in athletes to be sold, can money be made if they fail?", Wall Street Journal, November 8, 2013.
  5. ↑ Daniel Brown, "49ers' Vernon Davis Worried about Brand as Much as Game", Oakland Tribune, June 16, 2014  – via HighBeam Research (subscription required) .
  6. ↑ Bloomberg
  7. ↑ "Fantex Moves Forward with Football Player IPO"
  8. ↑ "EJ Manuel stock to be offered"
  9. ↑ "Vernon Davis stock hits $12 in debut"
  10. ↑ "Company Sells Stock in Bengals Player"
  11. ↑ "Fantex Completes Second Football Player IPO"
  12. ↑ "Fantex Signs Chicago Bears Player for an IPO"
  13. ↑ "Investors paid this much for Bengals’ Sanu stock"
  14. ↑ "Fantex, Inc. Enters Into Brand Contract With Rams Defensive Lineman Michael Brockers"
  15. ↑ "Fantex Series Alshon Jeffery Convertible Tracking Stock Begins Trading on Fantex.com"
  16. ↑ "Here’s why Fantex, the athlete stock exchange, is working"
  17. ↑ "Here’s why Fantex, the athlete stock exchange, is working"
  18. ↑ "Fantex Series Michael Brockers Convertible Tracking Stock Begins Trading at Fantex.com"
  19. ↑ "Fantex Series Jack Mewhort Convertible Tracking Stock Begins Trading at Fantex.com"
  20. ↑ "Fantex, Inc. Enters Brand Contracts With Terrance Williams and Ryan Shazier"
  21. ↑ "Fantex, Inc. Enters Brand Contracts With Terrance Williams and Ryan Shazier"
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