Want to invest in Arian Foster?

Why didn’t someone in QFL Nation come up with this?

Want to invest in NFL’s Arian Foster? Here’s a chance

You can put your money in stocks, commodities, real estate or myriad other ventures.

But you can’t watch any of those investments run with the ball on Sundays.

Beginning in about two weeks, that might change. A San Francisco-based company is announcing Thursday that it has made an agreement to obtain an interest in the current and future income of Houston Texans star running back Arian Foster in exchange for $10 million that it hopes to raise through the creation and sale of a tracking stock tied to Foster’s marketability.

The company, known as Fantex Holdings, has filed a registration statement with the Securities and Exchange Commission and soon will stage an initial offering of 1.055 million shares at $10 per share, co-founder and CEO Buck French told USA TODAY Sports. If successful, Fantex hopes to make deals that will result in the creation of tracking stocks tied to other athletes and entertainers.

The sale of all initial Foster shares will activate a contract with Foster that, according to French, has been in place since Feb. 28. Foster will get the $10 million from Fantex, which will get 20% of his football, endorsement and other brand-related income reaching back to Feb. 28 and going forward in perpetuity. If, for example, Foster gets a broadcasting contract after his playing career ends, Fantex will get 20% of his pay.

Why would Arian Foster agree to give up 20% of his future income into perpetuity if he wasn’t concerned about injury? What is the average lifespan of an NFL RB?

This will link you straight to the risk factors in the S-1.

This is how they address the biggest risk consideration in my mind.

Brand income may decrease due to factors outside the control of the contract party, such as an injury, illness, medical condition or death of the contract party, or due to other factors such as public scandal or other reputational harm to the contract party. In any such event, it is likely that the brand income with respect to such brand contract will not return to its prior levels or may cease completely.

Our focus for the foreseeable future is to enter into brand contracts with high-profile athletes who play professional sports. For example, Arian Foster is a running back in the NFL. There is a high risk of injury in many professional sports, and in particular in the NFL. Nevertheless, we do not maintain any insurance against the loss of any brand income as a result of injury, illness, medical condition or death of the contract party. Therefore, if a contract party becomes injured or sustains a serious illness or other adverse medical condition in the course of his professional career or otherwise, or dies, the brand income, and thus our ABI, would likely be dramatically less than we anticipate, and it is likely that such brand income would not return to its prior levels or may cease completely.

We also expect to receive brand income from existing and future endorsement agreements entered into by the contract party, as well as other public activities related to the primary occupation of the contract party, such as television broadcasting. We believe that the contract party’s ability to attract and maintain endorsement agreements as well as other sources of brand income will depend on the contract party’s reputation and ability to be viewed favorably by the public. Prior to entering into a brand contract, we assess the character and reputation of the contract party and the brand through our independent assessments, industry references and background checks conducted by third parties. However, there can be no assurance that our review process uncovers all facts and characteristics that could adversely affect the reputation of a contract party or the value of the brand contract. Even if our review process provides us with an accurate assessment of the character and integrity of a contract party as of the date of our review, there can be no assurance that circumstances in the future will not change, or that a contract party will continue to behave in a manner consistent with past behavior.

Any harm to the public reputation of a contract party, or association of the contract party’s name with a public scandal, may reduce the contract party’s ability to enter into and maintain future endorsements and other sources of brand income and as a result, brand income would likely decrease or may cease completely.

No insurance on injury?! I want to like this idea, but something doesn’t smell right. Why would Fantex kick this idea off with a player in the most injury prone position possible? Why not Peyton Manning?