Vernon Davis stock opens for trading on Fantex marketplace
If you think San Francisco 49ers tight end Vernon Davis is going to have a big season, you may want to buy stock in him. Literally.
San Francisco-based startup Fantex recently sold 421,100 shares of stock linked to Davis. The shares acquire value based on Davis's future income, according to a report from the New York Times.
On Monday, shares of Vernon Davis made their debut on the market at $10 per share. The New York Times report summarized the details of the stock:
The shares simulate a 10 percent interest in Davis’s future income, including the value of his playing contracts, corporate endorsements and appearance fees. For investors to make money, therefore, the total value of Davis’s future income has to exceed $42 million.
The “vast majority” of the shares were sold to individual investors, with some buying just one share and others buying the maximum allowed amount of 5 percent of the offering, Buck French, the co-founder and chief executive, said on Monday. The shares not sold to investors were purchased by Fantex.
Originally, Fantex planned to sell shares of Houston Texans running back Arian Foster, but the company delayed its initial public offering after Foster injured his back and landed on injured reserve. Davis's stock can be traded on an exchange managed by Fantex.
Davis, 30, is a two-time Pro Bowler. Last year, he caught 52 passes for 850 yards and 13 touchdowns, the latter tying a career-high.