A website called Fantex will not allow you to buy your own Vernon Davis stock.
I have no idea how this works, so I checked out Fnatex for myself and they explain everything.
NOT JUST ANY BROKERAGE SERVICE.
Fantex is an all-new marketplace where you can buy and sell shares linked to the value and performance of the brand of an athlete — It’s real money, real investments, and a real athlete’s brand. However, because you can only trade Fantex, Inc. tracking stocks on this platform, there is no assurance as to the development or liquidity of any trading market.
OWN STOCK LINKED TO THE VALUE AND PERFORMANCE OF AN ATHLETE’S BRAND*.
The stock available is common stock issued by Fantex, Inc. This tracking stock is linked to the economic performance and value of a brand of a professional athlete – such as income earned from contracts, endorsements and appearance fees.
FANTEX, INC. IS A BRAND BUILDING COMPANY.
Fantex, Inc. creates a unique brand building platform for athletes to increase the reach and engagement of their brand. Fantex, Inc. signs a contract with an athlete to acquire a minority interest in their brand and builds a plan with a goal to increase its value, leveraging its marketing expertise.
IT’S A REAL STOCK.
The tracking stock offered is pursuant to a registration statement that has been filed with the Securities and Exchange Commission (SEC).
MORE DETAILS ABOUT FANTEX, INC. TRACKING STOCK.
To finance the acquisition of the contracts, Fantex, Inc. intends to offer equity securities in Fantex, Inc. and establish a tracking stock linked to the separate economic performance and value of the brand associated with the tracking stock – such as income earned from contracts, endorsements and appearance fees. Fantex, Inc. will typically attribute 95% of the acquired brand income under the brand contract to the tracking stock. In addition Fantex, Inc. will attribute to the brand certain expenses of Fantex, Inc. including in certain cases specified expenses related to other tracking stocks that may be issued in the future. Holders of shares of a tracking stock will have no direct investment in the business or assets attributed to the brand contract, associated brand or athlete. Rather an investment in a tracking stock will represent an ownership interest in Fantex, Inc. as a whole.
WE’LL LET YOU KNOW IF ANOTHER ONE’S COMING.
The only tracking stock available on Fantex is one that has gone through the SEC registration process. The goal is to sign additional athlete brand contracts and offer tracking stocks linked to those brands. If this happens, we’ll notify you both on the website and via email for those who have signed up.
ADDING UP ATHLETE BRAND VALUE.
An athlete’s brand value is made up of certain income generated throughout both their playing and post-career. This includes income from items such as playing contracts, endorsements, and appearance fees, a percentage of which Fantex, Inc. is entitled to receive under the brand agreement. For more specifics, please review the prospectus for the tracking stock.
IT DOESN’T HAVE TO END AT RETIREMENT.
This is a stock linked to the value and performance of an athlete’s brand, not the person. When the athlete retires, their brand may or may not continue to generate income into the future (e.g. endorsements, appearances, broadcasting, etc.). As long as the brand continues to generate income as defined in the brand contract, Fantex, Inc. is entitled to continue to receive payments pursuant to its brand agreement.
BUT IF THE BRAND STOPS GENERATING BRAND INCOME…
The tracking stock may be converted into Fantex, Inc. Platform common stock. If the tracking stock is converted, then you should not expect many shares of Platform common stock upon conversion.
WHAT IS FANTEX, INC. PLATFORM COMMON STOCK?
If and when additional brands are added to our platform, Fantex, Inc. Platform common stock is intended to track and reflect the economic performance of all of our tracking brands, by having a small percentage (5%) of acquired brand income from each brand.