Back in late October, word came out that 49ers tight end Vernon Davis had joined up with Fantex to offer stock in his personal brand. Fantex is paying Vernon Davis $4 million for a 10 percent interest in his brand. In order to pay that $4 million, they are offering up 421,100 shares of "Vernon Davis" at $10 per share. The value in this will come as Vernon Davis continues his career, on and off the field. As I understand it, the price of the stock can gain and lose value based on what Vernon is doing through his playing and post-playing career. If he signs a huge new contract anytime soon, that's a big boost on that value. If he retires and then signs a deal with a major network to serve as a commentator, more value. His current Jamba Juices are not a part of this, but if he opens any new Jamba Juice stores, that's more value. Of course, if he is arrested, or he struggles to find certain post-career earnings opportunities, the value could go down. Trading of the stock will only be available at Fantex.com. There will be early questions of liquidity, but Fantex has to be hoping people gain interest and see the value of investing in athletes. As more athletes are added to their market place, more value could be found.
Vernon Davis Fantex IPO is underway
Niners Nation | Feb 4