Fantex

Last updated
Fantex Holdings, Inc.
Type Corporation
IndustrySecurities Issuer, Online Brokerage
Founded2012
Headquarters San Francisco, California, United States
Number of employees
0-50
Website www.fantex.com

Fantex Holdings, Inc. was 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. 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. [1] [2] [3]

Contents

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.[ citation needed ]

Fantex was launched in the fall of 2013, when the company filed its first IPO with the Securities and Exchange Commission. [4] Fantex's first offering was announced to be running back Arian Foster of the Houston Texans, but it was postponed due to injury. [4] In April 2014, Fantex proceeded with tight end Vernon Davis of the San Francisco 49ers as its first successful IPO. [5] Over the next 18 months, the company brought five more football player stocks to market. In September 2015, Fantex signed a contract with its first non-football athlete, Los Angeles Angels pitcher Andrew Heaney. In January 2016, the company signed a deal with its first golfer, Scott Langley. [6] Fantex has signed contracts with eleven athletes and has completed six IPOs worth a total of $25.8 million.[ citation needed ]

In August 2016, the company closed its platform to individual investors, and in March 2017 the company's CEO and co-founder, Cornell French, left Fantex. [7]

Timeline

DateAthleteEventBrand AcquiredValue
October 2013 Vernon Davis Signs Fantex brand contract. [8] 10%$4,200,000
February 2014 EJ Manuel Signs Fantex brand contract. [9] 10%$5,200,000
April 2014Vernon DavisCompletes $4.2 million initial public offering [10]
May 2014 Mohamed Sanu Signs Fantex brand contract. [11] 10%$1,640,000
July 2014EJ ManuelCompletes $5.2 million initial public offering (IPO). [12]
September 2014 Alshon Jeffery Signs Fantex brand contract. [13] 13%$8,400,000
November 2014Mohamed SanuCompletes $1.6 million initial public offering (IPO). [14]
February 2015 Michael Brockers Signs Fantex brand contract. [15] 10%$3,600,000
March 2015Alshon JefferyCompletes $8.4 million initial public offering (IPO). [16]
March 2015 Jack Mewhort Signs Fantex brand Contract. [17] 10%$2,700,000
March 2015 Kendall Wright Signs Fantex brand contract. [17]
May 2015Michael BrockersCompletes $3.6 million initial public offering (IPO). [18]
July 2015Jack MewhortCompletes $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. [20] 10%$3,110,000
April 2016 Allen Robinson Signs Fantex brand contract. [21] 12%$4,600,000
April 2016 Tyler Duffey Signs Fantex brand contract. [21] 10%$2,230,000
April 2016 Maikel Franco Signs Fantex brand contract. [21] 10%$4,350,000
April 2016 Collin McHugh Signs Fantex brand contract. [21] 10%$3,960,000
April 2016 Jonathan Schoop Signs Fantex brand contract. [21] 10%$4,910,000
April 2016 Yangervis Solarte Signs Fantex brand contract. [21] 11%$3,150,000
April 2016 Kelly Kraft Signs Fantex brand contract. [21] 15%$2,280,000
April 2016 Scott Langley Signs Fantex brand contract. [21] 15%$3,060,000
April 2016 Jack Maguire Signs Fantex brand contract. [21] 11%$2,070,000
April 2016 Kyle Reifers Signs Fantex brand contract. [21] 15%$1,740,000

Related Research Articles

<span class="mw-page-title-main">Security (finance)</span> Tradable financial asset

A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any form of financial instrument, even though the underlying legal and regulatory regime may not have such a broad definition. In some jurisdictions the term specifically excludes financial instruments other than equities and fixed income instruments. In some jurisdictions it includes some instruments that are close to equities and fixed income, e.g., equity warrants.

An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company. Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded.

<span class="mw-page-title-main">Short (finance)</span> Practice of selling securities or other financial instruments that are not currently owned

In finance, being short in an asset means investing in such a way that the investor will profit if the value of the asset falls. This is the opposite of a more conventional "long" position, where the investor will profit if the value of the asset rises.

<span class="mw-page-title-main">Tel Aviv Stock Exchange</span> Stock exchange located in Tel Aviv, Israel

TradeStation Group, Inc. is the parent company of online securities and futures brokerage firms and trading technology companies. It is headquartered in Plantation, Florida, and has offices in New York; Chicago; Richardson, Texas; London; Sydney; and Costa Rica. TradeStation is best known for the technical analysis software and electronic trading platform it provides to active traders and certain institutional trader markets. TradeStation Group was a Nasdaq GS-listed company from 1997 to 2011, until it was acquired by Monex Group, a Tokyo Stock Exchange-listed parent company of one of Japan's leading online securities brokerage firms.

<span class="mw-page-title-main">TD Waterhouse</span> Canadian financial services corporation headquartered in Toronto

TD Waterhouse Canada Inc. is a Canadian financial services corporation headquartered in Toronto, Ontario. It is a wholly owned subsidiary of Toronto-Dominion Bank. The company does business through several divisions, namely TD Direct Investing, TD Wealth Financial Planning, and TD Wealth Private Investment Advice. The TD Waterhouse brand was also formerly used for TD's American and British brokerages.

<span class="mw-page-title-main">Securities market</span> Component of the wider financial market

Security market is a component of the wider financial market where securities can be bought and sold between subjects of the economy, on the basis of demand and supply. Security markets encompasses stock markets, bond markets and derivatives markets where prices can be determined and participants both professional and non professional can meet.

Dean Witter Reynolds was an American stock brokerage and securities firm catering to a variety of clients. Prior to the company's acquisition, it was among the largest firms in the securities industry with over 9,000 account executives and was among the largest members of the New York Stock Exchange. The company served over 3.2 million clients primarily in the U.S. Dean Witter provided debt and equity underwriting and brokerage as mutual funds and other saving and investment products for individual investors. The company's asset management arm, Dean Witter InterCapital, with total assets of $90.0 billion prior to the acquisition, was one of the largest asset management operations in the U.S.

A reverse takeover (RTO), reverse merger, or reverse IPO is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. Sometimes, conversely, the public company is bought by the private company through an asset swap and share issue. The transaction typically requires reorganization of capitalization of the acquiring company.

Jefferies Group LLC is an American multinational independent investment bank and financial services company that is headquartered in New York City. The firm provides clients with capital markets and financial advisory services, institutional brokerage, securities research, and asset management. This includes mergers and acquisitions, restructuring, and other financial advisory services. The Capital Markets segment also includes its securities trading and investment banking activities.

Stock dilution, also known as equity dilution, is the decrease in existing shareholders' ownership percentage of a company as a result of the company issuing new equity. New equity increases the total shares outstanding which has a dilutive effect on the ownership percentage of existing shareholders. This increase in the number of shares outstanding can result from a primary market offering, employees exercising stock options, or by issuance or conversion of convertible bonds, preferred shares or warrants into stock. This dilution can shift fundamental positions of the stock such as ownership percentage, voting control, earnings per share, and the value of individual shares.

PaineWebber & Co. was an American investment bank and stock brokerage firm that was acquired by the Swiss bank UBS in 2000. The company was founded in 1880 in Boston, Massachusetts, by William Alfred Paine and Wallace G. Webber. Operating with two employees, they leased premises at 48 Congress Street in May 1881. The company was renamed Paine, Webber & Co. when Charles Hamilton Paine became a partner. Members of the Boston Stock Exchange, in 1890 the company acquired a seat on the New York Stock Exchange. Wallace G. Webber retired after the business weathered a major financial crisis of 1893.

In U.S. financial law, a unit investment trust (UIT) is an investment product offering a fixed (unmanaged) portfolio of securities having a definite life. Unlike open-end and closed-end investment companies, a UIT has no board of directors. A UIT is registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and is classified as an investment company. UITs are assembled by a sponsor and sold through brokerage firms to investors.

EFG Hermes Holding S.A.E. is an Egyptian financial services company present in the Middle East, North Africa, Sub-Saharan Africa, and South Asia regions and specializes in securities brokerage, asset management, investment banking, private equity and research in addition to finance lease, factoring, microfinance, Financial technology, mortgage, and insurance. EFG Hermes serves a range of clients including sovereign wealth funds, endowments, corporations, financial institutions, high-net-worth clients and individual customers. EFG Hermes is listed on the Egyptian Exchange (EGX) and London (LSE) stock exchanges. EFG Hermes has offices in Egypt, the United Arab Emirates (UAE), the Kingdom of Saudi Arabia (KSA), Pakistan, Oman, Kuwait, Jordan, Kenya, Nigeria, UK, United States and Bangladesh with over 4,500 people from 25 nationalities. They serve clients from the Middle East, North Africa, Europe and the United States. Currently, EFG Holding is listed as number 13 in Forbes' Top 50 Listed Companies in Egypt 2023.

A venture round is a type of funding round used for venture capital financing, by which startup companies obtain investment, generally from venture capitalists and other institutional investors. The availability of venture funding is among the primary stimuli for the development of new companies and technologies.

A series A round is the name typically given to a company's first significant round of venture capital financing. The name refers to the class of preferred stock sold to investors in exchange for their investment. It is usually the first series of stock after the common stock and common stock options issued to company founders, employees, friends and family and angel investors.

<span class="mw-page-title-main">Stock</span> Shares into which ownership of the corporation is divided

Stocks consist of all the shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares. This typically entitles the shareholder (stockholder) to that fraction of the company's earnings, proceeds from liquidation of assets, or voting power, often dividing these up in proportion to the amount of money each stockholder has invested. Not all stock is necessarily equal, as certain classes of stock may be issued, for example, without voting rights, with enhanced voting rights, or with a certain priority to receive profits or liquidation proceeds before or after other classes of shareholders.

<span class="mw-page-title-main">Actua Corporation</span> Defunct venture capital firm

Actua Corporation was a venture capital firm. During the dot com bubble, the company had a market capitalization of over $50 billion. The company was originally known as Internet Capital Group, Inc. and changed its name to Actua Corporation in September 2014. In 2018, the company underwent liquidation.

The technology company Facebook, Inc., held its initial public offering (IPO) on Friday, May 18, 2012. The IPO was one of the biggest in technology and Internet history, with a peak market capitalization of over $104 billion.

HDFC Securities Limited is a financial services intermediary and a subsidiary of HDFC Bank, a private sector bank in India. HDFC Securities was founded in year 2000 and is headquartered in Mumbai, with branches across major cities and towns in India.

References

  1. ↑ "Skin in the Game; Athletic Investment", The Economist , October 26, 2013, via HighBeam Research.
  2. ↑ 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.
  3. ↑ 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?", The Wall Street Journal , November 8, 2013.
  4. 1 2 "Here's why Fantex, the athlete stock exchange, is working". Fortune. Retrieved 2020-02-27.
  5. ↑ Daniel Brown, "49ers' Vernon Davis Worried about Brand as Much as Game", Oakland Tribune , June 16, 2014, via HighBeam Research.
  6. ↑ "Fantex, the 'athlete stock exchange,' signs first golfer". finance.yahoo.com. Retrieved 2020-05-14.
  7. ↑ "Fantex founder leaves athlete stock exchange". Financial Times. 3 April 2017. Retrieved 2020-03-16.
  8. ↑ "Fantex Moves Forward with Football Player IPO"
  9. ↑ "EJ Manuel stock to be offered"
  10. ↑ "Vernon Davis stock hits $12 in debut"
  11. ↑ "Company Sells Stock in Bengals Player"
  12. ↑ "Fantex Completes Second Football Player IPO"
  13. ↑ "Fantex Signs Chicago Bears Player for an IPO"
  14. ↑ "Investors paid this much for Bengals' Sanu stock"
  15. ↑ "Fantex, Inc. Enters Into Brand Contract With Rams Defensive Lineman Michael Brockers"
  16. ↑ "Fantex Series Alshon Jeffery Convertible Tracking Stock Begins Trading on Fantex.com"
  17. 1 2 "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. 1 2 "Fantex, Inc. Enters Brand Contracts With Terrance Williams and Ryan Shazier"
  21. 1 2 3 4 5 6 7 8 9 10 "Fantex, Inc. Announces Brand Agreements With Ten New Athletes in Three Professional Sports | Business Wire". www.businesswire.com. Retrieved 2017-02-07.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.