Fantex Pulls IPO

Fantex has pulled its initial public offering. In a filing with the SEC on Wednesday, Fantex pulled its IPO, citing the termination of its relationship with Houston Texans running back Arian Foster.

According to a separate filing with the SEC, Fantex disclosed that Foster's agreement with the company was terminated on November 10.

Foster was the first athlete signed by Fantex back in 2013, with the company and its shareholders buying a 20% stake in Foster's future earnings for $10 million. Foster is currently on injured reserve after tearing his Achilles tendon last month.

Fantex pays athletes an up-front amount in exchange for a percentage of the athlete's future earnings. For a pro-football player, who is more likely than not to see their career last just a handful of years, this deal gets them some cash up-front as a hedge against future career turmoil.

The table below, which comes from the company's most recent filing with the SEC, shows how much of each athlete's future earnings it had a claim on and what it paid for them:

So it looks like right now you're going to have to wait to get a piece of a pro athlete.

#Sports #Economy #ArianFoster #NFL #Fantex #NorthAmerica