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.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.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.
Fantex is a holding company with two primary businesses: Fantex, Inc. – a securities issuer that files registration statements with the Securities and Exchange Commission. 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.
Fantex was launched in the fall of 2013, when the company filed its first IPO with the Securities and Exchange Commission. Fantex's first offering was announced to be running back Arian Foster of the Houston Texans, but it was postponed due to injury. In April 2014, Fantex proceeded with tight end Vernon Davis of the San Francisco 49ers as its first successful IPO. 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. Fantex has signed contracts with eleven athletes and has completed six IPOs worth a total of $25.8 million.
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.
Timeline Date Athlete Event Brand Acquired Value October 2013 Vernon Davis Signs Fantex brand contract."Fantex Moves Forward with Football Player IPO" 10% $4,200,000 February 2014 EJ Manuel Signs Fantex brand contract."EJ Manuel stock to be offered" 10% $5,200,000 April 2014 Vernon Davis Completes $4.2 million initial public offering"Vernon Davis stock hits $12 in debut" May 2014 Mohamed Sanu Signs Fantex brand contract."Company Sells Stock in Bengals Player" 10% $1,640,000 July 2014 EJ Manuel Completes $5.2 million initial public offering (IPO)."Fantex Completes Second Football Player IPO" September 2014 Alshon Jeffery Signs Fantex brand contract."Fantex Signs Chicago Bears Player for an IPO" 13% $8,400,000 November 2014 Mohamed Sanu Completes $1.6 million initial public offering (IPO)."Investors paid this much for Bengals' Sanu stock" February 2015 Michael Brockers Signs Fantex brand contract."Fantex, Inc. Enters Into Brand Contract With Rams Defensive Lineman Michael Brockers" 10% $3,600,000 March 2015 Alshon Jeffery Completes $8.4 million initial public offering (IPO)."Fantex Series Alshon Jeffery Convertible Tracking Stock Begins Trading on Fantex.com" March 2015 Jack Mewhort Signs Fantex brand Contract."Here's why Fantex, the athlete stock exchange, is working" 10% $2,700,000 March 2015 Kendall Wright Signs Fantex brand contract. May 2015 Michael Brockers Completes $3.6 million initial public offering (IPO)."Fantex Series Michael Brockers Convertible Tracking Stock Begins Trading at Fantex.com" July 2015 Jack Mewhort Completes $2.7 million initial public offering (IPO)."Fantex Series Jack Mewhort Convertible Tracking Stock Begins Trading at Fantex.com" September 2015 Andrew Heaney Signs Fantex brand contract. 10% $3,340,000 September 2015 Terrance Williams Signs Fantex brand contract."Fantex, Inc. Enters Brand Contracts With Terrance Williams and Ryan Shazier" 10% $3,060,000 September 2015 Ryan Shazier Signs Fantex brand contract. 10% $3,110,000April 2016Allen RobinsonSigns Fantex brand contract.12%$4,600,000April 2016Tyler DuffeySigns Fantex brand contract.10%$2,230,000April 2016Maikel FrancoSigns Fantex brand contract.10%$4,350,000April 2016Collin McHughSigns Fantex brand contract.10%$3,960,000April 2016Jonathan SchoopSigns Fantex brand contract.10%$4,910,000April 2016Yangervis SolarteSigns Fantex brand contract.11%$3,150,000April 2016Kelly KraftSigns Fantex brand contract.15%$2,280,000April 2016Scott LangleySigns Fantex brand contract.15%$3,060,000April 2016Jack MaguireSigns Fantex brand contract.11%$2,070,000April 2016Kyle ReifersSigns Fantex brand contract.15%$1,740,000
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