Fantex gives Arien Foster 10 mil for 10% of lifetime income. Would u invest?

[Saturnmane]

I would invest in smtg like this but not with a football player and especially not a running back. Investing in any one athlete is extremely risky since injury could end their career and limit their future earnings. I would rather invest in baseball players or bball players and would only do it if they were to produce an etf with exposure to 10-15 athletes. Like one which is equally weighted and had Mike Trout, Puig, Bryce Harper, gerrit cole, jose hernandez, jurickson profar, avisail Garcia, manny machado, Wacha, Shelby miller and clayton Kershaw would be very enticing since only a few of these players would have to have long careers to make you money but they would probably want more than 10 million.

 

[JDM]

Doesn't make sense from the player's perspective unless they have no intention of making you your money back.

 

[Saturnmane]

Why don't it make sense? They get 10 million upfront and have to give back 10% of their checks for life. I am sure their are stipulations in the contract that protect the investor like if the player retires after they get paid if that's what your talking about.

 

[Saturnmane]

If this works well i think eventually anyone can get money up front and that will eventually replace student loans. Say someone has a 3.5 grade point average but they cannot afford college tuition, they can get like $200,000 and give in return 10% of future earnings. The government would probably regulate it into the ground (like the Health insurance market) since they have a huge portion of the student loan market and don't want to relinquish their monopoly on people being dependent on them.

 

[cdumler7]

Companies already invest in different graduating students with certain levels of student loans paid off if they promise to stay at a certain job for a certain level of time. Companies are figuring out that they have to invest like that to attract the best workers otherwise they end up picking from the bottom of the barrel.

Now to this it is a pretty risky investment but one I could see being attractive to a young star in the league. You have these guys entering the league some of them when they are 21 and somebody comes offering them $10 million up front in money would be hard for them to turn down. Some of these kids would be stupid enough to fall for it. If I was the athlete though I would say no. Most of these companies have figured out from past history how much these kids are going to make over a lifetime if they are a star and it obviously to them comes out to a pretty substantial amount in their favor otherwise they wouldn't take the chance.