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SBD/October 17, 2013/Finance
Fantex Files For IPO That Will See It Sell Stock In Arian Foster's Future Brand Income
Published October 17, 2013
IPO COMING IN NEAR FUTURE: In N.Y., Lattman & Eder report Fantex will market the Foster IPO "in the coming weeks, offering 1.06 million shares at $10 a share." No single person can own more than 1%, "ensuring that it's available to a number of investors." If the demand is "less than the number of shares being offered, Fantex may cancel the deal." However, if it is successful, Foster's tracking stock "will then trade exclusively on an exchange operated by Fantex." The stock likely will increase in value if Foster "raises his earnings potential with standout on-the-field performance or increased corporate sponsorships." Fantex will make a 1% commission "from both the buyer and seller" on stock trades. It is unknown what the NFL or other pro leagues "will think of Fantex." French said that while the company "had discussed its business model with the NFL players' union, it has not spoken with league officials." He added that Fantex believes the NFL "has no say over whether a player can sell a stake in his brand to outside investors." Lattman & Eder note it is not known if there are "other athletes on the sidelines awaiting their turn at an IPO" (NYTIMES.com, 10/17).