Vernon Davis, Fantex Founder Discuss Tying Stock To Brand Earnings
49ers TE Vernon Davis and Fantex co-Founder & CEO Buck French appeared on CNBC's "Squawk on the Street" this morning to discuss the company's practice of issuing stock tied to an athlete's future earnings. Davis said, "It's all about developing your brand, and with Fantex they're a brand-building entity." Davis noted Fantex will receive 10% of his "future brand income," and it is "just how can I use leverage and continue to build my brand." French said if Davis were to get injured, he "would have to disclose that to us and we would disclose it to investors because technically, people are investors in Fantex, not directly in Vernon Davis. His obligation is contractually to us" (CNBC, 6/4).