Risky bet?

In my business management class, we discuss a topic of the day in the beginning of class everyday. Yesterday I was very intrigued by an idea that was explored. The discussion was about a new way to invest, not into a company, stock, or commodity, it considered an investment into an athlete. I am a long time sports fan and this was right up my alley. I thought this was an ingenious idea for the athlete and investor.

Arian Foster, a top 5 running back for the Houston Texans, will be the first professional athlete to sell a piece of himself to the public. Fantex Brokerage Services will be purchasing 20% or 10 million dollars of Arian Fosters stake in his future income. To learn more about the specifics of this idea click here. Fantex will be selling the 20% to any investors that are willing to put their money, faith, or love into an elite athlete like Arian Foster.

For investors, this purchase of Arian Foster, is like buying any stock. Everything is performance based, if Foster has a MVP like season, is a Super Bowl contender, and/or scores a huge contract in the offseason, the investors will receive dividends, and like any other stock the price would increase. But if Foster does not have a successful season, big accomplishments, gets injured, etc... the stock value would decrease and investors will lose money. There is high risk but also high reward with this proposition.

For Foster this is a smart decision, by selling 20% of himself, he lowers the risk of not making the money on his contract. However, the reward for him making money is still high. An idea like this could become predominant in the future, with other star athletes, actors big society names selling themselves as well. Do you think athletes should be allowed to sell apart of themselves? Would you invest?

"If you don't value your time, neither will others. 

Stop giving away your time and talents. 

Value what you know & start charing for it."

-Kim Garst