Maikel Franco, Jonathon Schoop, Collin McHugh, Yangervis Solarte, and Tyler Duffey just made moves that might just blow some of your minds.
I’m not talking about anything to do with their teams or their baseball skills. We’re talking business. A company called Fantex has just reached a deal with each of the above players to be apart of this new industry that I guess you could describe as the stock market crossed with professional athletes. You can now buy and sell securities in the future earnings of these players.
The company Fantex previously had deals with some NFL players, but this brings in a wave of some MLB guys. All the MLB guys involved in this deal are earning at or just above league minimum.
Fantex purchased rights to the following:
Maikel Franco – 10% of future earnings for $4.35 million
Jonathon Schoop – 10% of future earnings for $4.91 million
Collin McHugh – 10 % of future earnings for $3.96 million
Yangervis Solarte – 11% of future earnings for $3.15 million
Tyler Duffey – 10% of future earnings for $2.23 million
Andrew Heaney – 10% of future earnings for $3.34 million
They’re still unclear on how they will package the deal to be available to investors, but the deal included 10% of future earnings throughout their playing career including on field and off field earnings. They do have full approval of the MLBPA which says that players are free to deal with Fantex at their own risk.
This is super interesting to me. I’m interested to see if they give investors the option to buy stake in each individual athlete, or sport as a whole, or maybe the whole package. You’d buy shares in Andrew Heaney for whatever price Fantex sets, and then risk gains or losses based on his career earnings. It seems the players involved in this deal gain some sort of upfront security as well. This just solidifies the notion that these professional athletes are more businesses than they are humans.