Fantex Marries Sports and Investing
If the team continues to struggle, then it is possible that Foster will have more carries.
But that points to another risk.
One estimate puts the average NFL career at only 3.2 years because of injury and the wear and tear that athletes suffer because of hits. Obviously, running backs such as Foster receive a lot of hits. Player contracts are not guaranteed in the NFL. A player might sign a long-term, lucrative contract but get cut at any time.
Other NFL players may follow Foster's lead, because Fantex allows the players to transfer a significant portion of their career and contract risk to a pool of investors.Fantex will also have immediate credibility with NFL players because Hall of Fame quarterback and Denver Bronco executive John Elway is on Fantex's board of directors. Using Fantex to invest in a player seems to me more like buying a call option on that player than buying a share in him. And you don't know when that option will expire. In that sense, investors might want to consider this more of a hobby or diversion in which to put some "play money" rather than a serious part of one's investment portfolio. At the time of publication, Nusbaum had no positions in securities mentioned. Follow @randomroger This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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