Arian Foster is a 27-year-old running back for NFL team the Houston Texans. Last year, he signed a $40 million three-year contract with the franchise.
But thats not enough. A company called Fantex Inc has filed documents with the SEC ahead of an IPO of Foster or, more accurately, his future earnings.
Fantex will sell just over 1 million shares in Foster at $10 a share. For that, investors will get a 20% share of Fosters future career earnings.
For an injury-prone player in a sport where career-threatening injuries can happen at any time, that seems one hell of a risk.
But it made us think: what if bankers were to IPO their own future careers? After all, they spend a lot of time and effort, and earn a lot of money, persuading companies to do the same. Is it time for bank CEOs to put their IPO money where their mouth is?
A quick look at the global ECM league tables sees Goldman Sachs sitting pretty at the top. Last year, its chief, Lloyd Blankfein, earned a package of more than $20 million. What would he be worth in an IPO of his future earnings?
Clearly earnings for all big bank chiefs are under threat. Goldmans Q3 earnings were hit by declining FICC revenues. And Blankfein has been in the top job since 2006.
Then again, Goldman is arguably the best investment bank out there. And Blankfein shows no sign of leaving Mike Evans is the latest in a long line of potential successors to quit the firm. We think hed be a good investment.