Athlete Stock IPO Could Draw Regulators Along with Fans
Charlotte partner Chad Warpula was quoted in a December 2 Law360 article about Fantex, a San Francisco startup that offers stock in professional athletes, planning a $29.5 million IPO on NASDAQ for a tracking stock that’s tied to the income of nine NFL players and one MLB pitcher. The security is being touted as the “first-ever bundled unit of athlete tracking stock” and will be sold between $12.50 and $14.50 apiece up to 2.18 million shares.
“It is another way for fans to take an interest in their favorite players, but what they need to realize is that they are investing in Fantex, which has a contractual right to receive money from that player and the investor has no right to material information that could impact their investment,” Chad said.