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Want to buy stock in Andrew Heaney? Now you can.


jsnpritchett

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http://www.foxsports.com/mlb/story/los-angeles-angels-andrew-heaney-first-in-mlb-to-sell-stock-in-himself-091015

 

 

"Want to buy stock linked to the brand of Angels rookie left-hander Andrew Heaney? Fans will soon get that chance.

Heaney, 24, has become the first baseball player to enter into a brand contract with Fantex, the company announced on Thursday.

Under the terms of the deal, Heaney will receive $3.34 million in exchange for 10 percent of all future earnings related to his brand, including player contracts, corporate endorsements and appearance fees."

 

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`

Wow. It's actually true  :o.

 

I thought this was one of those bullshit clickbait threads (e.g. "Victor Rojas and Moreno S/B Banned" or "Angels trade Scioscia to Cubs") 

referring to some unrelated company or business owner named Heaney. 

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Is it a bad idea?  While I'm high on Heaney.  The $3.34 million means he will only be and idoit if he makes more than $33.4 million over his lifetime.  Even if he makes $60 million over a career, he would only lose $2.66 million.  $100 million, he would only lose $6.66 million.  

 

Chances are he will make the over.  But look at Shoemaker last year and you would have thought the same thing.

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Is it a bad idea? While I'm high on Heaney. The $3.34 million means he will only be and idoit if he makes more than $33.4 million over his lifetime. Even if he makes $60 million over a career, he would only lose $2.66 million. $100 million, he would only lose $6.66 million.

Chances are he will make the over. But look at Shoemaker last year and you would have thought the same thing.

The 10% comes from his brand: endorsements, memorabilia, gear, etc. Even after he retires, he'll still be obligated to give 10% of his earnings. Heaney is a complete moron for agreeing to this. Edited by failos
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Is it a bad idea?  While I'm high on Heaney.  The $3.34 million means he will only be and idoit if he makes more than $33.4 million over his lifetime.  Even if he makes $60 million over a career, he would only lose $2.66 million.  $100 million, he would only lose $6.66 million.  

 

Chances are he will make the over.  But look at Shoemaker last year and you would have thought the same thing.

 

The difference between having ~$0 and $3.4M makes a hell of a lot bigger difference for your lifestyle than the difference between having $100M and $110M. 

 

I actually see this deal as a very sensible form of insurance for Heaney should he ever get injured and not be able to play at a high level. 

Edited by ScottLux
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Bad idea man, bad idea.

 

I was referring to the whole concept of owning a player.  I know the fine print says they screen the stockholders, but I don't like the idea of someone you don't know owning a piece of you.  It's too easy to connect the dots to a person with a scrupulous background (maybe gambler type).  Lots of times when people invest in you they take what they think is more than just a paper ownership, they think they own you and sometimes want to help in ways that aren't legal, or within the rules of the game.  Sometimes they get pissed when they don't get a return and look for retribution legally (a shareholder suit of sorts) or by other means.  From a monetary standpoint, I understand it's a way for Heaney to buy insurance in himself.  Anyway, that's what I was referring to when I said I don't like the idea.

Edited by tomsred
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I find this fascinating. I'm not a gambler but I think I'd do well if I could buy shares.

 

You know you could stick to the stock market, and get a whole lot more information on what you are actually investing in by reviewing SEC filings and analyst reports, etc..  A pitcher is not required to disclose personal medical information (because it's private by law), and that might have a really big impact on your return as an investor.

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Is it a bad idea?  While I'm high on Heaney.  The $3.34 million means he will only be and idoit if he makes more than $33.4 million over his lifetime.  Even if he makes $60 million over a career, he would only lose $2.66 million.  $100 million, he would only lose $6.66 million.  

 

Chances are he will make the over.  But look at Shoemaker last year and you would have thought the same thing.

 

the math is more complex than that.

remember he takes the $3.34m now and can start investing it.

you can turn that into a decent amount of coin over time if you invest it right.

over 10 years, 8% return, you're looking at $7.2m.

over 20 years you're looking at $15.6m.

compound interest is a beautiful thing.

and that's on top of whatever he makes from baseball (minus 10%).

 

would be interesting to run the numbers, comparing that to average return of total earnings over said time of starting pitcher of his caliber (assuming he also invests what he gets from earnings sans cost of living, etc)

anyways, who knows if it works out but the math isn't super black and white.

Edited by mrwicked
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I think I would lean towards this being a good idea for a player. (Granted, this is the first I am hearing about.) I guess to really analyze it you would have to see the number of young prospects that make over 33 million in endorsements. Then that number would have to be higher than that to account for the present value of future dollars (a dollar today is worth more than a dollar 10 years from now.) Then there is the consideration that this is an insurance policy against either injury, or just not being able to excel at the Major League level. The final piece would be what others have mentioned, if he is making enough money to make this a bad deal, it won't have a huge financial impact on his life.

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Smart move actually. Pitchers are continually one pitch, one weird landing spot, one unlucky line drive come backer from having their career and future earning being put seriously in danger. With Heaney inking this deal, it guarantees his assets are well taken care of for the rest of his life.

And if by chance he survives and pitches a long time, instead of having 100 million in his bank account he'd only have 90. Not a big loss.

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So now the question is, would you buy in?

 

Not sure how many shares they will put on the market, or what a good estimate on that is, but lets say they go with 1 million shares. Each share represents 1 / 10,000,000 of his future earnings, or one dollar out of every $10 million he earns in his career.

 

At what price would you buy in? Obviously this company is counting on the price rising above $3.34 per share in this scenario. As of right now, every year he pitches in the major leagues would return 5 cents per share, with that value roughly tripling each year past the first three.

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I was referring to the whole concept of owning a player.  I know the fine print says they screen the stockholders, but I don't like the idea of someone you don't know owning a piece of you.  It's too easy to connect the dots to a person with a scrupulous background (maybe gambler type).  Lots of times when people invest in you they take what they think is more than just a paper ownership, they think they own you and sometimes want to help in ways that aren't legal, or within the rules of the game.  Sometimes they get pissed when they don't get a return and look for retribution legally (a shareholder suit of sorts) or by other means.  From a monetary standpoint, I understand it's a way for Heaney to buy insurance in himself.  Anyway, that's what I was referring to when I said I don't like the idea.

Could you imagine what tdawg would try to do if he bought stock for Mike Trout.

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the math is more complex than that.

remember he takes the $3.34m now and can start investing it.

you can turn that into a decent amount of coin over time if you invest it right.

over 10 years, 8% return, you're looking at $7.2m.

over 20 years you're looking at $15.6m.

compound interest is a beautiful thing.

and that's on top of whatever he makes from baseball (minus 10%).

 

would be interesting to run the numbers, comparing that to average return of total earnings over said time of starting pitcher of his caliber (assuming he also invests what he gets from earnings sans cost of living, etc)

anyways, who knows if it works out but the math isn't super black and white.

 

Sign me up for that 8% return. 

 

If it were only that easy.

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http://www.foxsports.com/mlb/story/los-angeles-angels-andrew-heaney-first-in-mlb-to-sell-stock-in-himself-091015

"Want to buy stock linked to the brand of Angels rookie left-hander Andrew Heaney? Fans will soon get that chance.

Heaney, 24, has become the first baseball player to enter into a brand contract with Fantex, the company announced on Thursday.

Under the terms of the deal, Heaney will receive $3.34 million in exchange for 10 percent of all future earnings related to his brand, including player contracts, corporate endorsements and appearance fees."

So if he gets traded to the Yankees or Dodgers does his stock rise? This might be a trend for future FA's to choose big market or big branded teams.

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So if he gets traded to the Yankees or Dodgers does his stock rise? This might be a trend for future FA's to choose big market or big branded teams.

 

That is actually an interesting thought now.  Teams will now know, with Heaney, he will now be a top price hired hand now.  Doesn't matter the team.  Top dollar is where he will go.  Because the "investors" will want top dollar.  

 

So now, instead of knowing that a Boras client will probably be looking for top dollar.  Now you will have all these "investors" looking for top dollar.  

 

Then again.  What would happen if say all the "investors" were Wall Street types and Yankee fans.  As an "investor" would you steer him towards signing for the Yankees.  

 

Or does Heaney have all say in regards to how much and where he plays?

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Sign me up for that 8% return.

If it were only that easy.

The Mets excepted to save money when they agreed to pay Bobby Bonilla 8% for many years as they were getting a steady 10% from Madoff

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  • 6 months later...

I think it is genius, it is similar to having an IPO on his own brand.  It definitely provides a Loss-Of-Value insurance policy to the players. As for income MLB allows its players to put unlimited amount into their own retirement accounts though income is still taxed on account for anything over $12,500.00 this retirement account would be untouchable when he starts collecting his pension. it also includes only net income and not gross earnings, so lets not go crazy he will run it like a corporation and possibly show a net loss.  Jet fuel can get expensive, LOL.   

 

BTW - agents have been doing this same thing for years, they give money to athletes for a percentage of future earnings. But the Agents get paid on gross not net income, so it is actually more lucrative. 

 

SO this is exciting for me, because I could buy a tracking share of Heaney for about $12.50 to $14.50 a share, if he becomes a super star his value of potential earning causes a rise in his stock. If he breaks his arm I take a loss of my initial investment only.  Also being that it is a Tracking Stock only it really is not about investing in an individual player it is simply a fantex, inc stock holding that you are investing in with the earnings potential of Heaney as its source income.  Even at $12.50 a share it is not a great buy but since the sporting world likes to place bets, I am sure I would benefit on an investment both in fantex and the individual's tracking stock.  

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