Outside Topic Investors buying share of athletes future income - Printable Version
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Investors buying share of athletes future income - TreesAndBirds - 08-15-2022
I had heard about the concept of investors paying upfront money to young/unproven athletes in return for a share of future earnings, but hadnt really focused on it. It appears that one of those groups had invested in San Diego’s Tatis when he was playing Single A ball. They are expected to make out very well as a result of his recent contract…their share guesstimated at 8%.
In theory I like the concept of letting athletes diversify their risk some, but the devil is probably in the details.
https://www.marketwatch.com/story/fernando-tatis-jr-s-340-million-contract-will-be-shared-with-a-firm-that-invested-in-him-as-a-teenager-11613679240?mod=MW_article_top_stories
RE: Investors buying share of athletes future income - BostonCard - 08-15-2022
There’s a Planet Money of minor leaguers pooling their earnings if they make it to the majors…
https://www.npr.org/transcripts/773493342
That seems healthier. The way things are going, though, “investors” will start investing in collegiate athletes.
BC
RE: Investors buying share of athletes future income - SamuelMcF - 08-16-2022
(08-15-2022, 08:38 PM)BostonCard Wrote: There’s a Planet Money of minor leaguers pooling their earnings if they make it to the majors…
https://www.npr.org/transcripts/773493342
That seems healthier. The way things are going, though, “investors” will start investing in collegiate athletes.
BC
Pando is awesome, and expanding its pool offerings to other professions (e.g. entrepreneurs, who are also "boom or bust") with different contribution thresholds and percentages. I'm in one.
RE: Investors buying share of athletes future income - Mick - 08-16-2022
(08-15-2022, 08:38 PM)BostonCard Wrote: There’s a Planet Money of minor leaguers pooling their earnings if they make it to the majors…
https://www.npr.org/transcripts/773493342
That seems healthier. The way things are going, though, “investors” will start investing in collegiate athletes.
BC
Interesting concept for younger players. I seem to recall that Vernon Davis tried to do that when he was midway through his pro football career. I think he had seven seasons left after he tried to sell shares in his brand, making just over $27 million after 2013. The deal was he'd exchange 10% of his brand for $4 million, so assuming negligible non-NFL compensation, investors would have lost money on the deal.
Vernon Davis is selling stock in himself - Niners Nation
RE: Investors buying share of athletes future income - dabigv13 - 08-16-2022
Even non athlete students have this option at some colleges and "coding schools" with income share agreements, but seems to be already on the wane.
Seems like a lot of pitfalls and potential for scams.
https://www.wired.com/story/income-share-agreements-hechinger-report/
RE: Investors buying share of athletes future income - BostonCard - 08-16-2022
Yeah, this has a high risk for winding up a scam. I’m waiting for someone to claim that they will have an NFT tied to their earnings on a blockchain or some such gibberish.
BC
RE: Investors buying share of athletes future income - cctop - 08-16-2022
(08-16-2022, 09:35 AM)SamuelMcF Wrote:(08-15-2022, 08:38 PM)BostonCard Wrote: There’s a Planet Money of minor leaguers pooling their earnings if they make it to the majors…
https://www.npr.org/transcripts/773493342
Pando is awesome, and expanding its pool offerings to other professions (e.g. entrepreneurs, who are also "boom or bust") with different contribution thresholds and percentages. I'm in one.
Planet Money also did a piece on Purdue University testing this out, reducing tuition in exchange for a percentage of future earnings:
https://www.npr.org/2022/08/05/1116008536/a-new-way-to-pay-for-college-update
RE: Investors buying share of athletes future income - CardinalSagehen - 08-17-2022
For better or worse, a version of this has already existed for many years. Investors have been buying shares (or "annuities") paid out of students' future income, specifically for those not on athletic scholarships.
It's called student loans.