Fantex IPO tied to 49er star gains 10 pct in debut
SAN FRANCISCO (AP) At least a few investors believe San Francisco 49er tight end Vernon Davis will have a lucrative career.
An unusual stock tied to Davis’ earning potential gained $1, hitting $11 in its trading debut Monday. Only 101 shares had traded as of Monday afternoon.
The 10 percent gain represents a vote of confidence in Davis, an eight-year veteran of the National Football League.
This marks the first time a stock has been linked to the career of a professional athlete.
The value of the tracking stock offered by Fantex Inc. will depend on Davis’ ability to sign a big contract after his current deal with the 49ers expires in 2015.
Fantex paid the 30-year-old Davis $4 million in exchange for 10 percent of his income from football and endorsements.