Twins pitcher Duffey to sell 10 percent of future earnings to Fantex
SAN FRANCISCO -- Minnesota Twins pitcher Tyler Duffey has agreed to sell 10 percent of his future earnings for $2.23 million to a company called Fantex, which plans to sell securities to investors.
Baltimore second Jonathan Schoop struck a deal to sell 10 percent of his future earnings for $4.91 million and Houston pitcher Collin McHugh struck an agreement to sell 10 percent for $3.96 million, the company said Wednesday. Fantex said the deals are contingent on the company obtaining financing to make the payments and include earnings from defined "future on- and off-field cash flows."
In addition, the company reached agreements with San Diego infielder Yangervis Solarte (11 percent for $3.15 million) and Philadelphia third baseman Maikel Franco (10 percent for $4.35 million).
Last September, Fantex agreed to pay Los Angeles Angels pitcher Andrew Heaney $3.34 million for 10 percent.
All the baseball players who reached agreements are making just above the major league minimum of $507,500. McHugh and Schoop likely will be eligible for salary arbitration for the first time next winter, Franco and Heaney in 2018 and Duffy in 2019.
In its announcement Wednesday, Fantex also announced a deal with Jacksonville wide receiver Allen Robinson (12 percent for $4.6 million) and agreements with four golfers: Kelly Kraft (15 percent for $2.28 million), Scott Langley (15 percent for $3.06 million), Jack Maguire (11 percent for $2.07 million) and Kyle Reifers (15 percent for $1.74 million).
It is unclear what securities involving these athletes Fantex will propose to sell to investors. The company said it has withdrawn a November filing it made with the Securities and Exchange Commission proposing to have an initial public offering of Fantex Sports Portfolio 1 Units that would have been tied to the earnings of 10 players in two sports.
"In light of our most recent signings, we are working with our advisers on the most appropriate way to potentially package and offer our unique asset class to investors," Fantex chief executive officer Buck French said in a statement.
Fantex has launched tracking stocks for several NFL players, including Buffalo quarterback EJ Manuel, Chicago wide receiver Alshon Jeffery, Indianapolis guard Jack Mewhort and Washington tight end Vernon Davis.
