Arian Foster went undrafted in the draft and signed with the Texans as an undrafted free agent. The publishers of the Articles are not affiliated with the Company. We will have no further financial obligation to Arian Foster under the brand contract once this payment has been made. The contract party has no obligation to take any actions to generate brand income, and may choose not to do anything to generate brand income. We consider a brand to be a distillation of a complex set of associations people make with respect to an individual, including performance, appearance, history and personal story, products or services such individual is associated with, public statements or positions on matters of public concern, how an individual acts or the image such individual projects to the world. Shares of our Fantex Series Arian Foster are new securities; there are currently none issued and there is currently no established market.
Any such changes may adversely affect the ability of our contract parties to perform their obligations under brand contracts, or inhibit our ability to enter into new brand contracts with other contract parties. Beirne conceived of the Fantex concept more than a decade ago when working on a sports-related venture with John Elway, the former Denver Broncos quarterback. The company did say it expected to pay a dividend to holders of the Foster stock. To the extent FBS chooses to act as a market-maker, it may act as principal or agent in such transactions, including as agent for the counterparty when acting as principal or as agent for both counterparties, and may receive compensation in the form of discounts and commissions, including from both counterparties, when it acts as agent for both. However, we can provide no assurances that a California court may not rule differently in the future, or that a court of another jurisdiction might attempt to apply a different choice of law to our brand contracts. If a state denies our filing after the reservation period opens we will return any money from individuals within that state. For example, in the Cantor Futures Exchange received approval from the Commodities Futures Trading Commission to launch the Hollywood Stock Exchange as a contract market for the trading of box office futures; however, the Motion Picture Association of America successfully lobbied members of the U. As a result, we may be forced to revise our business model to attract additional brand contracts.
Arian Foster’s performance in the NFL directly affects, and a deterioration of his performance could adversely affect, the ABI under our brand contract with Arian Foster. Rather, investors in our Fantex Series Arian Foster fajtex be our common stockholders. He also has ongoing endorsement contracts valued at around , with companies like Under Armour UA.
The contract party may retire from such contract party’s primary occupation, such as an athlete in the NFL, at any time and for any reason, subject only to a requirement to repay us the amount of the purchase price we paid such contract party, plus certain expenses and fosteer of any amounts already paid to us, if the contract party retires within two years.
In the event that the number of shares represented by reservations during the initial offering period exceeds the number of shares the Company is seeies, Fantex, Inc. We may therefore pay a purchase price for ABI that is too high. If any of these risks occur it could have a material and adverse impact on our business, financial condition and serifs of operations.
Stock | FANTEX Stock Price Today | Markets Insider
Brian McCarthy, a spokesman for the N. These contracts may be terminated in the event of breach of contract by Arian Foster or if Arian Foster fails to play in the NFL, is charged with criminal behavior or engages in conduct that adversely reflects on the sponsor. French said Fantex Inc. However, the biggest challenge may be the one fought within the state and federal regulatory systems. As a result, our stockholders will have no recourse directly against the contract party, either fostsr the brand contract or under the securities laws.
As a result, our valuation of those assets incorporates significant inputs that are not observable. If Arian Foster is unable to play as a result of any injury, illness or a medical condition he may lose those portions of his foser payable on the achievement of performance based incentives, those portions of his contract not guaranteed against injury, illness or a medical condition and may be unable to enter into any future NFL player contracts.
Thus, future endorsements and other brand income opportunities may be difficult to attract and maintain, and they may not generate as much brand income as we expect or that they have historically. Our platform common stock is intended to track and reflect the economic performance of all of our tracking brands by having a small percentage of ABI from these tracking brands tantex to it.
Faantex in the format of the game and league in which Arian Foster plays could have a negative impact on his brand income and therefore, will impact the ABI we receive under the brand contract. For investors, the long-term outlook for a player will be difficult to handicap. Our management and board of directors will have complete discretion in determining the scope and execution of our brand promotion efforts, if any, with respect to our brands.
It is also important to note that Arian Foster was the first contract party with whom we entered into a brand contract. First, Arian Foster was an un-drafted free agent, and thus we believe his historical endorsement earnings in his first several seasons were significantly lower than his longer-term potential. Prior to this offering, we have been a wholly-owned subsidiary of Fantex Holdings, our parent. Payments under the NFL player contract are made in installments over the course of the applicable regular season period.
NFL star Arian Foster sells stock – in himself
In a similar manner, influential parties that perceive our business model to be a threat to their business or detrimental to fantwx sports may attempt to lobby leagues, team owners, players associations, endorsement partners and elected officials to adopt rules, policies, laws, regulations or legal interpretations that inhibit us from conducting our business. If agian is insufficient, the company may cancel the deal.
Heading into the year, there was concern over various injuries. We do not intend to apply for a listing of our Fantex Series Arian Foster or our platform common stock on fosteg securities exchange or for their inclusion in any established automated dealer quotation system. Forward-looking statements speak only as of the date on which they are made. Moreover, future endorsement partners may be less willing to enter into contracts with Arian Foster as a result of his entering into the brand contract with us in order to avoid public disclosure of their arrangements with Arian Foster.
NFL star Arian Foster sells stock – in himself | Reuters
In addition, Arian Foster played with a torn meniscus, or cartilage in his knee, during the NFL season, without publicly disclosing the injury until after the season when he underwent surgery to repair the injury. His reply was that transcripts of our interview, and all other media interviews, will be publicly filed with the SEC.
However, if our parent is unable to perform any of the services that fkster are required to perform under the management agreement, due to serirs difficulty or otherwise, then we may be forced to assume management and administrative tasks, and incur additional expenses, sooner than we anticipate. We will be at risk if for any reason we do not receive those future payments, or if they are less than we would need to be profitable or to offset our expenses.
We are an “emerging growth company,” as that term is used in the Jumpstart Our Business Startups Act ofand, as such, are subject to reduced public company reporting requirements. Foster is a crowd favorite and media darling who trumpets his passions for poetry and yoga. We can accept reservations with security on file, but cannot transact unless the state declares the security is effective as well.
We may not receive the cash amounts that we expect, or any at all, from our brand contract with Arian Foster or from any future brand contracts and we may never generate sufficient revenue to become profitable.
We have taken measures to protect our proprietary information and confidential information of the contract parties, but these measures may not be effective.
He declined to talk about which other entertainers or athletes the company might be working with. Substantially all of his current brand income is derived from his NFL player contract.
A market of star athletes calls to mind other unusual investments tied to entertainers. The initial public offering hinges on a deal requiring Fantex Holdings Inc. Any brand contracts that we enter into in the future with other contract parties will require us to make substantial upfront payments to acquire the ABI under such brand contracts.
Our principal assets are expected to be derived from our brand contracts with athletes, entertainers and other high-profile individuals.
The Texans may also terminate the player contract if Arian Foster fails to establish or maintain his excellent physical condition to the satisfaction of the Texans’ physician, or make the required full and complete disclosure and good faith responses to the Texans’ physician of any physical or mental condition known to him which might impair his performance under this contract and to respond fully and in good faith when questioned by the Texans’ physician about such condition.
To date, we have not generated any revenues or cash flow from any brand contract, and following completion of this offering, our brand contract with Arian Foster will represent our only source of revenue or cash flow.
Even if we achieve profitability in the future, we may not be able to sustain profitability in subsequent periods. Arian Foster is only contractually guaranteed to receive a portion of his NFL player contract. All such transactions with respect to these securities that are made pursuant to a prospectus after the effectiveness of the registration statement of which this prospectus is a part are being made solely pursuant to this prospectus, as it may be supplemented from time to time.