It certainly was a unique idea: Startup company Fantex entered an agreement with Arian Foster, star running back for the Houston Texans, to get 20% of his career earnings in exchange for a $10 million upfront fee. The purpose: To launch an initial public offering of sorts in the running back, in which people could buy and sell Arian Foster stock.
The company started putting together the necessary papers for an IPO, but things didn’t go as planned. The deal had to be postponed after Foster suffered a back injury in his latest game. He’ll have to get surgery for a ruptured disc and sit out the rest of the season.
The timing couldn’t have been worse. And now it seems likely that the idea of an athlete-backed IPO may never be a reality. Fantex had also been planning an offering for Vernon Davis, a tight end for the San Francisco 49ers. However, Davis had to leave the game on Sunday because of a concussion, raising questions about the viability of an IPO. Read