How's The Publicly-Traded Athlete Business Performing?

In the 18 months since Fantex Holdings announced its first publicly-traded athlete “tracking stock,” a way for sports fans to invest in NFL tight end Vernon Davis, Fantex has added five more athletes to its list of tracking stocks.

Fantex selects young athletes and signs them to contracts that guarantee them a lump sum up-front in exchange for a percentage of their future brand income. Investors can then buy shares of athlete tracking stocks that theoretically rise and fall based on the success or failure of the athlete.

Fantex recently filed its 2015 annual report, which provided investors updates on its publicly-traded athlete tracking stocks. According to the report, the company’s six athlete brands have generated a combined $25 million in revenue since the company’s inception. That amounts to $2.3 million in total brand income for Fantex.

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The company still has some high expectations for its six athlete partners. Fantex is projecting it will earn $255 million in gross brand income throughout the duration of its current contracts.

Back in November, Fantex filed an S-1 form with the SEC for approval of a 10-athlete security to be traded on the NASDAQ exchange.

“By bundling multiple trackng stocks into a single NASDAQ-listed security, we believe Fantex is providing the next evolution for those looking to invest in the business of professional sports,” CEO Buck French says.

Disclosure: the author holds no position in the stocks mentioned.