Fantex IPO tied to 49er star gains 20 pct in debut

Print
Email
|

Associated Press

Posted on April 28, 2014 at 1:03 PM

Updated Monday, Apr 28 at 2:02 PM

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.

Print
Email
|