On April 28,
The San Francisco 49ers tight end is set to partner with Fantex Brokerage Services, becoming the first professional athlete to sell stock in his own brand.
Davis’ brand, defined by Fantex as money earned from playing contracts, endorsements, appearances and post-career activities, will determine the success of the stock.
A sixth-overall pick in 2006, Davis signed a five-year contract extension in 2010. During his eight NFL seasons, Davis has been named to the Pro Bowl twice.
Fantex is currently holding Davis’ Initial Public Offering (IPO), but that window will close at 2 p.m. PT on Thursday. That window could be extended in order to sell more shares.
For the IPO, Fantex is offering 421,000 shares at $10 per share.
Fantex CEO Buck French said his company is willing to purchase any unsold stock if needed.
“If there are any shares left outstanding, then Fantex Holdings will take over whatever the delta is,” French told Forbes.com. “We are happy to put our money where our mouth is.”
Fantex must still get approval from the Securities and Exchange Commission (SEC) in order to officially be able to sell stock in Davis or any other athlete.
With no prior history of investment in athletes, Fantex warns that stock in Vernon Davis carries inherent risks.
If the Davis IPO goes according to plan, Fantex’s next offering will be with Buffalo Bills quarterback E.J. Manuel.