Most pro football fans already find themselves personally invested in the fortunes of their teams and favorite players. Now they can get a return on that investment.
Fantex, a brokerage based in San Francisco, offered 421,000 shares of San Francisco 49ers' star tight end Vernon Davis to the public Monday, making him the first-ever publicly traded athlete. Davis' "initial public offering" was priced at $10 per share, and at mid-afternoon was up 10% on volume of 101 shares.
In exchange for $4 million upfront, Davis agreed to sign over 10 percent of his future earnings to Fantex. As those earnings grow from contracts, endorsements and other "brand" income sources, investors receive dividends, the brokerage's co-founder and CEO, Buck French, told CNBC on Monday.
Investors also receive a piece of Davis' post-football career, French added.
"So should he become a broadcaster or a talk show host, that cash flow is all encapsulated within the security and linked to the security," French said on "Squawk on the Street." "We absolutely intend to pay out dividends as we collect the cash flow from Vernon Davis' brand."