Media Coverage
Source: Daily Journal
Media Coverage
11.01.13
Fantex Holdings is preparing an initial public offering that many in the legal community say will be one of the most novel offerings they’ve seen in a long time. The company plans to create its own stock exchange to give the public a chance to trade shares tied to the future “brand value” of prominent professional athletes and other celebrities.
James Masetti, a partner in Pillsbury’s Silicon Valley corporate and securities practice, commented, “What they're doing is creating a stock and creating an exchange that will be self-contained. It's almost like having your own little casino because the value of what you're trading is set on that exchange.”
According to Masetti, this brings up significant questions about the stock’s potential liquidity. “It's one thing to say we have Arian Foster stock traded on the Nasdaq. What they're saying is, ‘We're selling it and it'll trade on an exchange that doesn't even exist yet.’”