Los Angeles Angels pitcher Andrew Heaney wants you to buy into his performance, literally.
The rookie has become the first player in Major League Baseball history to enter a brand contract with Fantex, which means you can invest in Heaney on the stock market. Here’s more details from Ken Rosenthal of Fox Sports.
Under the terms of the deal, Heaney will receive $3.34 million in exchange for 10 percent of all future earnings related to his brand, including player contracts, corporate endorsements and appearance fees.
The agreement is contingent on Fantex obtaining the financing necessary to pay the purchase price. The shares are not yet up for sale, and Heaney, his agents and Fantex officials cannot yet comment.
Both Major League Baseball and the players union consented to Heaney’s deal, which could be the first of several involving major leaguers.
As Rosenthal notes, for investors to make any money on the deal, he presumes Heaney would have to have a career earnings of more than 10x the invested amount, which is $33.4 million. Considering Heaney’s a good young pitcher, and factoring in the rising contracts given to pitchers, it’s a pretty good bet that he’ll reach that incentive, should he stay healthy.
CLEVELAND, OH – AUGUST 28: Starting pitcher Andrew Heaney #28 of the Los Angeles Angels of Anaheim pitches during the first inning against the Cleveland Indians at Progressive Field on August 26, 2015 in Cleveland, Ohio. (Photo by Jason Miller/Getty Images)
As Rosenthal points out, athletes from other sports have signed up with Fantex, as this type of branding is slowly becoming more common. San Fransisco 49ers tight end Vernon Davis, Chicago Bears wide receiver Alshon Jeffery and Buffalo Bills quarterback E.J. Manuel have all signed similar deals to Heaney’s.
The MLB players union may not be entirely happy with Heaney giving up a decent portion of his future deals, but that it could benefit them since he’s less inclined to sign a team-friendly deal since he’s got investors who would be pissed if he took less money than he could have earned.
The union also had reservations, including Heaney’s giving up a sizable percentage of his future earnings and risking disclosure on a broad number of issues, including injuries and potential discipline, sources said.
The deal, however, could benefit the union in other ways. Heaney already has received a $2.6 million signing bonus as the No. 9 overall pick in the 2012 draft. Now, with nearly $6 million in earnings, he likely will be less inclined to sign a below-market extension.
While Heaney was certainly a branded commodity before, he takes that to a new level with this deal. Fans who’ve invested in him may not cheer for his success because they want the Angels to succeed, but because they want to line their own pockets. It could change how fandom works.
If Heaney gets hurt does that mean the stock market crashed?
We’ll see if more players follow suit.
