- Shanghai stocks gain after stimulus briefing as Asian markets rally
- Nearly 90, but opera legend Kabaivanska is still calling tune
- With inflation down, ECB eyes faster tempo of rate cuts
- Is life possible on a Jupiter moon? NASA goes to investigate
- Ex-Stasi officer faces verdict over 1974 Berlin border killing
- Role of government, poverty research tipped for economics Nobel
- In milestone, SpaceX 'catches' megarocket booster after test flight
- In a first, SpaceX 'catches' megarocket booster after test flight
- Bangladeshi Hindus shrug off attack worries to celebrate festival
- Ubisoft fears assassin's hit over falling sales
- Vietnam, China hold talks on calming South China Sea tensions
- SpaceX will try to 'catch' giant Starship rocket shortly before landing
- Japan's former empress Michiko discharged after surgery: reports
- Japan's former empress Michiko discharged after surgey: reports
- 'Little Gregory' murder haunts France 40 years on
- Tariffs, tax cuts, energy: What is in Trump's economic plan?
- Amazon wants to be everything to everyone
- Jewish school in Canada hit by gunfire for second time
- With medical report Harris seeks to play health card against Trump
- China-EU EV tariff talks in Brussels end with 'major differences': Beijing
- Buried Nazi past haunts Athens on liberation anniversary
- Harris to release medical report confirming fitness for presidency: campaign
- Nobel prize a timely reminder, Hiroshima locals say
- China offers $325 bn in fiscal stimulus for ailing economy
- Small Quebec company dominates one part of NHL hockey: jerseys
- Boeing to cut 10% of workforce as it sees big Q3 loss
- Want to film in Paris? No sexism allowed
- US, European markets rise as investors weigh rates, earnings
- In Colombia, children trade plastic waste for school supplies
- JPMorgan Chase profits top estimates, bank sees 'resilient' US economy
- Little progress at key meet ahead of COP29 climate summit
- 'Party atmosphere': Skygazers treated to another aurora show
- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Thunberg leads pro-Palestinian, climate protest in Milan
- Stock markets diverge before China weekend briefing
- EU questions shopping app Temu over illegal products risk
- Han Kang's books sell out in South Korea after Nobel win
- Shanghai markets sink ahead of briefing on mixed day for Asia
- Investors, analysts eye bigger China stimulus at Saturday briefing
- Musk unveils robotaxi, pledges it 'before 2027'
- At least 11 dead in Florida but Hurricane Milton not as bad as feared
- Asian markets mixed after Wall St drop, Shanghai dips before briefing
- Automaker Stellantis says CEO will retire in 2026
- Musk's promised robotaxi unveil delayed
- On US coast, wind power foes embrace 'Save the Whales' argument
- At least 10 dead in Florida after Hurricane Milton spawns tornadoes
- Internet Archive reels from 'catastrophic' cyberattack, data breach
- Wall Street stocks retreat from records on US inflation data
- Israel strikes central Beirut, killing 22
For small-time investors, bankrolling a young athlete can pay off
In February 2021, Dominican baseball superstar Fernando Tatis Jr signed a monster deal with the San Diego Padres -- $340 million over 14 years.
But up to $30 million of that total, according to US media estimates, will eventually go to Big League Advantage (BLA), which financed Tatis in the early stages of his career. The company and its investors stand to make at least 10 times their initial investment.
BLA is one of several start-ups offering individuals an opportunity to bankroll young athletes in exchange for a portion of their future earnings -- a new and perfectly legal market that has some sports agents wringing their hands.
Investing in young athletes is nothing new. In the early 2000s, hundreds of promising footballers ceded their rights to investment funds before the sport's world governing body FIFA banned the practice in 2015.
But now, these opportunities are increasingly available to the average investor, and not just a handful of rich elites with high-powered financial advisors -- thanks to new regulations that took effect in 2016.
"We started Finlete because we wanted to bridge the gap between athletes and their fans," explains Rob Connolly, the cofounder of the California-based platform, which has the backing of media-telecom giant Comcast.
Finlete is awaiting operations approval from the US Securities and Exchange Commission, in what would be a first for an investment firm open to all, no matter their wealth or earnings.
"Our goal is to have the share price at around $25," affording the investor a share of a blue-chip athlete's future income, says Connolly, noting he has several thousand people already on a wait list to buy in.
Shareholders would then be able to buy and sell on the platform.
- 'Predatory practice' -
Until now, this nascent investment industry has been largely linked to Major League Baseball, as its minor league system creates a market of thousands of young players who could eventually make it big.
But Swiss company Fantium has launched with a focus on tennis, and Commonwealth, which initially specialized in shares of racehorses, is expanding its listings to include up-and-coming golfers.
Those players receive $225,000 upfront to cover a three-year span, in exchange for 30 percent of their earnings over the same period -- a percentage that dwindles to 10 percent in year six, when the contract expires.
The money is placed in a joint account controlled by the player and Commonwealth, "so that we have full visibility into what the money is being spent on," explains Commonwealth cofounder and CEO Brian Doxtator.
At Commonwealth, Finlete and most of their competitors, the athlete is not required to reimburse any of the initial investment if they do not make it to the professional ranks.
For the time being, for athlete investments, Commonwealth only accepts accredited investors, who fulfill a minimum wealth and income threshold.
But eventually, Doxtator says, "we'll be able to sell shares in athletes for 100 bucks" as it does for racehorses. He also hopes to be able to offer resale of shares through the site.
One executive from a sports agency who asked not to be named, however, voiced skepticism about the benefits of such investments for the athletes.
"It's become really a predatory practice," the executive told AFP.
"It can be incredibly dangerous, because you can be giving away a significant financial upside long-term for sort of early short-term gains."
The executive said he hoped to see more government regulation of the sector, with "more guardrails and safeguards."
"But it's still so early," he said. "Only time will tell -- I don't think people fully understand the whole practice at large."
The SEC declined comment on the subject when contacted by AFP, as did the MLB Players Association.
Doxtator says he hopes to "completely eradicate predatory deals," citing the example of an athlete being given $50,000, and then owing 50 percent of his earnings to investors for 10 years.
"It's just crazy," he said.
Registering Commonwealth with the SEC will force transparency, especially on the financial parameters of the deals signed by the players, Doxtator says.
Connolly says he understands why some are hesitant to buy into his investment model, but adds that some athletes do not have the "support system" needed to make it to the big leagues without some extra help.
"A lot of these athletes have to quit their dream of being a professional athlete before they reach their full potential because of financial hardship," Connolly says.
"We believe we're getting more (of them) the ability to achieve their dreams."
A.Levy--CPN