Friday, February 01, 2008

The Sports Stock Market

My Diamondback column today proposes a merger of the financial markets and sports:
I think many athletes, especially those in junior leagues or fresh out of college, could hedge the risk on their contracts by selling shares entitling owners to a certain percentage of their future earnings.

Take our star junior linebacker, Erin Henderson, for example. Many experts think he could be a second-round pick in the 2008 NFL Draft. After leaving the Terps, Henderson could decide he wants to secure some money up front, and thus he could sell shares of himself equivalent to 2 percent of his career NFL earnings. His ticker symbol: ERIN … or better yet, STUD.

Henderson would get money right away and, assuming he gets signed by a team, additionally earn 98 percent of a still-hefty paycheck. Both player and investors have the potential to gain. For all you fantasy football gods out there who love to brag about your ability at finding the next best thing before anyone else, getting in on Erin early would be a terrific opportunity to make some money.

Read the rest here.

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