Schoop locks in early pay-day for future earnings

[Ohfan67]

Some of you guys are misjudging how the company is going to make their money. The company doesn't really need to recoup 4.9 million from his salary to make money, they need the selling price of his "stock" and the amount recoup to be greater than 4.9 million. They are banking that most people purchase high priced "stocks" in the players and then the "stocks" end up being worth way less than the selling price. They don't need Schoop to actually earn 50+ million to make money.

[weams]

I think a seniors league for players over 30 would have some legs.

[Ohfan67]

p.s. they can also invest money they get now from stock holders to make cash. pretty interesting idea (from the companies perspective, I think you would be better off betting on beetle races or a random number generator than investing in the future salaries of Schoop et al.)

[VTech]

Interesting idea. I did not see on the Fantex website what constitute's "player earnings". Is this pre-tax, pre-union dues, pre-agent fees, etc.? Seems like if the earnings occur after agent fees have been deducted, Fantex would have an interest in performing agent services. The Vernon Davis OTC listing paid a dividend for his Levi's sponsorship, so it appears any advertising dollars are included in his earnings.

It is his brand that constitutes earnings. So if Schoop does an autograph signing when he is 70 years old and gets paid for it, he has to give 10% of it to Fantex. Same if he goes into broadcasting or something like that. Fantex doesn't owe any obligation to give out dividends either but it seems they did for Vernon Davis

[VTech]

p.s. they can also invest money they get now from stock holders to make cash. pretty interesting idea (from the companies perspective, I think you would be better off betting on beetle races or a random number generator than investing in the future salaries of Schoop et al.)

Seems like this is investing in a small sole proprietorship where if the owner injuries them-self in any manner in the office, you're bound to lose a lot of your investment

[DrungoHazewood]

I think a seniors league for players over 30 would have some legs.

They had one in the late 80s and early 90s. Earl managed, Dan Boone threw knucklers, and tens of fans showed up.

[waroriole]

I wonder if we approached Schoop about an extension.

[Ohfan67]

Seems like this is investing in a small sole proprietorship where if the owner injuries them-self in any manner in the office, you're bound to lose a lot of your investment

Maybe they buy an insurance policy on the player? Fun stuff to think about.

[srock]

This is just great for a player like Schoop. Its like getting a 2nd signing bonus he can put into savings in case he gets hurt. 10% of future earnings is a pretty good deal when the changes he never makes any more money are pretty high (relative to an office worker for example).

[Frobby]

So, would you invest in the proposition that $4.91 mm is less than 10% of Schoop's future earnings? FWIW, Ian Kinsler will make at least $104 mm in his career, Dan Uggla has made $75 mm, Brandon Phillips will make at least $99 mm, and Howie Kendrick will make at least $58 mm. I'm leaving out guys like Cano, Utley and Pedroia who have made or will make more than that.

[Can_of_corn]

Makes me wonder if, since Schoop obviously had interest in immediate financial security, his representation approached the Orioles about a long term deal.

I would certainly have done that first before agreeing to a deal of this kind.

[Three Run Homer]

If I'm the Orioles, I don't want Schoop to share his future risk with outside investors. I want Schoop to have as much incentive to play well in the future as positive.

[Can_of_corn]

If I'm the Orioles, I don't want Schoop to share his future risk with outside investors. I want Schoop to have as much incentive to play well in the future as positive.

Than they should have given him a better alternative.

[Ohfan67]

So, would you invest in the proposition that $4.91 mm is less than 10% of Schoop's future earnings? FWIW, Ian Kinsler will make at least $104 mm in his career, Dan Uggla has made $75 mm, Brandon Phillips will make at least $99 mm, and Howie Kendrick will make at least $58 mm. I'm leaving out guys like Cano, Utley and Pedroia who have made or will make more than that.

I'm sure these guys calculated the probabilities of player Y making X dollars before they made the deal. I'm sure the probability they calculate for a player and the company's estimates of what they will make by over selling the "stock" basically sets their price for the 10% investment. Very fun stuff to think about, for sure. For someone like Schoop I think the probability would have to be pretty high (like there's a 90% or higher probability that Schoop will make that much money). If the player was flashier and super well known, then the company will probably make more money from selling over valued stock and could accept a lower probability.

[Ohfan67]

This company has just created a whole new sports "thing" for discussion boards, blogs, sports radio, etc.