Schoop locks in early pay-day for future earnings

[Can_of_corn]

2 hours ago, OrioleDog said:

I admit if I was 29 and had $20M, "future income" would probably not be much of a priority - but this is more wondering if he becomes Netherlands Vin Scully the next 50 years or something else meaningfully lucrative, whether Fantex would continue to inch back.   

I imagine Fantex would also "encourage" him to look to Asia, etc once even Spring Training invites dry up here, but guessing they have no more authority there than I do to get Lindor on to the '22 team.

I imagine Schoop isn't accepting calls from Fantex.

[Frobby]

Schoop signed a $4.5 mm deal with the Tigers today, bringing his career earnings to $26.5 mm if the whole season gets played.   Still $22.5 mm short of earning enough for Fantex to get back its investment, without interest.   

[Can_of_corn]

1 minute ago, Frobby said:

Schoop signed a $4.5 mm deal with the Tigers today, bringing his career earnings to $26.5 mm if the whole season gets played.   Still $22.5 mm short of earning enough for Fantex to get back its investment, without interest.   

Fantex sold shares of those contracts to other investors right?  So they might be in the clear with others holding the bag.

[Frobby]

1 minute ago, Can_of_corn said:

Fantex sold shares of those contracts to other investors right?  So they might be in the clear with others holding the bag.

Yes.   Was really just using shorthand for Fantex investors.   

[Can_of_corn]

Just now, Frobby said:

Yes.   Was really just using shorthand for Fantex investors.   

It was an interesting idea but I can't see anyone moving back into the space after these results.

[Frobby]

Assuming Schoop’s career is over now (he was DFA in July), the Fantex deal ended up a mild loser for Fantex and its investors.   They paid him $4.9 mm for 10% of his earnings from 2016 onward.  He ended up earning about $41.75 mm, so investors got back about $725 k less than what Schoop was paid by Fantex.  It might have been a little closer, but the pandemic cost Schoop about $3.9 mm and investors got $390 k less than if that season had been played in full.   

The investors also were due 10% of any endorsement deals, but I can’t imagine Schoop earned anything significant there.   
 

Edited November 3, 2023 by Frobby

[Can_of_corn]

1 minute ago, Frobby said:

Assuming Schoop’s career is over now (he was DFA in July), the Fantex deal ended up a mild loser for Fantex and its investors.   They paid him $4.9 mm for 10% of his earnings from 2016 onward.  He ended up earning about $41.75 mm, so investors got back about $725 k less than what Schoop was paid by Fantex.  It might have been a little closer, but the pandemic cost Schoop about $3.9 mm and investors got $390 k less than if that season had been played in full.   

The investors also were due 10% of any endorsement deals, but I can’t imagine Schoop earned anything significant there.   
 

I wonder if the money players get as part of the baseball card deals and such are counted as endorsements?

 

[Frobby]

Of the six reported Fantex deals, only one is in the black.  

Andrew Heaney was paid $3.34 mm and has earned $36.8 mm since then, and has a $13 mm player option for next year.  He’s already in the black and will pay off significantly more than he received   

Colin McHugh was paid $3.96 mm and has earned $24.3 mm to date, with a $6 mm team option ($1 mm buyout) for next year.  He’s still in the red but there’s at least a chance he could move into the black if he can hold up for 3+ more years .

Wander Franco was paid $4.35 mm, but earned only about $11.3 mm, so he’s $3.2 mm in the red and staying about there.  He played in Japan in 2023 for an undisclosed sum, posting a .647 OPS, so I doubt he’ll be asked back   

Yangervis Solarte was paid $3.15 mm and earned $8.1 mm.  He’s been out of MLB for 4 years and was about $2.3 mm in the red.

Tyler Duffey was paid $2.23 mm and has earned $7.1 mm.  He pitched 1 major league game in 2023, so he’s not likely to have significant future earnings, but we’ll see.  To date, he’s $1.5 mm in the red.

So, long and short, this market was a loser for Fantex.  They’re about $9 mm in the red on these six deals combined through 2023, hoping that Heaney and McHugh can keep chipping away at the deficit.

 

 

[Emory Eagle]

Out of curiosity, I read through some of the 10-K Fantex filed for FY 2015: https://www.sec.gov/Archives/edgar/data/1573683/000155837016004003/fntx-20151231x10k.htm#Item_1_Business

Was wondering how detailed the risk factors would be.

Amusing to consider the possibilities in the event one were to be excessively granular.  "[X] has demonstrated an above league average chase rate against breaking pitches out of the strike zone.  In the event that [X] is not able to improve his swing decisions on breaking pitches, it may be difficult for [X] to maintain his level of offensive performance." 

Edited November 3, 2023 by Emory Eagle