Fantex, the San Francisco company that owns 10 percent of Vernon Davis’ “brand,” has co-invested with the 49ers’ tight end in three Jamba Juice franchises, according to the company.
Fantex also announced Tuesday its board of directors has declared a $.50 dividend per share for its Fantex Series Vernon Davis Convertible Tracking Stock. It will be the third dividend of Fantex Vernon Davis, with the payment coming on April 28, the one-year anniversary of the stock’s debut. The third dividends equals a 15-percent return on the IPO price in one year, according to Fantex.
“The contract between Fantex, Inc. and Vernon Davis created the basis for a first-of-its kind security tied to the earnings of a professional athlete,” said Fantex co-founder and CEO Buck French in a statement. “We’re thrilled that in the first year after the IPO of Fantex Vernon Davis, the cash generated from this contract will have returned to stockholders an aggregate amount equal to 15% of the initial offering price of $10 per share.”
Under its brand contract with Davis, Fantex has a right to co-invest in certain opportunities presented to Davis at a percentage equivalent to the brand income Fantex has acquired. Results from the Jamba Juice investment will be attributed to the Fantex Vernon Davis Tracking Stock.
Fantex describes itself as is a brand-building company that purchases a minority interest in an athlete’s brand and works to increase the value of that brand.
Last offseason, Davis did not take part in the 49ers’ offseason program and forfeited a $200,000 workout bonus and was fined approximately $70,000 for skipping a mandatory minicamp. Davis explained that his decision was “in the best interest of my brand.”
Davis became the first athlete to sell stock tied to the value of his brand. He signed away 10 percent of his future income through Fantex. Davis reportedly received $4 million through the initial public offering, which sold 421,100 shares and raised $4.2 million from investors.
Davis, who is scheduled to earn $4.95 million this season in the final year of his contract, is currently participating in the 49ers’ offseason program. He said he is participating this offseason because he wants to get better.