The following is a sponsored post by Finlete.
For as long as anyone can remember, sports fans have sought to get closer to the games, teams and players they support so passionately, investing everything from time to emotion to money. From Duke students camping out in tents to get the best seats, to baseball fans buying rookie cards, to football fans buying real stakes in Real Madrid and the Green Bay Packers. Of course, the Internet and smartphones have changed the game, fantasy sports exploded in popularity about 20 years ago, and sports betting has exploded in the past decade.
Today, the way we spend money on sports continues to evolve rapidly, including the ability to invest in an athlete’s career in exchange for a share of their future earnings. This is a corner of the sports world that is starting to make some serious noise, and sports investment platform Finlete is a key player.
Finlete caps off the year by giving fans the chance to invest in MLB prospects in 2024 Echidri Vargas and Leonard Bernal.
Ranked No. 16 in the Miami Marlins system (source MLB.com), Vargas is a Dominican center infielder who possesses an aggressive offensive approach and an impressive power-speed combination that ultimately makes him He becomes a key figure in Miami’s return of Jake Berger this winter. Bernal is the latest athlete to join Finlete, who emerged as the ninth-ranked prospect in St. Louis’ system with a sharp eye, a strong arm and plenty of loud contact (source MLB.com).
For potential investors who may lean toward the more mainstream, three-time AL All-Star Emmanuel Claes Becoming the first major leaguer to sign with Finlett in the middle of a historic season and giving his legions of fans the opportunity to financially join him on the journey. As far as big-name investments go, there’s nothing bigger than a Cy Young-certified candidate in the prime of his career.
With a growing roster of professional athletes set to be announced in 2025, Finlete is growing rapidly and building on the foundation established by some of the pioneers in the sports investing world.
Fantex, which operated from 2012 to 2016 and allowed fans to buy and sell securities tied to athlete contracts, was a great example of being ahead of its time. Fans were able to invest in the careers of Vernon Davis, Alshon Jeffery and other NFL players, but that was before the crowdfunding and alternative investment wave hit.
Since then, investing in athletes’ careers has been dominated by private hedge funds such as Big League Advance (BLA), founded by former MLB players, and X10, founded by former Fantex executives. Not everyone is qualified to invest in hedge funds, and even those who are qualified may not be authorized to invest. It is exclusive and restrictive. This is where new companies like Finlete come in, applying the lessons learned from Fantex while democratizing investment opportunities, much like BLA and X10 have been doing for the past 5 to 10 years.
For example, the BLA successfully signed several future MLB All-Stars, including Elly De La Cruz, Jazz Chisolm Jr., and Fernando Tatis Jr., early in their professional baseball careers, long before they became household names.
The model is simple: Pay prospects an upfront fee in exchange for a percentage of their potential future MLB revenue.
For athletes, it’s cash now, cash later. It’s now giving up a fraction of its potential advantages in exchange for more security. It’s risk-free in the sense that it’s not a loan, players only owe investors money when they make it to the major leagues, and even then it’s only a fraction of their MLB salary. Small portion. A cash advance also helps increase their chances of turning pro.
Elly De La Cruz is a prime example. He signed with the Cincinnati Reds in 2018 for $65,000, which is pretty small considering those signing bonuses range from $10,000 to over $9 million. The additional funding provided by the BLA allows him to supplement his signing bonus and his meager Major League Baseball (MiLB) salary, which helps him cover basic expenses, fund his training, support his family, and better prepare for the grind of the long season ahead. Practice to be prepared. The funds also often mean players can focus on baseball year-round without having to work another job in the offseason.
The BLA, on the other hand, receives a percentage of Elly’s potential future MLB salary. If a player succeeds in the major leagues, they may lose some ground by having to give up a portion of their income, while the investor (in this case, the BLA) faces the risk of a capital loss since this is an investment, not a loan , and there is no guarantee that MiLB players will reach or stay at the MLB level.
Finlett believes it’s a missed opportunity for athletes to sign these agreements with hedge funds. By signing with Finlete, athletes can turn people from all walks of life into investors, thereby building a group of extremely loyal fans. By connecting athletes and fans financially, Finlete is taking fan engagement to the next level because the fans athletes gain through Finlete will remain fans throughout their careers, no matter where they are. Which team to play for.
While having disposable income will always make investing easier, it’s very easy for the general public to reap the financial benefits of a real athletic career. Finlete investors, for example, can invest as little as $300. Investing $1,000 or more also earns you access to bonus shares on the platform.
This is very similar to the fragmented investment opportunities that have emerged in other industries. Want to invest in art? Try a master piece. real estate? Choose Fundrise or Happy Nest. Tech startup? Check out Wefunder or Republic. The common denominator is that it’s now easier than ever to invest in anything that piques your interest. The question now is – what happens next?
For those who choose Finlete, the answer is more. More athletes, more experiences, more benefits, more ways to interact with athletes, and ultimately more opportunities to combine a love of the game with a real investment. The future of sports investing is now here, and the prospects for 2025 are exciting.
