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A new startup called Vestible imagines a world where most athletes are acting like their own stocks, with fans able to buy shares in their future earnings.

Why it matters: The startup, which recently received SEC clearance, is the latest gambit that allows people to directly invest in celebrities' earning power.

How it works: Vestible, founded by former Oklahoma State football players Parker Graham and Yves Batoba, so far has one athlete signed up: Denver Broncos linebacker Baron Browning.

Athletes are treated the same as a new stock debuting on the exchange, in that there's an initial offering and then shares in the athletes' earnings can be traded after that closes.

Primary offerings go for $10 a share, and 80% of the money raised goes directly to the athlete.

Over $100,000 has been invested in Browning's stock since the offering went live in May, after Vestible received SEC and FINRA clearance.

The big picture: Fans investing in their favorite celebrities or athletes is nothing new.

David Bowie memorably offered so-called "Bowie Bonds" in the late 1990s, which were bonds backed by future revenue from his song catalog.

There have been other recent, similar efforts in sports from firms like Fantex and Big League Advance. Fantex, which had signed 20 athletes to give up a portion of their endorsement earnings, closed after five years in 2017.

But Batoba tells Tim today's fan is "the most sophisticated sports fan ever" and that platforms like Robinhood have made millennials more investment-savvy for their age compared to previous generations.

"You got fans out here who are creating podcasts, and they know the inner workings of salary caps as well as any point history, as well as the GM," Batoba says.

Zoom in: Vestible looks for athletes who are outperforming their rookie contracts.

Browning fits that mold: A third-round pick in 2021, he is heading into the last year of his rookie contract — his base salary will be just over $3 million this coming season — and is viewed as a key cog for the Broncos' defense.

"That next contract is the real question, and that's why investors would want to invest in Baron as he could be making anywhere from $13 million to $20 million next year," Graham says.

What's next: Vestible said it is adding two college football athletes who are expected to be first-round draft picks, as well as an NBA player.

1 big thing: Bowie Bonds for athletes 

Illustration of a golden football helmet with a front grill shaped like a dollar bill sign

It's been exactly one year since the PGA Tour and Saudi Arabia's Public Investment Fund announced their intentions to combine forces, yet a deal appears no closer to fruition.

Why it's the BFD: The shocking deal, which was supposed to end golf's civil war between the PGA Tour and LIV, has instead been littered with drama and roadblocks, Tim writes.

Zoom in: Talks are still ongoing between the two sides, with an in-person meeting scheduled for tomorrow, the New York Times reported. 

The meeting with include members of PGA Tour's transaction committee, such as Tiger Woods as Fenway Sports Group's John Henry. Rory McIlroy will also join remotely, the NYT reported.

The transaction committee, part of the newly created PGA Tour Enterprises, has taken the lead in talks with the Saudis in recent months, as Axios has previously reported.

Last month, the two sides exchanged term sheets that would have seen PIF invest $1.5 billion in the for-profit entity, the NYT reported.

Catch up quick: The framework deal announced last June would have combined the commercial businesses of the PGA Tour, DP World Tour and LIV Golf.

The surprise announcement immediately sent shockwaves throughout the sport and drew the ire of some players and U.S. regulators wary of foreign influence in golf.

As talks dragged on, the PGA Tour attracted further interest from U.S. investors to co-invest in the deal.

The PGA announced a $3 billion investment from a U.S. group, led by Henry and New York Mets owner Steve Cohen, in January. 

PGA-LIV talks drag on one year after surprise deal announcement

2. The BFD: PGA-LIV one year later

Illustration of two golf clubs crossed in front of a large fire

Go deeper in our full database in the Axios Pro Deals Tracker.

• Pika, a Palo Alto text-to-video AI platform, raised $80m at a $470m post-money valuation from Spark Capital, Lightspeed Venture Partners and Greycroft. axios.link/45b0Yzz

• Cartwheeel, a text-to-animation platform, raised $5.6m in seed finding. Accel led and was joined by Khosla Ventures, Human Ventures, Heretic VC, MVP Ventures, Correlation Ventures and Pelion VC. axios.link/4e8gQXQ

• OneScreen.ai, a Boston provider of out-of-home performance marketing solutions, raised $4.7m from Asymmetric Capital Partners, Techstars and Impellent Ventures. axios.link/3V955aV

3. Deal flow

• Shane Smith, Vice co-founder, is returning to the company as editor-in-chief of Vice News. axios.link/4bNZWMD

• Portia Archer, former NBA G League COO, will join the WTA as CEO to replace Steve Simon, who will remain in his role as WTA chairman. axios.link/3VuSIaD

• Steven Schiffman, former Nat Geo Channels boss, has been named executive chairman of EarthxTV, a sustainability and conservation-focused network. axios.link/3XbwifJ

4. Movin' on up (or out)

🎙️ Vice's Shane Smith is returning to the spotlight, with few regrets (WSJ)

"Despite his title of editor in chief, Smith will have no management responsibility, Vice said. And his unit, which now focuses on long-form documentaries, bears little resemblance to what was once known as Vice News," Alexandra Bruell and Jessica Toonkel write.

😰 The summer box office crisis: Is the sky really falling this time? (THR)

"Box office observers agree that the ecosystem is incredibly fragile but hang on to the hope that moviegoing will pick up in the coming weeks when all-audience tentpoles 'Inside Out 2,' 'Despicable Me 4' and 'Deadpool & Wolverine' come out, followed by 'Beetlejuice Beetlejuice' in early September. But there won't be a steady volume of product until 2025," Pamela McClintock writes.

😡 Clash over phone hacking article preceded exit of Washington Post editor (NYT)

"The interaction over the court ruling was not the primary reason for her resignation. [Executive editor Sally] Buzbee had already been mulling her future at The Post because of a plan by [publisher and CEO Will] Lewis to reorganize the newsroom that he laid out to her in April," Benjamin Mullin and Katie Robertson write.

5. Channel surfing

an illustration of a television that says "channel surfing" on the screen being held up by hands on a dark smoky background

👀 Situational awareness: U.S. regulators are opening a broad antitrust probe into AI giants Microsoft, OpenAI and Nvidia, Ashley Gold and Michael Flaherty report.

@tim_bays: Mavericks vs. Celtics on ABC. A week without pro men's basketball mercifully ends tonight. 

✏️ Thanks to Michael Flaherty for editing and Katie Lewis for copy editing this newsletter.

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June 06, 2024

1 big thing: Bowie Bonds for athletes