Wednesday, January 23, 2008

About time?

At some point in the past, I tried to convince my students that they should offer investors shares of their future earnings rather than take out loans to pay for their education. Simple calculations suggested that this would be a reasonably good investment for investors. I felt that some entrepreneur could probably do ok putting in the work to create this market.

Now, it appears, that someone is giving it a try:

Randy Newsom, relief pitcher for the Cleveland Indians, is selling 4% of his future major league salary. There are 2,500 shares in the IPO so each share gets you a claim to 0.0016% of his future salary including bonuses. Shares sell for $20 each.

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