November 17, 2010
Fantasy Sports is a huge industry with millions of participants and a market impact in the billions. If you’ve ever participated and had your team win, you probably remember how great it felt. Now wouldn’t it be interesting if you could just invest in your favorite players without having to run a whole team to cash out? Introducing StartStreet: The Sports Stock Market, and your way to cash in on your favorite athletes. With StarStreet you can buy, trade, and sell shares of the players you believe have it all. Just like on Wall Street, your shares will go up and down based on the market views and actions. StarStreet is currently in “pre-season” mode and inviting investors to join their 2010-2011 NFL Market.
From the site:
Virtual shares of a player enter the market through an initial player offering (“IPO”). Any trader can bid for shares of a player during the IPO which is done through a blind yankee auction. The total of the winning bids for a player sets the player’s initial total value. For the time being, once invited, investors will be allowed to (and, for now only able to) deposit $25 through PayPal into their StarStreet cash account. Once on the market, the players trade in constant competition. When one player’s value goes up the rest go down proportionally to compensate and vice-versa, so that the total market value stays equal to the exact amount of money invested in it. The current value is the amount per share that will be paid out to the shareholders when the shares are retired from the market.
Like with any brokerage firm, StarStreet takes a 4% commission from the sell side of any trade. Additionally, no single investor can own more than 20% of any players shares.
StarStreet was created by Jeremy Levine, a sports fanatic who wanted to do more than just own baseball cards of his favorite players. Once Jeremy realized that he had no shot on playing in the big leagues and getting his, he decided that there had to be another way to get in the money-making sports industry, thus creating StarStreet.
Go long with your favorite player on StarStreet and be sure get your tickets to Tech Cocktail NYC on November 19th to meet the StartStreet team and get your invitation for the pre-season market. StarStreet is a TechStars company.
Did you like this article?
Get more delivered to your inbox just like it!