In the first round of the 2013 NFL draft, the Bills selected E.J. Manuel with the 16th overall pick. The Bills were hoping that Manuel would develop into the franchise quarterback that the organization had been sorely lacking for a long time. In his first year, Manuel showed some promise, passing for almost 2000 yards and nine touchdowns in a season that was cut short by injury. But he also threw nine interceptions, a trend that would eventually end his time as the starter in Buffalo.

Stock Investment in Manuel.

What many do not know is that E.J.

Manuel effectively sold stock in his future income a year after he was drafted in 2013. Fantex Inc, a financial services firm, allows Investors to purchase and trade securities in individual athletes. Manuel received $4.9 million from this firm in 2014 for a 10% stake in his future income. That valuation is based upon projected career earnings of approximately $104 million, which was equivalent to a present value of about $49 million according to a set discount rate.

Fantex IPO.

When Manuel's stock was initially offered to the public, it was for a price of $10 per share at this $49 million dollar valuation. That means that a $4.9 million dollar investment would buy 10% of Manuel's cash flows in terms of income each season.

An investment in Manuel would have been a disaster. When E.J. was benched by the Bills in 2014, the value of each share dropped to $5. That's half of what Manuel was valued at in the IPO!

Aside from Manuel, the Fantex tracking stock model was a disaster. There was low trading volume on the player stocks and the company and its investors weren't making any money.

The board of directors suspended operations and stopped the trading of player stocks. Those who invested in Manuel received exactly $1.91 per share.

Manuel's final worth according to stock value? Approximately $9.36 million, more than $40 million less than what he had originally been valued at.

Manuel Still a Winner.

When Manuel made this deal in 2014, he received $4.9 million for 10% of future earnings.

It's unlikely that any team will be willing to pay E.J. anywhere close to enough to reach the projected $104 million in the future. Manuel therefore made this deal at the right time and will certainly not be paying a significant portion of future earnings to Fantex Inc.

The losers in this deal were investors, Fantex, and the fans who had to watch Manuel attempt to play football. Manuel made a smart business decision, but everyone else got screwed.