As Ken Rosenthal reports at Fox Sports, Andrew Heaney has become the first Major League Baseball player to agree to sell stock in his future earnings. For 10% of all he makes through salary, endorsements and personal appearances during his playing career, the Angels rookie pitcher will receive $3.34 million.

That seems like a really bad financial decision to me on the part of the player and also the stockholders, should they emerge. Heaney received a $2.6 million signing bonuses, has earned the major-league minimum $507.5K this year and will receive slightly more in 2016. If wise about his future, he’ll hold on to as much of this money as possible until when and if he earns much bigger amounts.

He’s a pitcher and his arm could blow out at any moment, but he probably could buy insurance for the next couple of years until he reaches arbitration, at which time he’ll likely be earning far more in a single season than the stake he accepted. (I should point out that Heaney is very talented, perhaps not an ace, but better than average.) 

Shareholders will only earn returns if Heaney makes in excess of $33.4 million dollars, which is also far from a guarantee. It seems more likely than not to be a lose-lose situation.

From Rosenthal:

Want to buy stock linked to the brand of Angels rookie left-hander Andrew Heaney? Fans will soon get that chance.

Heaney, 24, has become the first baseball player to enter into a brand contract with Fantex, the company announced on Thursday.

Under the terms of the deal, Heaney will receive $3.34 million in exchange for 10 percent of all future earnings related to his brand, including player contracts, corporate endorsements and appearance fees.

The agreement is contingent on Fantex obtaining the financing necessary to pay the purchase price. The shares are not yet up for sale, and Heaney, his agents and Fantex officials cannot yet comment.

Both Major League Baseball and the players union consented to Heaney’s deal, which could be the first of several involving major leaguers. …

The union also had reservations, including Heaney’s giving up a sizable percentage of his future earnings and risking disclosure on a broad number of issues, including injuries and potential discipline, sources said. 

The deal, however, could benefit the union in other ways. Heaney already has received a $2.6 million signing bonus as the No. 9 overall pick in the 2012 draft. Now, with nearly $6 million in earnings, he likely will be less inclined to sign a below-market extension.•