Indians Farmhand Randy Newsom to Sell Shares of Future MLB Earnings

How many times have you said, "Gee, if only I could get a piece of what players in professional sports leagues get"? Well, now you can!

Real Sports Investments (RSI) is offering four percent of the future Major League salary of pitcher Randy Newsom, a reliever in the Cleveland Indians system. RSI is selling a total of 2,500 shares at $20 per share. Each
 share will entitle the owner to 0.0016% of Newsom's future earnings in the big leagues.

The 25-year-old Newsom has yet to make it to the Majors. He split last season between Single-A and Double-A. In 57 games, he went 4-2 with 18 saves and a 2.80 ERA. Those are pretty good numbers overall, but Newsom was old for the level of competition.

Newsom made the mid-season Double-A Eastern League All-Star team this year and helped the Akron Aeros win the Southern Division Championship. The Indians showed their faith in Newsom by sending him to the Arizona Fall League, where clubs usually send their top prospects.

This is far from a sure thing. It's quite certain that Newsom will never sign a mega-deal like Alex Rodriguez or any of the sports top stars. It is conceivable that Newsom will never spend a day in the Majors.

But if you are going to be an "older" prospect in the game, there's no better position to be than a pitcher. Teams are always looking for good bullpen pitchers and many players with credentials less than what Newsom showed last year get a chance in The Show.

The trick for Newsom is to start strong. Because while many pitchers will get a shot, most of them will not get limitless chances to prove they belong. But a mid-season call-up with a strong initial showing may be all it takes to get established.

Currently, the Major League minimum is $390,000 per year. Most players in the Minors who get called up to the Majors will get a pro-rated share of that amount for the time they are in the big leagues. By terms negotiated with the Players' Association in the Collective Bargaining Agreement, owners can determine how much, if any, a player gets over the minimum salary in the early part of a player's career. As you might guess, owners are typically not generous in this window when they hold the hammer.

 
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Thanks for the interesting story, Brian. I'm curious how the group picked Newsom and not some other minor leaguer.

Posted on 01/30/2008 at 5:01:43 PM

This one does raise some questions doesn't it?

Posted on 01/25/2008 at 2:01:48 PM

I can't see this as being legal, for the potential mob influence that you state. It will be interesting to see what happens here, legally.

Posted on 01/24/2008 at 5:01:19 PM

Hah! I'm sure that Newsom and his agents are the beneficiaries of the income derived from selling the shares, so they've already figured out (as you have) that they are on the profitable end of this. Would have been a better deal if Newsom had offered to donate the proceeds to charity and then take the writeoff.

Posted on 01/24/2008 at 2:01:16 PM

Then again, you noted it was not a good risk...so I'm following your advice :)

Posted on 01/24/2008 at 6:01:27 AM

Now this is intriguing. I never really thought about this as a possibility before. Wonder how many takers there will be? Probably plenty.

Posted on 01/24/2008 at 6:01:43 AM

I had to double check this wasn't humor...I had no idea this was possible. Fascinating! And, I'll take your financial and sports advice and pass. :-)

Posted on 01/23/2008 at 8:01:37 PM

Sounds like a fun investment for all you fantasy leaguers.

Posted on 01/23/2008 at 8:01:01 PM

Very interesting! Great article! :-)

Posted on 01/23/2008 at 4:01:52 PM

Wow, that's an interesting concept...where's my checkbook?

Posted on 01/23/2008 at 1:01:40 PM

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