Like everything else Michael Lewis does, his recent article which discusses the move towards tradable securities in pro athletes is beautifully written and very interesting.
My friends (and relatives actually) at ProTrade.com are right at the heart of this new trend.
(hat tip to Chris Thayer)
and 
. You can also watch it on 
an absolutely interesting idea with only 1 flaw: individual players are more susceptible to sabotage than companies are (e.g. nancy kerrigan). if i were a star player that finds out there’s a sudden large open interest on the short side of my stock, i’d hire a whole bunch of new bodyguards…
an absolutely interesting idea with only 1 flaw: individual players are more susceptible to sabotage than companies are (e.g. nancy kerrigan). if i were a star player that finds out there’s a sudden large open interest on the short side of my stock, i’d hire a whole bunch of new bodyguards…
Well, this is dumb dumb dumb.
The big difference between IBM and Kobe Byrant is that Kobe can be shot dead.
Well, this is dumb dumb dumb.
The big difference between IBM and Kobe Byrant is that Kobe can be shot dead.
Why stop at athletes ? When can I buy stock in economists and software developers ?
Why stop at athletes ? When can I buy stock in economists and software developers ?
ProTrade appears to be just another sports betting site. It’s dressed up to look like a financial instrument, but in the end there is no underlying value.
I’m not dumping on it, but it looks to me a lot different from the main idea of the article: trading actual players’ contract futures.
The first thing that strikes me is there might be problems with information asymmetry. Hockey players often play for extended lengths of time injured, while keeping their injuries very secret. The reason for the secrecy is that opposing players will target their injury and try to inflict futher harm if they knew about it.
Players probably know a lot of things that affect their future performance that the general public doesn’t. They could take advantage of this to sell shraes of future contracts at inflated prices.
Sounds like a market for lemons…
ProTrade appears to be just another sports betting site. It’s dressed up to look like a financial instrument, but in the end there is no underlying value.
I’m not dumping on it, but it looks to me a lot different from the main idea of the article: trading actual players’ contract futures.
The first thing that strikes me is there might be problems with information asymmetry. Hockey players often play for extended lengths of time injured, while keeping their injuries very secret. The reason for the secrecy is that opposing players will target their injury and try to inflict futher harm if they knew about it.
Players probably know a lot of things that affect their future performance that the general public doesn’t. They could take advantage of this to sell shraes of future contracts at inflated prices.
Sounds like a market for lemons…