Real Sports Investments
Professional Athlete Investment Platform
Definitions:
Member: Any person that agrees to the guidelines set forth in this document. A person is considered a member if they accept the terms and conditions set forth in this document. Acceptance occurs when a member chooses “yes” on the member sign-up page located on http://realsportsinvestments.com/Sign_Up.html. When a person selects the “yes” option on the member sign up page, they become a member of Real Sports Investments, LLC and must abide by the following terms and conditions.
Buyer: Investor and or customer. All buyers must be Members.
Owner: An owner is a member who purchases 1 or more shares of an RSI’s athlete.
Share: A share is considered a tradable entity only at realsportscards.com or realsportsinvestments.com. A share is not considered a security. A share does not fall under the protection of the Securities Act of 1933, and therefore the future cash flows associated with this share do not have the protection of that act. Shares are sold in private offerings only. Shares will not be sold to the public, only members of this private website. Shares can only be traded online at realsportscard.com or realsportsinvestments.com. Shares can only be traded by members. A share gives the owner of that share, a claim to a percentage of the future major league earnings of a particular athlete. A share will be clearly labeled as to which athlete’s earnings it has a claim against as well as what percentage claim it has against the future major league earnings of that particular athlete. The number of shares that an athlete wishes to sell will vary depending on that athlete’s desire to sell shares. The percentage claim of 1 share will vary by athlete.
Seller: Real Sports Investments, LLC or RSI is the “seller”
Future Major League Earnings: the good and or service that is going to be sold by the seller and purchased by the buyer. Future major league earnings are considered consideration with regards to this contract. Future major league earnings are here by defined as all money that is paid to a professional athlete by a major league team while that athlete is in the highest league and or level of their respective sport. Those leagues are defined as: Major League Baseball (MLB), National Basketball Association (NBA), National Football League (NFL), National Hockey League (NHL), Professional Golfers Association (PGA), and National Association of Stock Car Auto Racing (NASCAR).
Contract Terms and Conditions:
By selecting “yes” on the member sign-up page of realsportscards.com or realsportsinvestments.com website, you are agreeing to become a member of Real Sports Investments, LLC and agree to all the terms and conditions set forth in this agreement.
Only members will be allowed to purchase the future earnings of professional athletes.
Only members will be allowed to trade shares of their athlete’s future earnings, and only members are allowed to trade their shares via the Real Sports Investments trading platform located online at realsportsinvestements.com and realsportscards.com.
By selecting “yes” on the member sign-up page, the member understands and agrees that this agreement is a legally binding contract.
By selecting “yes” on the member sign-up page, the member understands and agrees that they are in a contract with Real Sport Investments, LLC and only Real Sports Investments, LLC. The member my not claim the earnings of a professional athlete directly. The members are only entitled to payment by Real Sports Investments, LLC. Real Sports Investments, LLC will be engaged in contracts with professional athletes. When Real Sports Investments, LLC receives cash from its contracts with professional athletes, RSI will then allocate that cash to the owner and or owners of that athlete’s shares. Real Sports Investment, LLC will be the necessary intermediary between the owners of these shares and the professional athletes to which with these shares are associated.
- Seller sells to buyer; and buyer purchases from seller. The buyer will purchase shares from the seller on realsportscard.com and realsportsinvestments.com. The buyer agrees to the prices set forth on these websites. The prices are non negotiable. The website will clearly state what percentage claim 1 share has on the future major league earnings of the professional athlete to which these shares are associated. The seller will receive consideration in the form of a share certificate. The certificate will clearly define how many shares are owned, what athlete they lay claim to, and what percentage claim they have on the athlete.
- Buyer agrees to pay the seller for shares. Buyer will pay the seller the price per share for all shares as noted on the website at the time of purchase. The buyer will also pay the seller an additional 15% of the total share purchase price as a player valuation and share allocation fee. The buyer will also pay the seller 2.9% of the total share purchase price + player valuation and share allocation fee as an online processing fee.
3. Delivery of earnings and payment of purchase price.
a. The Buyer agrees to either pay online at realsportsinvestments.com or realsportscards.com via credit card, or agrees to mail a check (pay to the order of Real Sports Investments, LLC) in the agreed upon amount, as noted by the website, to the following address:
Real Sports Investments
Attn: Investor Relations Department
a)
4. If payment is not received by the seller within 10 business days after notice of the purchase, then this contract can be voided by the seller at any point after those 10 business days.
5. Real Sports Investments LLC, is engaged in contracts with all of the professional athletes you will see on the websites: realsportscards.com or realsportsinvestments.com. RSI athletes will pay RSI an agreed upon amount equating to a percentage of the athlete’s future net major league earnings. When the athlete receives payment, RSI will receive payment. At that point, RSI will then pay the owners of that particular athlete’s shares. The owners will receive payment in the form of an increase to their RSI member’s account, or in the form of a check. Members agree and understand that this payment is considered taxable income, and will be taxed at the appropriate level for each individual owner. Owners understand and agree that they will receive gross payment in the form of gross dollars. Taxes will be taken out through federal tax withholdings, and it is up to the owner to understand their own tax situation as it applies to them. Owners also understand that capital gains taxes will apply to any shares that they sell for a higher price than they paid. Owners are responsible for documenting and paying their own capital gains tax.
6. If any members agree to purchase shares of any athlete, this contract is valid indefinitely.
7. If a player quits or retires within 2 years of signing an agreement with Real Sports Investments, LLC, then that player must repay Real Sports Investments, LLC the lump sum (less taxes paid by seller) of money that he received from engaging in that particular contract. The athlete will also have to pay interests on the money that he received from RSI. Interest will be calculated using Treasury-Inflation Protected Securities (TIPS) as the appropriate rate. If the player quits within two years of receiving money from RSI, then that player’s repayment amount will accumulate interest during that time period. If the player quits or retires within 2 years, Real Sports Investments will pay back the owners of the shares of the professional athlete who broke his agreement or contract with RSI after RSI receives payment from the athlete in violation of his contract with RSI. When RSI receives re-payment from the athlete, RSI will then re-pay the current owners the amount that was initially invested in the athlete by the percent that they own plus interest. Buyers will not be re-paid for any valuation services, share allocation fees, transaction costs, trading fees, or purchasing and processing fees.
8. In the event that an athlete fails to pay, quits or retires within 2 years, RSI is committed to recovering the amount owed by the player that breaks his contact. RSI will take legal action against that player for payment and damages if necessary. Any owners of shares of that player are forbidden to take legal action against any athlete for failure to pay RSI. By becoming a member of RSI, you understand that you are foregoing your right to take legal action against any athlete for failure to pay RSI. By agreeing to this contract, members agree to the fact that RSI will act in their behalf because receiving payment from athletes who do make the major leagues is in both the member’s best interest as well as RSI’s best interest. Buyers will not be re-paid for any valuation service fees, share allocation fees, transaction cost fees, trading fees, or purchasing and processing fees.
9. RSI athletes are permitted to keep the money that they receive from RSI if they are released by their employer or if are forced to retire due to injuries after submitting notice of retirement and providing reasonable documented proof to RSI. Documented proof is required in the form of a copy of the termination letter from athlete’s former employer or a licensed doctor who has knowledge of the athlete’s injury history or other document as agreed to by RSI. RSI reserves the right to investigate such claims before they release the athlete from his contractual liability. If a player leaves baseball for either of these reasons within the two year time period after they receive payment from RSI and all conditions set forth above are met and accepted by RSI, the athlete will not have to repay RSI and investors will not receive payment. Buyers realize and assume these risks at the point of purchase. Buyers will not be re-paid for any valuation service fees, share allocation fees, transaction cost fees, trading fees, or purchasing and processing fees.
10. If an RSI athlete is banned from playing in his respective major leagues for any reason including the illegal use of performance enhancing drugs, that athlete will repay RSI. Repayment will be the entire lump sum (less taxes paid by the athlete) that the player in violation received at the time he signed his contract. Interest will be calculated at the TIPS rate for the time period that he had possession of the money, and will be paid to RSI along with the principal. After receiving payment, RSI will allocate the money to the current owners of shares that have a claim against the player in violation. Buyers will not be re-paid for any valuation service fees, share allocation fees, transaction cost fees, trading fees, or purchasing and processing fees.
11. Member agrees not to take legal action against RSI in the event a player fails to pay. Member will agree and abide by these rules in order to purchase any shares from RSI. Member agrees to have grievances against RSI solved by an arbitrator selected by RSI.
12. Buyer understands that the athlete can void his contract with RSI if it prohibits or limits his ability to play in the Major Leagues. If Major League Baseball or the Major League Players Union, or any other group or entity, prohibits the athlete, who is engaged in a contract with RSI, from entering into the Major Leagues because of his agreement with RSI, then the athlete can choice to void his contract with RSI. In this event, the athlete then agrees to repay Real Sports Investments LLC the entire lump sum of money that he received from engaging in contract with RSI. The lump sum will be the original amount of money that the athlete received less any taxes paid by the athlete. The athlete will have already paid taxes on money received from RSI due to the fact that the money the athlete receives is viewed as taxable income. RSI and buyers understand that they will not be able to reclaim any money that the athlete paid in taxes. In addition, the athlete will pay RSI interest on the lump sum received in the event the athlete wants to void the contract. Interest will be calculated using Treasury-Inflation Protected Securities (TIPS) as the appropriate rate. The time period will be congruent with the time the athlete had possession of the money. If the player quits within two years of receiving money from RSI, then that player’s repayment amount will accumulate interest during that time period. When RSI receives re-payment from the athlete, RSI will then re-pay the current owners the amount received and allocated that amount to current owners of shares by the percent that they own plus interest. Buyers will not be re-paid for any valuation service fees, share allocation fees, transaction cost fees, trading fees, or purchasing and processing fees.
13. Successors and assigns. This contract is valid no matter who the owner is. This contract will transfer along with the ownership of any and all shares sold by RSI. Any person who agrees to buy or sell shares of a future athlete originally sold by RSI agrees to this contract in its entirety or ownership will not be transferred.
14. When this contract is signed by both the buyer and the seller, then there is an offer and an acceptance. When signed, this contract is valid. This contract is considered signed and valid when the buyer clicks “yes” I accept the terms and conditions on either realsportscards.com or realsportsinvestments.com. This contract is also considered valid when a buyer fills out the “buy share” form, signs it, and mails it to Real Sports Investments, LLC.
15. The consideration in this contract will be cash paid to the seller and the promise to pay to the buyer.
16. Buyer understands that if an RSI athlete never makes the major leagues, then the buyer will not receive any payments. Buyer understands the risk and reward relationship associated with all shares the buyer purchases. Buyers will not be re-paid for any valuation service fees, share allocation fees, transaction cost fees, trading fees, or purchasing and processing fees.
17. By signing this contract the buyer agrees that they will not be able to purchase more than 5% of any one player’s total shares. RSI does not want any one person or entity to own too much of any one player.
18. Members agree that purchasing shares in a player is in no way considered a public offering as defined by the Securities Exchange Commission (SEC). Members understand and agree that purchasing shares of an RSI athlete is a private offering only available to RSI members who agree to these terms and conditions.
19. By signing this contract, the buyer and seller understand that the consideration paid and exchanged is not a gift.
20. Anyone affiliated with Major League Baseball, Minor League Baseball, or any of their affiliated organizations, including players, umpires, coaches, employees, trainers, interns or anyone else with access to information not available to the public is strictly prohibited from purchasing from Real Sports Investments, LLC. By accepting these terms you certify that you are not affiliated with any organization involved with professional baseball.
IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the date when the member agreed to this contract by selecting “yes” on the member sign-up page.
Signature:_Michael McGirr Date__12/15/07____
Real Sports Investments, LLC
President and CEO
Michael McGirr
