Forget the stock market, it’s falling apart. Invest your money in OneSeason instead, a newly launched San Francisco-based startup that lets you invest real money in professional athletes. Alex Rodriguez is a steal at $7.00 per share ($17.6 million total value). I just bought one share of Kobe Bryant for $7.48 (he’s valued at $77.6 million).
The company was founded by CEO Mike Sroka and CTO DJ Burdick with $250,000 in seed funding from investor Phil Drayer.
The market demand for individual athlete stocks, called “synthetic ownership interests,” is determined solely by the market based on “onfield play, off-field behavior, fan opinion and future prospects” says Sroka. Stock is delineated with ticker symbols just like financial securites. So when I bought one share of Kobe Bryant, I really bought one share of KOBE.
This is all done with real money, although the site gives each new user $10 if they register with a credit card (no money has to be put into the account to get the $10, however). Money can be added via PayPal, Google Checkout and via credit card. Funds are redeemed via check.
Since there’s no underlying financial asset that you actually own, it’s unclear how efficient the market will ever really be. In fact, it seems to be ripe for big abuse. Get a few friends together and run up a stock and then cash out. And there’s no risk, at least for now, that the SEC will be coming after you.
But assuming the market is properly regulated, this could be a great site for sports nuts to risk some money outside of the normal betting world. As Kobe hits that dunk, look for his price to spike a little as users log in and BUY.
One Season makes money by taking 1% of each trade off the top, so it’s purely a volume game for them. The company also earns interest on money it holds.
Sroka isn’t being modest about the companies potential, either. He says once the site reaches 3 million users after a few years, revenue “could hit $50 million to $100 million.” He added, “The ultimate potential for the website is far greater than the $800 million fantasy sports industry.”
I’d imagine other companies might join the party if this takes off like he says. Professional leagues may even want to get in on the action.
This could be big.
They should get some niche sports on there – like gymnastics, figure skating, and also all those in the olympics – and promote the site through message boards and the like.
They could also make deals with athletes – all shareholders by Dec 15th get a phone conference, or something. (and the athlete gets a cut).
There’s something very wrong here : ) But I don’t doubt people will buy into this.
Isn’t this site just a clone of http://www.protrade.com?
no. protrade is a game which uses fake money (so is legal, first of all), but also makes sense, because based on actual performance they reward you for something that actually matters and is measurable.
OHH, now I get it.. Mark works for protrade.. This all makes sense now. Read all of his hate mail below.
How one could be enthusiastic about Protrade and not Oneseason is beyond me. I have tried both and would prefer to be paid in REAL money, not toys or prizes for my sports knowledge and time spent on site. Sorry Mark, cat is out of the bag..
Yeah, this Mark guy really has it out for oneseason.. Seems too personal to be objective. Hmmm.
Shares of the Moon for sale inquire within (while supplies last) .
Shares@MoonLocator.com
lame
Johnny got it right… this is so not new.
With all of the economic madness and rumors of layoffs at Ebay, there’s got to be some real news out there…
Old Idea, with a new theme… Never had actually work for anyone…
You have the wrong url, above. Drop the e at the end of http://www.oneseason.com
I’m a journalist and a trader who covers prediction markets at my blog, and I recently posted about OneSeason – http://politick...eason-last.html
i’m curious how long it will be before the CFTC has something to say about it. If it’s allowed to remain in operation, this could be a big victory for all US prediction markets, whose status remains murky due to the 2006 Gambling Act.
So they’re issuing securities in athletes for money? Pretty clearly illegal. Replace the words “Kobe Bryant” with the words “real estate” or “orange groves in Florida.” Then ask yourself whether that sounds legal.
Too funny, you’ve already lost money on Kobe. And you just posted this not long ago… it’s a cool site… reminds me of the one you had on here so that you could buy ‘daily weather insurance’ — or something similar. I suppose it’s true – you can trade anything of value… and I suspect that there’s going to be about a million more of these sites before long if this works out… I already have 29582 ideas.
BTW, have these people actually tried to do like the Barrons of the internet and lock everyone else out with patents? Just curious.
damnit, people, please buy KOBE so I can make a little money on that trade.
i really really really really really hope you are smart enough to ONLY use the 10$ they give you free. and even then, only to cycle a trade and get it into cash you can take out of the system ASAP.
I just bought your KOBE.. thanks for the steal. He will def go up as the season approaches.
ok… so I just read the FAQ … and you can place up to $2500 INTO an account each year… but no limit in what you can take out. Early adopters, who are the ones that will see the most spilts (splits come at a $20 share price maximum) can really rack up some serious money with a long term strategy. Especially if this site gets a TON of press (like TC) and a lot of new members join…. sign me up! lol.
I think that $800 million figure quoted about the fantasy football industry is way off. The entire industry is estimated at $1.5 billion by the Fantasy Sports Trade Association, and 80% of that is football.
Not exactly. 80% of people who participate in fantasy sports do so for football. That doesn’t make it 80% of the broader industry, because many people also play other sports. Baseball is around 30% is, NASCAR maybe 20, etc.
Can you tell what area my startup is in?
The site is great. I have made over a Grand cashed it out and expect to make a few more. Besides the money that can be made, it’s fun. The best analogy I heard was virtual baseball cards. Get ur friends see who can get the most of Kobe at the cheapest price! Good work fellas can’t wait to hear all the praise from the nonbelievers a month from now, after we have all made thousands.
Hey Michael, should’ve got in on the KOBE IPO
Check out the new IPOs in the pipeline.
http://www.ones...on.com/trading/
seems you tried to do a cool thing, so i really hope you don’t end up with charges pressed.
p.s. i want to contact your VCs about my idea. synthetic ownership of my neighbors houses. they are such good houses! the value of those houses will go up and down and you can trade your nonexistent ownership of them! oh wait, now i’ve got another one…synthetic ownership of startup websites! wait wait wait, i got another one! synthetic ownership of the oneseason shares! my god you really hit a wellspring of ideas.
personally, i’m most excited about the startup website idea. so i’ll buy 1% of the synthetic shares of techcrunch, and then when it one day IPOs for like 100 million dollars, 1% of the actual company is worth 1 million dollars….so my 1% synthetic ownership would be worth….oh, still zero.
back to the drawing board.
I don’t see any reason why his site would violate any laws. It’s simply facilitating the sale of virtual goods (and presumably selling them directly during an IPO). It’s not gambling.
hey matt –
two posts below you remark (correctly) that it’s a pyramid scheme. those are illegal in USA.
Yes they have 21 patents pending with the federal government.. Seem to be a lot of haters in this arena.. These guys created a new marketplace and there is not anything else that comes close to comparing to it, especially not protrade.. People should probably spend a bit of time getting educated before making blind comments. Hat is off you you guys! Wish I had thought of it.
Hey Mark – If you spent a tenth of the time developing an idea or two in place of hating on another’s you may be able to move out of your mother’s basement before too long. This is the furthest thing from a scheme, it’s a new marketplace. You could call the stock market gambling as well with your criteria. Your fear and paranoia is laughable. There is a cap as to how much you can deposit every year. This is meant to be fun and give people a chance to participate in their passion. Really Mark, take a deep breath and get a life.
Is this a joke? Am I taking crazy pills? This is neither a prediction market nor an equity market. This is a scheme. Anyone who gets involved is throwing their money away. Michael, usually your good at calling things what they are, and this is a pathetic excuse for a business. I’m willing to bet the positive comments are from people who work there. To all those folks, RUN from this company.
Absolutely agree. The last person holding the “stock” will be greatest fool. seems like the founders are just trying to test out the greater fool theory here.
Unfortunately, this is one giant pyramid scheme. Unlike a stock, or even a contract on Betfair or Intrade, you don’t actually own part of anything, there’s no possibility of a payout. Therefore they’re just virtual baseball cards, but without the whole being 70 years old thing that makes actual baseball cards sell. And unlike any virtual good that people pay for, it has no utility in the context of a broader game or activity (like WoW gold or even Facebook gifts).
It’s going to fail precisely because you can’t pump and dump the shares. You can pump them alright, but once you get Kobe up to $50, you still have to find someone willing to buy that baseball card off of you for $50. With real stocks, when one gets pumped, other people think “hey, maybe this share will have some actual value that I don’t know about, and that’s what’s causing it to rise.”
this is pretty funny, because a friend of mine actually wrote to michael on facebook telling him to post about this obvious ponzi scheme…and he still missed calling it what it is.
the last two guys have it exactly right. this will not be big, in fact it’s blatantly illegal. think of it this way: imagine you own the “market” portfolio, or an S&P500 of the oneseason market. now, imagine they stop taking new money. that means that every time someone gets paid out, the rest of the league’s value drops. so, the only way for the market to make money is for more people to come in…for absolutely no reason “demanding” these virtual goods which do not confer benefits or save time, like items on Diablo, nor do they even confer some psychic or social value like facebook gifts.
i could go on for literally pages about how inane this is, and how i’m even more stunned that Arrington bought it, but i have baseball to watch so i’ll stop here.
Without any underlying assets I think this could be just full of abuse.
How they are getting away without using an MLBPA, NFLPA, etc license, to use such athletes in this manner? A ‘little’ detail that seems to been have left out.
A ponzie or pyramid requires new money to pay its obligations. This site has a value equal to its price. Therefore it is not a pyramid or a ponzi. It is exactly like the NYSE or NASDAQ. IF you believe you own anything more there than you do here you are niave and foolish. How much are shares of Fannie Mae, Freddie Mac, Lehmans, etc.. worth vs 2 months ago. The only difference is Warren Buffet and other inside traders dont rig the game and steal your money here.
This is lame. You should instead sent your money to me at http://www.YouA...urMoneyToMe.com.
TechCrunch seems to be on a downhill slide of late. Please stop, bring back the real Arrington.
This is interesting but I see potential red flags. Price manipulation when an asset is not liquid and huge volatility. Coult be big but will require a lot of work, potential for a lot of lawsuits.
I have read about every article (and comment) that has come out on OneSeason since Wednesday’s launch and its getting a lot more good press than bad. If you all do a little research you will find out that these guys really did their homework in the legal department. 2nd life is legal and so are the facebook gifts. Value is created by the market and simple supply and demand. I’ve been trading since the site launched and its pretty sweet and I’m not even into fantasy sports. Sports fans and traders check it out!
It would be nice to have a OneSeason for tech startups.
great idea!
Wow, I’m amazed at the negative comments out there. I have been “investing” at oneseason.com since its Wednesday launch and find it to be exactly like the real stock market exchange. You take risks by buying shares. It has the same potential to crash, like the real stock market, if all investors panic and try to pull out their money at once. Nobody actually thinks that they own a real part of the athlete. If you don’t like the concept, don’t invest.
Securities laws are really complicated. But, ultimately, they are meant to protect you, the investor. Megan, for example, doesn’t know that the companies on the real stock exchanges are under intense scrutiny and have to file insane amounts of paperwork like annual reports and such. They are forced to do this so that the investors have a full understanding of what they’re buying. In other words, OneSeason is not “exactly like the real stock market.” Everything on the stock market is a “registered” security, which means it’s highly regulated and there’s tons of disclosure. That’s not the case here.
Actually, I’m pretty sure Megan works at the company because her comment is just too perfect. But anyway, under Megan’s logic, the definition of a legal security is any investment on which you could lose all your money. But, of course, that’s not actually how we determine whether an investment instrument is legal. It also does not matter whether the investors think they own a real part of the athlete.
Honestly, Megan is a really good example of why we need these laws, and why they should apply to OneSeason. It’s because Megan needs some protection when she invests. This site is letting Megan risk her money on investments she doesn’t really understand. There are lots of scams out there.
Mike – Have you ever heard of second life? Also, if you take the time to read the faq’s (you should probably do that) you will see that they have a security system set in place – a “team” manually monitors suspicious activity and an they have implemented a fraud algorithm to flag and prevent suspicious behavior.
I have done my research and I am a believer. Besides it’s not like I have invested my life savings. I approach it the same way as the stock market. Don’t invest what you can’t lose and you will be fine. It’s fun and way more exciting than fantasy. It is interesting to see how much emotion this company is getting out of people though. They must be doing something right..
If anybody wants to buy shares of OJ, please email me at ojsimpson@clarkcountyprisons.gov. Offering shares at below market value.
I recently opened an account in oneseason.com with a credit card. I’m loving it. I don’t do fantasy sports, but this I can handle. And it’s way more fun and interesting than my stock market investments. It sounds like the company really understands the target market and it’s just a matter of time before this grows in scale. It’s good to see some skeptics…and I hope they continue to do some more research as many of us have done before joining.
I signed up for a OneSeason account earlier and I’ve already made more than $350. It’s so easy to use and my wife really likes it too. I lost $50,000 in the stock market last week but OneSeason doesn’t have any of the stupid hedge funds there to take my money so it seems like a good, safe thing. I would definitely recommend that everyone sign up and start trading. It’s really fun and like I said, I already made $350!
Welcome to the club everyone. I won $5000 in my first week on http://www.oneseason.com. It’s like the NASDAQ but with athletes. I know a lot about sports so I am doing really good and plan to invest a lot more very soon and will reinvest my winnings too.
This is definitely not illegals. It is all legitimate because I got the money I won no problem. Everyone should get in real soon to not miss out!
okay, this is just a lie. they only do cashouts monthly, so you could not have gotten your money until 10/31.
When I sent them a question regarding cashout they responded by saying it takes about 30 days before you are a seasoned user in an effort to protect you. Your first check will come 30 days after signup. After the initial 30 day period your check will come within 2 days of request. Seems reasonable to me, but then again I have done my research.. I prefer not to guess.
Oneseason is a really cool site. Its not meant to replace the stock market, or give you a chance to own an underlying asset; its a virtual goods market and its meant to be fun! Just like people pay for virtual couches on Second Life. I’m pretty sure they know they don’t actually own a couch somewhere.
Am I putting my retirement money in here? NO. The real money in here makes you care more about it and think about what you are doing. This is a way for sports fans to participate in a game that is directly related to something they are passionate about.
Bottom Line: I like the site and will continue to use it. I am having fun.
How do these IPO’s work? Where does the money “raised” from the IPO go?
The problem I see is that there isn’t a payout to drive the value up, only demand. With gambling sites like WSEX, they have an active market to buy and sell teams, American Idol contestants, etc. but the value is driven directly by performance because each winning share has a legitimate value.
This is definitely a pyramid scheme because eventually the user base will stop growing. Once it stops growing, the ability to easily make money will go away and people will begin dropping out. What happens when nobody is buying? The price of the stock goes to zero and what happens to all of the money? There is no underlying value. If they took the IPO money, put it in a money market, and backed the value of the stock with that, it would be a much more attractive system. Instead they have these fantasy values that are ripe for fraud.
I actually don’t see how any of this is even legal. They might stick around for a while and make money but they’ll end up in prison and shut down eventually. Maybe all the IPO money can go to AIG.
Not sure you all understand the definition of a pyramid scheme but just b/c there isn’t a company behind the stock does not make Oneseason one. With a company behind your stock on the NYSE you can still end up with a stock that is worthless. Second life is a great comparison for how the value is created. I am not sure why the user base would stop growing either… I doubt the fantasy sports user based has stopped growing since it started.
I think the easy argument to your point of view is the success of a company like Second Life. How is the value and pricing structure of virtual real estate any different than that of virtual shares (or SOI’s as they call them) on Oneseason? There is nothing driving these “investments” on Second Life other than buyer’s and seller’s perception of value within their marketplace. This is a very similar concept. Jail time? Definitely sounds extreme.. Think this is meant to be fun. Had no idea there were so many sheriffs in town..
I was very curious how they avoid being classed as gambling (and therefore illegal under the Unlawful Gaming and Wire Transfer acts). The key line in the FAQs is this:
Is OneSeason a gambling site?
Absolutely not. OneSeason is a free market system that trades in perpetuity with no definable outcome, end event or odds. Users achieve market based returns solely on their skill trading SOI’s and access numerous features for their enjoyment and entertainment.
Therefore OneSeason is a skills based game like WorldWinner or King. The major concern I would have is how real world events drive prices. With stocks the price is influenced by company performance because ultimately the price is derived from expected future dividends. With SOI’s there is no way real world event that directly drives prices, therefore their value is solely based on trader’s belief that they will increase in value.
If the current financial crisis doesn’t indicate that that is dangerous then I expect you and your money will soon part company!
It is not gambling b/t it is not based on chance, its based on skill. Check out the recent WSJ article- a former prosecutor explains how its not classified as gambling.
http://online.w...eTabs%3Darticle
Monday night football affected Reggie Bush’s price… right after the game he was trading higher. It was pretty cool to see. That is one example of how real world events will affect pricing. Not to mention the share price of a company doesn’t always necessarily reflect how well the company is doing, market perception of how the company is doing plays a major role. Just like market perception of how a player will do affects the SOI price of that player.
Not sure who this other Jackson guy is but I think the guys at Protrade — including Mark — have a much better understanding of this market than OneSeason. My understanding of ProTrade is that they have a very loyal base, but surprise… a sports marketplace is a subset of the fantasy sports market. A niche within a niche. Now, OneSeason is going to take a small chunk of ProTrade’s market by catering to the people that are crazy enough to risk real money on something with no asset value? Forget it. If you want to bet on sports… do it the old fashioned way and bet your co-workers. You’ll make money and be able to make fun of them in the office. Someone needs to do something cool in sports but I don’t think OneSeason is it.
I won’t throw any more mud because it’s hard enough just to get something like this off the ground. Good luck.
I am a user at oneseason and protrade both. I used to be an active user on protrade but lost interest for obvious reason… It’s just not that exciting to win “fake” $. It’s so exciting to see a new company really pull this concept together. Oneseason has literally changed the way I live my day, I cannot get away from my computer. Forget making fun of my co-wrokers through betting. I am in touch with my best friends and guys I watch the games with through the social networking provided on oneseason. Why would I want to razz the guy who doesn’t brush his teeth at the cubicle next to me when I can mess with my core group of best friends?
I just did an alexa comparison between protrade and oneseason and in only 11 days oneseason has already caught up to them in web traffic. I know people don’t like change, but I think this one is inevitable.. the tide has already turned from what I have seen. Oneseason’s free market is thriving too and acting like a real marketplace. Romo took a dip when announced that he broke his thumb yesterday, but he’s on his way back up as he is a good buy now. This is what I have always hoped for and it is here and accessible. Sorry guys, but I think there is no question that oneseason is here to stay.
Hello,
I have gone through everything from everyone.
Kindly answer me to my points
1.Has oneseason been decalred legal in US?
2.If Yes ,will the money earned be taxed???
3.What is that one thing that I can trust bfore I can sart asking close frinds of mine to play around,
Udal
To answer at least your second question, I have heard from others who have tried to withdraw cash that if you withdraw more than $600 than your initial investment, you will be sent a W-9 form along with your check for tax purposes. So, in short, if you are successful enough, yes you will be taxed.
how much are you up to mark????
I’m up over 4000 off of my 130 investment.
Ponzi Scheme… look it up… then look at OneSeason and tell me what you think?
The funny part about OneSeason is that they actually speed up the process of the eventual crash by taking out 1% of every trade! Yes they are actually taking cash out of their market and once that equals or out paces the cash injection (new users) the market will slide and crash into its impending doom.
Do yourself a favor… if you have any money at all in OneSeason—- CASH OUT WHILE YOU CAN! You’ll thank me, and the other posters who have brains above, later.
SIGN UP, DEPOSIT, AND BUY ASAP!! Greatest site ever!
real money for this stuff? seems retarded. in this economy who’s going to blow their hard earned money on some fake athlete stock market? at least protrade uses fake money so it’s at least fun and doesn’t hit you in the wallet. i’d rather spend my real money on gas or food!
One season appears to be a BUNCH of Cons. They had it calculated so that a lot of people would invest possibly a million dollars, but only the people who joined on day one could get out 30 days later. They have screwed everyone who invested a week in this or later out of their total investment. A bunch of chicken shits is my opinion.
Supposedly I have a check being processed for me and then being sent in the mail… but even if I get the check, will it clear? LOL at this whole thing. I’m just glad I have only about fifty bucks at stake; I’d be crapping my pants if it involved ‘living-on’ money. My sense, when I first joined on Nov 1st, was that Oneseason was, if not a way to make an easy buck, an extremely entertaining business lesson on market dynamics and social psychology.
I don’t think the creators of the site intended for it to work like a ponzi scheme, but that’s how it turned out to be in that the early investors received a high rate of return which can only be sustained when new people keep investing money. Most people on the site, including myself realize this which is probably why people on the site who already have money invested are constantly trying to promote it to new people with explanations that are irrational and usually wrong(i.e. all the “market experts” who make forecasts and predictions as if they’re real economists). The fact of the matter is that these “SOI’s” have no intrinsic value to them because they’re value can’t be tied to the performance of an athlete, whereas the value of real stocks can be directly linked to profits and performances of a company. There are no incentives of shares tied to the performance of the athletes and the value is based solely on the perception by market participants on whether they think others in the market will buy or sell at a given price. It doesn’t matter who the athlete is or how they do. For all intents and purposes, it could be ABC or XYZ instead of KOBE or LEBRON. Eventually this market will go to it’s true value which is whatever the original amount that was invested and considering how it’s pretty much a zero sum game, a lot of early investors have already cashed out checks in the 5 figure range, there probably isn’t a lot of “real” money in it anymore unless of course more people throw money into the pool, which isn’t likely to happen given the epic collapse or the market.
The moment I knew this site was evil was when I realized that I couldn’t very well recommend it to my friends, because I would essentially only be asking them to buy my worthless SOIs. Taking money from their wallet, placing it in mine. Seemed like stealing to me; and you don’t steal from your friends.
Ocurred to me further, you don’t steal from strangers either.
Yet that’s exactly what hundreds of people did – they signed up to message boards they’d never frequented before, just to innocently tell strangers about this great money making opportunity.
How much did you sell your innocence for? What was it worth to you?
This site has only continued to improve in my opinion, and lets not forget how young it still is. Time will tell my friends.