HOUSTON -- Astros pitcher Collin McHugh, whose 28 wins since Aug. 1, 2014, rank second in the Majors in that time span behind only Jake Arrieta (30), has entered into a $3.96 million brand contract with Fantex, which will receive 10 percent of McHugh's future earnings on and off the field.
In the future, Fantex expects to sell shares of McHugh's "stock" to public investors. In this case, those investors will see a profit if McHugh earns more than $39.6 million in his career. Major League Baseball and the MLB Players Association each have approved agreements like this in the past.
McHugh declined to discuss the deal following Wednesday's game in Seattle, citing a confidentiality agreement.
McHugh, 28, isn't eligible to reach arbitration until 2017, which means he's still making slightly over the Major League minimum of $507,500. The deal gives him a financial windfall before he's eligible to sign his first sizable contract.
Fantex announced brand contracts with 10 professional athletes, including five baseball players: McHugh, Tyler Duffey (Twins), Maikel Franco (Phillies), Jonathan Schoop (Orioles) and Yangervis Solarte (Padres).
Last September, Fantex agreed to a similar deal with Angels rookie Andrew Heaney that was worth $3.34 million up front to Heaney in exchange for receiving 10 percent of all Heaney's future earnings, and all future earnings tied to his brand.