“You’re not using any real cash, and we’re not regulated by any US government body,” said Kerns.  “In general over 20 million Americans already have a vested interest in the performance of athletes (via fantasy sports leagues).”  Kerns said his site sees between 50,000 and 100,000 trades per day.  

The discussion turned to the idea that ProTrade might one day become a legitimate form of trading.  Dylan Radigan, CNBC anchor, said, “(In terms of) actually buying shares of an 11-year-old who I think is going to be a pro baseball player, is that something that’s being discussed?”

“This will never happen,” said CNBC Sports Business Reporter Darren Rovell.  “One, because that 11-year-old’s parents will never trade away that equity.  Part of it is the dream to be a professional athlete, and part of it is the dream to make that money.  And it’s just not worth enough money.  Yeah, pro sports contracts are worth a lot, but the top athlete is going to make $500 million over the course of their 20-year career.  What’s the market cap for that?”

Kerns disagreed.  “When people trade the prices of weather derivatives or the value of gold, it has nothing to do with how much gold, as an instrument, will actually be earning.  The reality is that insurance companies, endorsement companies, broadcast rights holders, and franchise owners have billions of dollars worth of value in wins and losses tied to their teams and athletes, and they should have a financial instrument where they have the ability to hedge against that.”

CNBC’s Economist and Chief Commentator Bill Seidman weighed in: “This is like betting on horses.  It won’t be real until the athletes actually give up a part of their future earnings.  Then you’ll have a market you can gamble on, but isn’t tied to the real economy.”

Um, Mr. Pujols sir, do you think it would be all right if I owned 10% of your future?

It sure sounds fun, though.

Scott Goldberg