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DraftKings jumps after adding NBA legend Michael Jordan as an investor and advisor

Michael Jordan was awarded the Presidential Medal of Freedom in November 2016.

Chip Somodevilla / Getty Images

Shares in DraftKings rose Wednesday after the company added basketball legend Michael Jordan as an advisor to the company.

DraftKings shares DKNG,
+ 8.04%
rose as much as 12%, before settling on a 4% gain, as said Jordan, who has won six titles with the Chicago Bulls and is chairman of the owner of Charlotte Hornets Hornets Sports & Entertainment, will take a stake in exchange providing guidance and strategic advice to the board.

Jordan’s contribution to the board will cover the areas of business strategy, product development, diversity, equity and belonging, marketing and other initiatives, said the Boston-based sports gambling operator and sports site. fantasy.

Shares of DraftKings have soared since they went public thanks to a merger with a blank controlling company. Shares of DraftKings rose 256% in 2020.

Jordan is known for being an avid gambler, a topic he discussed in this year’s hit documentary “The Last Dance”, a co-production of ESPN DIS,
+ 1.37%
and Netflix NFLX,
-0.66%.

Forbes valued Jordan’s net worth at $ 2.1 billion in May, calling him the richest former athlete in the world, who still has endorsement deals with companies including Nike NKE.
+ 1.70%
while serving as the majority owner of the Hornets franchise.

DraftKings did not disclose the size of Jordan’s stake. According to FactSet, its main shareholder is Shalom Meckenzie, whose SBTech has merged with DraftKings as part of the deal that brings the company to the public market, and ESPN owner Walt Disney holds a 6% stake.

A number of sports franchise owners also hold stakes in the company, including Dallas Cowboys owner Jerry Jones and New England Patriots owner Robert Kraft.

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