TOP LINE
NBA Hall of Famer Michael Jordan has signed on as a “special advisor” to the board of DraftKings, giving him an equity stake, the sports and fantasy betting company said Wednesday, increasing the company’s stock in pre-market trading.
Michael Jordan attends a press conference prior to the NBA Paris Game between Charlotte Hornets … [+]
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MAIN ASPECTS
Effective immediately, Jordan, owner of the Charlotte Hornets, known for his passion for gambling, will provide “guidance and strategic advice to the board on key business initiatives undertaken by the sports entertainment and technology company” which is was made public earlier this year, the company said in a statement, which increased its stock more than 12% before the market to $ 41.40.
“Michael Jordan is one of the most important figures in sport and culture who have forever redefined the modern athlete and entrepreneur,” said Jason Robins, co-founder and CEO of DraftKings; adding, “The strategic advice and business acumen that Michael brings to our board of directors are invaluable and I am thrilled to have him join our team.”
As a special consultant, Jordan will provide strategic and creative input to the board on business strategy, product development, inclusion, equity and membership, marketing activities and other key initiatives, the statement said.
DraftKings, which was released on April 24 with a closing price of $ 19.35, has seen its shares rise steadily throughout the spring and summer even as the coronavirus overturned professional sports; at the beginning of Wednesday it had a market cap of $ 13 billion.
Terms of the deal with DraftKings, which bills itself as “the only vertically integrated sports betting operator based in the United States”, were not disclosed; a company spokesperson declined to comment beyond the statement.
key background
With “MJ,” who played 15 seasons in the NBA, winning six championships with the Chicago Bulls, DraftKings adds a globally recognized benchmark name that is bound to attract widespread interest in the company. Unsurprisingly, Jordan lines up with a sports betting company. Stories of his high-stakes golf betting and late nights in Atlantic City abound. His passion for gambling was addressed in ESPN’s popular 1997-1988 Chicago Bulls documentary, “The Last Dance”. DraftKings announced plans to go public at the end of 2019 via a reverse merger with publicly traded shell company Diamond Eagle. As part of the deal, the company acquired sports betting technology provider, SBTech, according to media reports. At the time it went public, DraftKings was worth around $ 780 million, according to CNBC.
tangent
Last month, a pair of Jordan shoes, notable for having a shard of glass embedded in a sole from a broken backboard during a game, would have become the most expensive sneakers auctioned in history this week when they were sold for. a sky -High $ 615,000.
further reading
Michael Jordan joins DraftKings as a special advisor to the board of directors
Michael Jordan Gambling Explained: ‘I Love To Bet’ (nba">Los Angeles Times)
Record-breaking sneakers: Michael Jordan’s shoes sell for $ 615,000 (Forbes)
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