Travis Kelce Invests in Sleep Number: Details

National Football League star Travis Kelce is taking a stake in Sleep Number in a partnership that will make him a key shareholder and ambassador for the mattress maker as the company seeks to attract new customers, the company announced.

The company said the partnership, first revealed by Reuters, will give Kelce a less than 5 percent stake in the company and will feature the iconic Kansas City Chiefs tight end in its national advertising campaigns for the next three years.

Kelce is purchasing a portion of the stock himself and also receives additional restricted stock that will vest over three years as part of the deal, Sleep Number reported. The exact breakdown, as well as the precise size or value of the stake, have not been disclosed.

Co-host of the popular podcast “New Heights,” Kelce has been sleeping on a Sleep Number bed since 2019. He has been promoting the brand’s products publicly since at least 2020, posting a photo of himself on social media sleeping on a Sleep Number 360 smart bed.

It’s the three-time Super Bowl champion’s latest investment in a public company, having acquired shares in theme park chain Six Flags Entertainment last year.

Kelce’s investments carry more weight than most NFL players thanks to his engagement to singer Taylor Swift, making him a household name.

Shares of Six Flags jumped 18% after the announcement of the arrival of Kelce alongside the activist fund Jana Partners in the company’s capital in October.

In a statement, Kelce said he had been sleeping on a Sleep Number bed for several years and becoming an investor seemed like a “natural step.”

“This partnership reflects my confidence in the direction the company is taking and the growing opportunity around sleep,” he said.

A NEW GENERAL DIRECTOR TO RELAUNCH GROWTH

Sleep Number, which ended Tuesday at $10.30 per share for a market capitalization of $235 million, is undergoing a transformation under new CEO Linda Findley, who took over in April after holding senior positions at Blue Apron and Etsy.

She launched the “Sleep Number Shifts” campaign to renew marketing, reach new customers and regain growth. The company’s sales are declining due to a reduction in consumer spending on major purchases and an increased competitive environment.

“Travis’ passion for the health benefits of sleep, combined with his business acumen, will be a true catalyst for our development as we continue to tell our story and attract a new generation of consumers to the brand,” Findley said in a statement.

Kelce has also invested in several private consumer sector companies, including beer brand Garage Beer and tequila soda maker Casa Azul.