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DraftKings Board Welcomes NBA Legend Michael Jordan as Special Adviser
By Jeff Osienya Sep 02, 2020 IndustryThe DraftKings board of directors has added former pro basketballer Michael Jordan as a special advisor in exchange for an undisclosed amount of equity stake in the company. Jordan will provide guidance and strategic advice to the board.On Wednesday, DraftKings, the Nasdaq listed sports betting and fantasy sports giant announced that basketball legend and Hall-of-Famer Michael Jordan would be joining the ranks of the company board of directors as a special adviser.
In a press release, DraftKings disclosed that the former Chicago Bulls superstar will offer the board of directors strategic and creative input across different company undertakings such as marketing activities, equity and belonging, diversity, and product development among other crucial company initiatives.
DraftKings Shares Soar After the Announcement
While the size of equity interest that Jordan will receive from this arrangement wasn’t revealed, the CEO and co-founder of DraftKings, Jason Robins proudly welcomed him in a statement by saying;
Quote“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur … The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team.”
The deal sent DraftKings shares shooting to highs of 12% to $41 per share on Wednesday before finally settling to a gain of 4%. This year seems to be a remarkable year for DraftKings as the sportsbook guru continues to make one big boy move after another to dominate the industry further. After the company went public in April through a reverse merger acquisition with a SPAC, its shares jumped by a whopping 256% so far in 2020.
Another Winning Streak for Jordan
Jordan is the majority owner of Charlotte Hornets of the NBA, and he is also the chair of the Hornets Sports and Entertainment – the ownership group behind his team. However, his interest in DraftKings isn’t expected to affect the presence of the Hornets team on the DraftKings sportsbook. An NBA spokesperson clarified that;
Quote“NBA team investors, including governors, are permitted to have involvement with sports betting and fantasy sports businesses, subject to safeguards required under league rules to prevent actual or perceived conflicts of interest.”
Michael Jordan is notoriously known to be an avid gambler, a subject that he even talked about at length in ‘The Last Dance’ a highly acclaimed Netflix documentary that was co-produced with ESPN. In Episode six of the hit documentary, he detailed some of his famed gambling escapades, including his trip to an Atlantic City casino halfway through the Eastern Conference Finals of 1993 against the New York Knicks. Thus, with his reputation as a gambler, the former athlete will be a valuable addition to the DraftKings team in his capacity as special counsel to the company board.
As of May 2020, Forbes ranks Jordan’s net worth of $2.1 billion as of May 2020 owing to his highly successful deals with fortune 500 brands including Nike, Coca-Cola, and Chevrolet. His streak as America’s top commercial pitchman has earned him tens of billions of dollars and to date, he still pitches Upper Deck, Gatorade, Hanes, and Nike, over a decade after he officially retired from basketball back in 1998.
This will not be the first time that Jordan, a five-time MVP and six-time NBA Championships winner has invested in a gaming company. In 2015, together with fellow owners of the NBA; Mark Cuban of the Dallas Mavericks, and Ted Leonsis of the Washington Wizards, Jordan invested in Sportradar, a global leader in providing content and data to bookmakers, sports federations, and media companies.
Other notable figures or entities that hold stakes in DraftKings include the Walt Disney Company, and NFL owners, Robert Kraft, of New England Patriots, and Jerry Jones of the Dallas Cowboys.
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