DraftKings Inc. recently announced that the man who many believe is the greatest basketball player ever to lace on a pair of sneakers will join its team. Michael Jordan has agreed to accept an unspecified amount of equity in the company. He will take an advisory role with the gambling and fantasy sports company and also fill a seat on the company board.
The public responded favorably to the news, and shares of Draftkings rose by six percent on the morning of the announcement.
Jordan won six NBA championship while leading the Chicago Bulls dynasty throughout the 1990s. Michael Jordan is a member of the NBA Hall of Fame and has an ownership stake in the Charlotte Hornets. He also enjoyed success as a pitchman for Hanes, Gatorade, and Nike. So much success that he continued to make billions of dollars in endorsement money long after his playing days had already ended.
The world recently gave Michael Jordan their attention again when a docuseries about him and the Bulls dynasty aired on Netflix. “The Last Dance” gained a large audience and introduced a generation of fans who know him only as an executive and businessman to Michael Jordan, the basketball player. An autographed pair of Jordan sneakers sold for more than half a million dollars a month after the docuseries debuted in April.
The partnership with DraftKings appears to be a no-brainer when you consider the experiences Jordan has with both sports and gambling. The sixth episode of the series dealt with the love Michael Jordan possessed for wagering on a variety of events. He was known to make trips to casinos, gamble on card games, and make bets with friends when he spent time on the golf course. The docuseries shows viewers the controversy that resulted from Jordan’s love of these activities while he was with the Bulls.
A spokesperson for the DraftKings brand says the company is looking forward to having Jordan on for creative and strategic advice.
Harry Sloan and Jeff Sagansky, both Hollywood executives, founded the entity that was able to take DraftKings public in the early part of 2020. The assessment of the company’s value was $3.3 billion at the time the deal became final.
The market capitalization for DraftKings increased by $800 million to $13.1 billion after it made public the addition of Jordan according to the available data.
Market analysts have demonstrated optimism regarding the U.S. market for gambling for many years. The COVID-19 pandemic has not deterred DraftKings from its course even though the cancellation of professional sporting contests and seasons has dipped into its profits. The company posted a $68 million loss over the first quarter of the year but is sure the addition of Jordan is one way to recoup some of these losses.