- DraftKings is now doing business with NBA Hall of Fame member Michael Jordan as he officially joined the company’s Board of Directors as a special advisor.
- Since news broke late Tuesday, the stock price of the sports betting conglomerate has seen a surge which has continued to rise going into Wednesday.
BOSTON – The Board of Directors for DraftKings just got a special advisor in former NBA star Michael Jordan and news of the deal has already spiked shares in the company by 16%.
Jordan is an NBA Hall of Famer as well as the current owner and chairman of the Charlotte Hornets organization. Adding to that list is the fact that the star is widely known in the sports betting community as an avid gambler himself.
“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur,” said Jason Robins, DraftKings co-founder and CEO. “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 Between Jordan And DraftKings
What does Jordan stand to gain from the deal made with DraftKings? Equity in the company.
A company that is not only at the top of their sports betting game but has goals to reach further heights of prosperity in the industry. As popularity around sports gambling continues to grow, Jordan will have a piece of that action as a board advisor.
The big named athlete of the ages will provide DraftKings with his take on various business strategies that would help to attract more sports bettors as Jordan is a famous one himself.
It is his experience as an athlete and gambler of the games that give him the knowledge of what bettors want to see out of their sportsbook.
He will offer help in the development, marketing, and initiatives that DraftKings rolls out in all future endeavors as the announcement of his joining the board put his status as a member into immediate effect.
The Stock Price Spike Of DraftKings
As legal sports betting continues to sweep the nation, DraftKings has been making moves across the board to make their company as lucrative as possible.
In April, they went public where the company is known as DKNG and many investors took notice with immediate purchases.
But during a time with the Coronavirus Pandemic, the sports wagering industry was not seen as the best investment unless those buying were in it for the long game.
It seems with the return of sports, and now this new deal with Michael Jordan, shows DraftKings is starting to see a return in dividends for those with shares in the company. They closed out the market on Tuesday at $36.93 a share which was a 240% jump after the news of Jordan joining the DraftKings team broke.
As of Wednesday morning, the stock price for the company is at $39.81 a share. As always, DraftKings continues to take the “Kings” in their name quite literally with every new venture they tackle with their business.
Christina has been writing for as long as she can remember and does dedicated research on the newly regulated sports betting market. She comes from a family of sports lovers that engage in friendly bets from time to time. During the winter months, you can find Christina baking cookies and beating the entire staff at Mario Kart…the N64 version of course.