- Fox Corporation and Flutter Entertainment’s legal dispute has continued.
- Fox has threatened to pull all FanDuel promotion from its media outlets.
- Fox is the second-largest sports broadcast network in the country.
NEW YORK – Fox Corporation and Flutter Entertainment have continued their legal dispute over the cost of FanDuel shares that Fox Corp. is expected to pay.
While Fox argues of an agreed price point that Flutter was able to purchase shares at in December 2020, Flutter argues Fox should be paying a fair market price.
Fox has now threatened to pull all FanDuel promotions from its media outlets, which would be a major promotional blow to the legal sports betting company as Fox is the second-largest sports broadcast network in the country.
Fox Plays Hardball
Flutter Entertainment has so far been dismissive of the Fox lawsuit, publicly claiming Fox has no basis for its legal issue. This has now led to Fox pushing back even harder, threatening to pull FanDuel from Fox programs.
“We gave Fox the option to acquire a stake in the business in July 2021 at fair market value, and we continue to provide them with that option, and we will be in dialogue with them to see whether they’re interested in pursuing it or not,” said Peter Jackson, Flutter Chief Executive.
FanDuel sits comfortably as the largest sports betting operator in the country, holding a solid third of the entire market, and is either the number one or number two sportsbook in every state with legal sports betting that it operates in.
A large reasoning for FanDuel’s dominance is brand recognition, mainly brought on by its media affiliates such as Fox Sports.
Fox Sports is the second sports media company only to ESPN in the country, so FanDuel definitely benefits from its odds being promoted on the networks major programs like First Things First, The Herd with Colin Cowherd, and Speak For Yourself.
These major programs suddenly no longer promoting FanDuel will be a major hit on brand recognition. This threat is strong enough to make Flutter take the lawsuit more seriously.
“Fox Corporation has filed suit against Flutter to enforce its rights to acquire an 18.6% ownership interest in FanDuel Group — an American sports betting brand — for the same price that Flutter paid for that interest in December 2020,” said a Fox spokesperson. “The suit was filed as an arbitration before JAMS in New York, NY by consent of the parties.”
Fox’s lawsuit against Flutter Entertainment was filed at the Judicial Arbitration and Mediation Services, or JAMS court in New York. This court specializes in dealing with contract violations between major companies.
Coming from a background in narrative-based writing, Giovanni strives to write stories that will keep the reader engaged. Although he does pride himself in being accurate, how the story is told is also very important to him. When he’s not keeping readers up to date on sports betting laws and legislation, you can find him writing and recording music, playing videogames, or engaged in heated sports debates with his friends.