DraftKings stock jumped 12% yesterday after it announced Michael Jordan would join its board of directors.
Basketball icon Michael Jordan is set to join DraftKings as a special advisor to the operator’s board of directors in exchange for an equity interest in the company.
Jordan, an NBA Hall of Fame inductee, and six-time NBA Finals Most Valuable Player is currently chairman of Hornets Sports & Entertainment which owns the NBA’s Charlotte Hornets.
Michael Jordan joins DraftKings
In his role at DraftKings, Jordan will provide DraftKings’ board with guidance and strategic advice when it comes to key initiatives such as company strategy, product development, marketing, diversity, equity and belonging.
In exchange for his role at DraftKings, Jordan will receive an equity interest in the company. DraftKings has not disclosed the value of Jordan’s equity interest.
Jason Robins, DraftKings co-founder and CEO, said: “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 NBA icon is already involved in the US sports betting market after investing in Sportradar in 2015. As a result of this, Jordan took a seat on the board of Sportradar’s US subsidiary.
Washington Wizards owner Ted Leonsis, and Dallas Mavericks owner Mark Cuban also invested in Sportradar.
Following the announcement yesterday, DraftKings’ share price jumped 12% to $41 in pre-market trading, up from an opening price of $37.
Another investor for DraftKings
Jordan will now join a number of high-profile investors in the daily fantasy sports provider turned multi-vertical gambling operator.
Disney currently hold a 6% stake in sports betting sportsbook operator and according to Bloomberg, George Soros, Jerry Jones and Robert Kraft hold shares in DraftKings.
Last month, the sportsbook operator reported a 27.1% year-on-year increase in revenue for H1 of 2020, however, net losses widened to $230.1m for the six months ending 30 June.