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ESPN senior NFL insider Adam Schefter is one of several high-profile names to cash in from an early investment in Underdog.
The fantasy sports and prediction market operator has been sold to U.K.-headquartered online trading firm IG Group for up to $2.15 billion in total consideration. That total comes from $1.1 billion IG Group is paying upfront, a $200 million earnout payable to Underdog shareholders, and up to $850 million that could go to “eligible Underdog employees” depending on the company’s future performance.
Schefter—who recently signed a new long-term deal with ESPN—was part of a group of investors that raised $10 million for Underdog in 2021. Other contributors at the time included Mark Cuban, Kevin Durant, and Jared Goff.
“Underdog confirms Schefter was an early-stage investor,” an Underdog spokesperson tells Front Office Sports. ESPN declined to comment.
Sources say that the NFL insider’s investment in the company was a “small investment.” He hasn’t made any further investments or had any role with Underdog or the company’s operations since then.
In July 2022, Underdog was valued at $485 million, after raising $35 million in Series B funding. While specific details of Schefter’s contribution are unknown, based on the 2022 valuation and the sale number, it is likely that his investment at least tripled.
Around the time of his investment in Underdog, Schefter also backed Boom Entertainment, a company that creates sports and casino gambling apps. It is unknown whether the insider still holds a stake in the company.
FOS deals reporter Ben Horney contributed reporting for this story.
