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By Pat Evans
Michael Jordan has joined DraftKings as a special advisor to the board of directors, receiving an equity stake in the process.
In the role, Jordan will provide “guidance and strategic advice” to the board, including on topics such as product development, diversity, equity and marketing activities. Financial terms of the deal were not disclosed.
“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur,” DraftKings co-founder and Chief Executive Officer Jason Robins said in a statement. “The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team.”
The position starts immediately. Jordan, the majority owner of the Charlotte Hornets, is an NBA Hall of Famer and six-time NBA Finals MVP.
Shares of the Boston-based daily fantasy sports and betting operator jumped 4% in the morning after the news on Sep. 2.
DraftKings went public in April and has gained more than 110% since it hit the stock market.
The company reported a strong second quarter last month, with $71 million in revenue compared to $57 million in the same quarter in 2019. A strong projected finish to the year didn’t prevent Morgan Stanley from downgrading the company from a buy to hold following the report.
The downgrade — along with Penn National Gaming — came because both companies have been soaring throughout the year, despite a near complete shutdown of sports because of the COVID-19 pandemic.
Other analysts, including Northland Securities, have stayed bullish about the company.
DraftKings has continued to climb. Jordan taking a role with the company only further amplifies the optimism around the company and the sports betting industry.
