Jordan's Addition To DraftKings Adds To Company's Profile

Jordan's media profile will help DraftKings grab market share in states that open up to online bettingNBAE/GETTY IMAGES

Michael Jordan's addition to DraftKings brings the company “so much street cred” and will be “very important going forward as the competition continues to rise” in the betting/fantasy space, according to CNBC’s Pete Najarian (“Fast Money Halftime,” CNBC, 9/2). CNBC’s Brian Sullivan noted the deal is a “big move by Jordan, but probably a bigger move by DraftKings.” Sullivan: “They get the name recognition and a business genius, as well as a basketball owner.” CNBC’s Jabari Young noted the deal was “something that was in the works for a while.” Jordan is not the first pro sports owner to partner with DraftKings, but his name “is what’s going to drive this” (“Squawk Box,” CNBC, 9/2). In N.Y., Andrew Ross Sorkin notes Jordan’s “enormous media profile will help DraftKings grab market share in states that open up to online betting.” Meanwhile, Jordan’s “equity stake will motivate him to hustle for it.” His “first priority” could be Illinois, which earlier this year allowed sports betting (DealBook, 9/3). However, Truist Securities Analyst Barry Jonas said Jordan joining DraftKings is a “positive, but I'd be hard pressed to say game-changer.” Jonas: “He’s not on the board, he’s not a sponsor. He’s a special advisor to the board. There are regulatory limitations that could influence how impactful he could be here” (“Closing Bell,” CNBC, 9/2).

NO CONFLICTS WITH NBA: The N.Y. Times’ Sorkin notes there have been questions about Jordan’s “checkered gambling history and potential conflicts” since he owns the Hornets. However, attorneys indicated that they “did not see either as an issue” and added that “other team owners are allowed to invest in gambling ventures” (DealBook, 9/3). CNBC’s Tyler Mathisen said the NBA "has been early in embracing the idea that sports betting is an inevitability" in the U.S. However, he asked, “I wonder how much they would like it if one of their own, arguably the greatest NBA player of all-time and an owner of a team, becomes a little too associated with fundamentally a gambling company?” CNBC’s Steve Weiss said, “He’s a smart guy, so I would say he spoke to the NBA and got Adam Silver’s permission to do it” (“Fast Money Halftime,” CNBC, 9/2). Meanwhile, CNBC’s Kelly Evans said this deal “shows how mainstream gambling has gone.” It used to be “something that was whispered about, and now it’s the leading news story in the business world” (“The Exchange,” CNBC, 9/2).

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