Michael Jordan Gets Stake in DraftKings for Advisory Role

By Matt Ott

DraftKings shares jumped in midday trading after announcing that basketball legend Michael Jordan would take an ownership stake in the company in exchange for becoming a special adviser to the sports betting site.

Boston-based DraftKings did not release details on the amount of Jordan's stake in the company. Jordan is the majority owner of the NBA's Charlotte Hornets and the deal has the league's approval.

"NBA team investors, including governors, are permitted to have involvement with sports betting and fantasy sports businesses, subject to safeguards required under league rules to prevent actual or perceived conflicts of interest," an NBA spokesperson said Wednesday.

Jordan's interest in DraftKings is not expected to affect the Hornets' presence on the site.

The NBA agreed to a multiyear deal about a year ago to make DraftKings an official sports betting operator. The NBA has several similar arrangements, including one with DraftKings' longtime daily fantasy sports rival FanDuel, and struck a first-of-its-kind deal with MGM Resorts International in 2018 to be compensated for providing official data as a way for those casinos to determine outcomes of various bets.

That differs from the way Golden Nugget casinos, owned by Houston Rockets owner Tilman Fertitta, are permitted to handle games involving his NBA club. Golden Nugget sports books in Nevada, New Jersey, and Mississippi can accept NBA wagers, but cannot for games involving the Rockets.

Jordan has made no secret of his affinity for gambling, whether playing blackjack in casinos or making bets during a round of golf. As a player for the Chicago Bulls, Jordan famously went to Atlantic City in between games of the 1993 Eastern Conference finals against the New York Knicks, revealing details of the trip in "The Last Dance" docuseries released earlier this year by ESPN and Netflix. Jordan also said he never bet on NBA games.

DraftKings said Jordan would immediately "provide strategic and creative input to the board of directors on company strategy, product development, inclusion, equity and belonging, marketing activities and other key initiatives."

After jumping about 10 percent at the market open, shares in DraftKings were up about 1 percent in midday trading.

—

AP Basketball Writer Tim Reynolds in Lake Buena Vista, Florida contributed to this story.

More In Business

Big Business This Week: Those On-Again, Off-Again Tariffs!

No one's happy about anything this week, it seems, not even lumberjacks, Gen Z music fans, and Goldman Sachs VPs.

You may want to jump off Wall Street’s wild ride, but markets do this

Much like all the upheaval shaking the world, the huge swings rocking Wall Street may feel far from normal. But, for investing at least, this is normal.

Trump Grants One-Month Exemption for US Automakers from New Tariffs

President Donald Trump is granting a one-month exemption on his stiff new tariffs on imports from Mexico and Canada for U.S. automakers.

Big Business This Week: Fear, Greed, and Eggs

Who's being chicken about eggs? Plus, cable's last(?) stand, quantum competition, and crypto crime.

Starbucks lays off 1,100 corporate employees as coffee chain streamlines

Starbucks plans to lay off 1,100 corporate employees globally as new Chairman and CEO Brian Niccol streamlines operations.

IRS Layoffs Could Hurt Revenue Collection and Aid Tax Dodgers

Experts say the layoffs of roughly 7,000 IRS probationary workers likely mean the end of the agency’s plans to go after tax dodgers.

Big Business This Week: Guess Who’s Back? Inflation!

President Trump said so! Plus, delivery app duels, Southwest's executive nosedive, and the truth behind Truth Social.

How Dream Exchange Is Serving Underserved and Minority Markets

Joe Cecela, Dream Exchange CEO, explains how they are aiming to form the first minority-controlled company to operate an exchange in U.S. history. Watch!

All Survive As Delta Jet Flips Upside Down on a Snowy Toronto Runway

A Delta Air Lines plane has flipped upon arrival at Toronto’s Pearson Airport and ended up on its roof, injuring 18 people.

Michigan Judge Sentences Walmart Shoplifters to Wash Parking Lot Cars

A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.

Load More