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DraftKings Scores Multiyear Extension to Major League Baseball Deal

By Eric Volkman – Aug 10, 2020 at 8:08AM

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This isn't the first expansion to an existing deal that the company has secured lately.

Already benefiting from the recent return of top professional sports, DraftKings (DKNG -3.85%) has received another boost from the pro ranks. The company has announced that it signed a multiyear expansion of its existing partnership with Major League Baseball (MLB).

Under the terms of the arrangement, DraftKings will stay in its current position as MLB's exclusive daily fantasy sports partner. The company said the deal will also widen its content rights regarding the use of MLB photos, logos, and video within DraftKings fantasy baseball games.

A baseball player hitting a ball.

Image source: Getty Images.

"Fans who engage with the dozens of MLB offerings from DraftKings will see the expanded partnership enables new and exclusive content surrounding each game throughout the regular season and postseason games, including innovative product integrations on MLB platforms that will provide new methods of engagement for fantasy and baseball fans alike," the company wrote in its announcement.

DraftKings did not provide the terms of either the base MLB partnership, or the extension.

This year, operating under the ever-present threat of the coronavirus outbreak, like other sports, MLB teams are playing an extremely truncated season. This consists of only 60 games instead of the usual 162.

DraftKings has clear ambitions to reach official-partner status with the top sports leagues. Last month, it announced an extension similar to that of its MLB arrangement with golf's PGA Tour. Under that modification, the company now has the official designation of "Official Betting Operator of the PGA Tour."

The widened MLB deal will provide DraftKings with some positive momentum going into earnings; the company is slated to report its Q2 results this Friday. So far this year, DraftKings' stock has been a standout, rising almost 220% since the start of January and thus trouncing the S&P 500.

 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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