Michael Jordan is now a special advisor to the board at sports-betting company DraftKings (DKNG +0.44%). Jordan is a sports icon and an NBA legend after winning six NBA titles and numerous MVP awards in his career. But Jordan is also a prosperous businessman in his NBA retirement, owning a golf course, restaurants, and the Charlotte Hornets NBA franchise.
According to a company statement, Jordan will advise DraftKings on things like product development and strategy. But he will also serve to offer input on inclusion, an issue important to Jordan.
Image source: Getty Images.
More than an advisor
DraftKings went public earlier this year via a merger with a special purpose acquisition company. The stock is up around 250% since April, with investors hopeful in the company's long-term growth potential. However, with the stock trading at close to 40 times trailing sales, expectations are exceptionally high. To grow into its valuation, DraftKings will need to find continued growth avenues.
Jordan will help advise on growth. And given his celebrity, it's reasonable to assume he can help with marketing. After all, he made much of his fortune as a Nike ambassador.
But this isn't all business. Jordan has been vocal in 2020 about the need for societal change toward racial justice. He's already pledged to donate $100 million in conjunction with his Jordan Brand at Nike "to organizations dedicated to ensuring racial equality, social justice and greater access to education." It appears he will be advising DraftKings in this area as well.
In exchange for his services, Jordan took an equity interest (part-owner position) in DraftKings. This aligns Jordan's financial interests with that of common shareholders. DraftKings stock is up 13% pre-market on the news.
