What happened 

Shares of DraftKings (DKNG 7.81%) rose 8% on Wednesday, following news that National Basketball Association Hall of Famer Michael Jordan had agreed to serve as a special advisor to the online sports-betting platform's board of directors. 

So what 

Michael Jordan is one of the biggest personalities in all of sports. The former NBA superstar is also a powerful force in the business of sports, with his billion-dollar partnership with Nike and controlling-ownership interest in the NBA's Charlotte Hornets. Jordan will use his extensive sports and business experience to advise DraftKings' board on strategy, product development, and marketing. In return, he will receive an equity stake in DraftKings.

A person is pointing to an upwardly sloping line that's above a flat line.

DraftKings' stock climbed on news of its deal with Michael Jordan. Image source: Getty Images.

Notably, Jordan will also help to guide DraftKings' "inclusion, equity, and belonging" initiatives. These topics are clearly important to Jordan, who along with Nike pledged $100 million to racial equality and education initiatives in June. 

Now what

DraftKings is positioning itself for success. Its partnership with Jordan should help to strengthen the company's relationship with the NBA and other sports leagues, as well as the millions of fans around the world who adore the basketball legend. Its stock offering in June helped eliminate its debt and bolster its cash reserves, which stood at $1.2 billion at the end of the second quarter.

With the NFL season set to start on Sept. 10, more sports fans may soon flood into its betting platform. For all of these reasons, DraftKings' stock could continue to head higher in the days and months ahead.