What started out as a popular daily fantasy sports site is rapidly turning into a global giant in the entire sports industry. DraftKings sportsbook continues to from strategic alliances in every phase of the sports industry to expand its presence and reach.
The company has also remained extremely aggressive in the area of acquisitions and equity partnerships. Through these types of deals, DraftKings has been able to enhance its industry status in a number of different ways. On the digital media front, the latest purchase falls directly in line with its marketing strategy.
It was recently announced through a company news release that DraftKings has obtained the rights for “The Dan Le Batard Show with Stugotz.” The total cost of this latest move is reported to be $50 million.
The company will gain the rights to distribute and monetize the show while assuming the role as primary sponsor. This deal marks DraftKings’ first major licensing agreement with a media property.
Dan Le Batard rose to fame as a highly popular ESPN on-air personality. After leaving ESPN, his show become the flagship property of Meadowlark Media. That company was launched earlier this year by Dan Le Batard and John Skipper. The later was the former president of ESPN.
Gaining the rights to the show was not unexpected. DraftKings was a primary funding source for this endeavor to the tune of $12.6 million.
The $50 million price tag for the rights to the show covers a three-year span. Neither DraftKings nor Meadowlark Media released any specific financial terms.
For fans of the show, it will be business as usual. Current distribution of the podcast will remain the same with possibilities for expansion in the works. DraftKings assumes responsibility for selling ads and increasing the show’s reach.
This expansion covers the entire Le Batard & Friends Network across television and radio channels. This also includes digital and social media outlets. DraftKings will incorporate its betting odds, trends and statistical data into the podcast across the entire broadcast range.
The surge of growth at DraftKings over the past several months has produced billions in cash on the company balance sheet. This has led to its rapid expansion across multiple channels within the sports betting industry.
Media buys are viewed as a very efficient way to increase the overall customer base for the company’s betting products. This suggests that media properties and sports betting entities will only become more entwined with one another moving forward.
DraftKings is the second biggest legal US sportsbook in market share behind FanDuel. However, the Boston-based firm continues to do an excellent job of positioning itself as a major player in this rapidly expanding realm.
Just a few weeks ago, DraftKings came to terms on a deal to buy the Vegas Stats and Informational Network (VSiN). This Las Vegas-based media property was founded by former sports broadcaster Brent Musburger along with members of his family.
In another strategic move, DraftKings recently hired Brian Angiolet as the company’s first chief media officer. He was a former senior management executive at Verizon.