The Israeli Connection Behind Michael Jordan’s Deal With DraftKings
CTech – Digital sports entertainment and gaming company DraftKings announced on Wednesday the joining of Michael Jordan as a special advisor to the company’s board of directors. The NBA Hall of Fame inductee, six-time NBA Finals MVP and chairman of Hornets Sports & Entertainment agreed to take an equity interest in DraftKings in exchange for providing guidance and strategic advice to the board of directors on key business initiatives undertaken by the company that went public earlier this year.
“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur,” said Jason Robins, DraftKings co-founder and CEO. “The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team.”
Among those Jordan will be advising on the board is DraftKings’ largest shareholder, Israeli Shalom McKenzie. McKenzie’s SBTech, a provider of sports wagering technology solutions which he founded, was part of a reverse merger that resulted in Diamond Eagle, DraftKings, and SBTech signing a business combination agreement (BCA) back in April that led to the combined company debuting on the Nasdaq Stock Exchange under the DraftKings name.
As a special advisor, Jordan will 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.
DraftKings and SBTech revealed in May that they both saw revenue grow in the first quarter of 2020, but combined losses widened to $74 million in the pair’s last full quarter before their merger closed, with COVID-19 halting most sports leagues across the world.