DraftKings (NASDAQ:DKNG) has brought in six-time NBA champion and five-time NBA MVP Michael Jordan as a special advisor to the board of directors.
What Happened: DraftKings announced the Jordan news on Wednesday morning.
“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur,” said Jason Robins, the founder and CEO of DraftKings.
Jordan will provide strategic and creative input to the company on a number of items. Jordan will help the company with product development, marketing activities and key initiatives.
Jordan, whose gambling history was brought to light again with "The Last Dance" documentary, will also have equity in the company.
Why It's Important: Jordan is one of the biggest figures in sports. He is a key endorser for brands like Nike Inc (NYSE:NKE). Despite only earning $90 million in NBA salary, Jordan has earned more than $1.5 billion from endorsements.
Nike paid Jordan $130 million last year, bringing his earnings to over $1 billion from the company. Jordan’s shoes and apparel continue to sell well.
DraftKings was recently downgraded by Morgan Stanley due to valuation and concerns that estimates on the sports betting market were overestimated. The company is also facing upcoming competition from the Barstool App, a sports betting platform from rival Penn National (NYSE:PENN).
DKNG Price Action: DraftKings shares were surging 14.7% to $42.34 in pre-market trading on this news.