FanDuel Signs Exclusive Deal With NBA
Over the past year, we’ve witnessed first hand the incredible explosion in the popularity of Daily Fantasy Sports. We’ve seen prize pools swell to levels many didn’t think possible, mostly thanks to countless ads on ESPN, FX’s The League, and countless other places. But with all that in mind, FanDuel’s latest deal with the the NBA is perhaps the biggest sign yet of the rapid expansion of the industry.
Early Wednesday, FanDuel announced a four-year, exclusive deal with the NBA that makes FanDuel games the “Official One-Day Fantasy Basketball Game” of the National Basketball Association.
This isn’t the first time we’ve seen one of the major sites make a deal with a professional sports league. Not too long ago, DraftKings announced an advertising deal with the NHL that made them the official one-Day fantasy game for the National Hockey League. FanDuel’s newest deal with the NBA, however, is about much more than just advertising.
The main difference between this deal and any other that we’ve seen in the past is that this agreement includes the addition of a representative of the NBA as a member of the Board of Directors at FanDuel. In addition to that, the NBA actually receives partial equity in FanDuel, making them part owners of the company.
The actual amount of equity stake acquired by the NBA has not been disclosed, but regardless of the amount, this is an historic day for the DFS industry. The leagues themselves are beginning to realize that Daily Fantasy is a fantastic way to expand their fan base, and that means that we’re only likely to see more deals like this in the future. With the MLB, NBA, and NHL all getting involved in DFS in some form or fashion, it would seem that any lingering worry about the legality of Daily Fantasy (of which there wasn’t much to begin with) is soon to be behind us.
This deal was announced days after FanDuel signed and announced advertising deals with a number of individual teams across the NBA, including the Cavaliers, Nets, Magic, Mavericks, and Bulls. You can see the FanDuel logo all over the place at these stadiums, including on the floor directly below the benches. In fact, there is an entire bar section at the Amway Center in Orlando called the FanDuel Fantasy Sports Zone (pictured to the left).
In addition to the equity partnership in FanDuel, the NBA will now host daily games with NBA-specific prizes, including everything from game tickets to various memorabilia, trading cards, and more. The NBA will also be promoting these games across their vast range of networks, including all of their digital, TV, and mobile platforms.