NFL Invests $94 Million in Genius, Becomes Majority Owner
Let's talk NFL and Genius Sports' cash-packed collaboration 🎉
The NFL dusted off its wallet and handed over $94 million worth of Genius Sports' stock, sweetening the pot for two more years of exclusive access to play-by-play data and gambling stats for sportsbooks across the globe 💸.
Charles Scherr, Genius' head of corporate development and strategic initiatives, celebrated the partnership, stating, "The NFL is our bread and butter; that puts us at the top of the game in the market." He further added, "This agreement ensures everyone's mission is aligned for the next five years, steering us through this decade."
In a financial disclosure revealing the details of this data deal extension, Genius granted the NFL 9.5 million warrants (the right to buy stock), with 4.5 million instantaneously vested and the remaining 5 million vesting on April 1, 2028. With an exercise price of just a penny each, this stock award equals $94.34 million, given Genius' early stock price of $9.93 that day 💰. Shares surged more than 5% on the revelation.
The NFL already owned 14.5 million shares, all exercisable warrants, from the original data deal with London-based Genius. Adding the new warrants, and Genius' current diluted total share count of 277.2 million, the NFL effectively owns a whopping 8.7% of the business, making it the top dog of shareholders 🐺💼. The NFL's total stake, including both vested and unvested warrants, is now worth more than $235 million.
According to Genius' annual report, the league owned 18.5 million warrants, all exercisable, by the end of 2024. With the additional responsibilities that come with owning 10% or more shares, the NFL likely plans to stay below the 10% ownership threshold to avoid excessive regulation.
When reached for comment, the NFL chose to remain tight-lipped, responding only to what was mentioned in the announcement.
The duo first teamed up in 2021 to offer official gambling data. The extended agreement opens new opportunities, such as Genius selling ad inventory on NFL BetVision (live game streams in sportsbook apps). In 2021-2022 season, Genius broadcast approximately 270 NFL games through BetVision [📢].
Trivia Time:Did you know? In a strategic move, the NFL now owns a substantial chunk of Genius Sports, making them the largest shareholder 📈 [📰]. This collaboration is expected to accelerate the growth of innovative projects like live betting products and technologies aimed at enhancing the fan experiences [📱 📺].
- The NFL has become the largest shareholder in Genius Sports, owning an 8.7% share of the business following a $94 million stock deal.
- This extended partnership between the NFL and Genius Sports allows for new opportunities, such as Genius selling ad inventory on NFL BetVision, live game streams in sportsbook apps.
- With the additional responsibilities that come with owning 10% or more shares, the NFL may choose to stay below the 10% ownership threshold to avoid excessive regulation.
- By owning a substantial portion of Genius Sports, this collaboration is expected to accelerate the growth of innovative projects like live betting products and technologies aimed at enhancing the fan experiences in both football (soccer) and American-football.
