MLB, NBA looking to end respective ownership stakes in DraftKings, FanDuel
Discussion around daily fantasy sports and the bills to regulate that space has revolved around the professional sports leagues that have ownership interests in DFS companies like DraftKings and FanDuel.
Well, that may no longer be the case with MLB and the NBA, which ESPN’s Darren Rovell and David Purdum report are discussing divesting from their respective equity positions in those companies:
Major League Baseball and the NBA are in discussions to divest their financial interests in daily fantasy sports, but plan to remain partners with DraftKings and FanDuel, respectively, league sources told ESPN on Thursday.
Major League Baseball had been an investor in DraftKings since 2013, and in 2015 signed a multi-year sponsorship deal that made DraftKings the “Official Daily Fantasy Game” of MLB. The NBA took an ownership stake in FanDuel in Nov. 2014. The financial details of the deals were not disclosed nor were the exit terms.