DraftKings inks sponsorship deal with NFL
The National Football League inked a deal with DraftKings on Thursday to become its "first-ever official daily fantasy partner."
Terms of the sponsorship were not disclosed, but the NFL clarified that it does not include promotional rights for sports betting. Instead, the agreement allows DraftKings to use the league’s branding in its marketing campaigns. DraftKings will also work with the NFL to drive users to its app, as well as feature DraftKings branding on NFL media properties.
“Throughout our discussions with the league, it was evident we share a common vision around the future of fan engagement," Jason Robins, CEO at DraftKings, said in a statement. Renie Anderson, the NFL's chief revenue officer and executive VP of NFL Partnerships, stated that "we're thrilled to partner with DraftKings, a clear leader in the daily fantasy space, as they continue to innovate and provide our millions of fans additional ways to interact with and enjoy the NFL."
Featuring the NFL’s branding on DraftKings marketing material should bode well for the company, lending it credibility. DraftKings has previously described football season as its “Black Friday." DraftKings wants to nudge players both new and old onto its platform. Last month, it dropped its first-ever in-house marketing campaign to help achieve its goals. The campaign showcases regular people — both celebrating and wallowing — at actual DraftKings' events for cash prizes that were held across the country
“It’s an emotional rollercoaster,” Tom Goedde, chief marketing officer at DraftKings, previously told Ad Age. “You have to feel the lows to feel the highs, otherwise, when you win a game it feels a lot less.”
Daily fantasy sports, more commonly known as DFS, involves picking players at each offensive position through a set budget. Generally speaking, points are awarded each time a player scores a touchdown or records a catch, for example, and players who compete win when the players they selected produce the highest overall point total.
An NFL player with a strong matchup — think Chiefs signal caller Patrick Mahomes playing against a bad defense— will command a higher price tag versus a less-proven player like Jaguars quarterback Gardner Minshew. Selecting the right players, in the right matchup, who are also priced low — and then go on to have a monster performance — is critical when developing a strategy to winning cash through DFS.
Daily fantasy sports generated $3.2 billion in entry fees nationwide last year, according to figures from the New York State Gaming Commission, cited by Legal Sports Report.