NFL Doubles Down on Sports Gambling Data With A $94M Investment in Genius Sports
Televised NFL games in black & white, games only on Sundays, NFL office pools, and unwillingness to publicly be involved in sports gambling are all things in the rear window of the modern-day NFL.
Cloaked in creating an immersive fan experience is the reality of the modern NFL, which is all about showing you the money, that is, showing you the money that you could possibly make on gambling on your favorite teams and players.
Yes, the public image of the NFL shield is very important, and so is its head-first involvement in the world of sports gambling, which has paid off in a wide variety of ways for the NFL that make it hard to calculate.
Just look at the ratings for this year's AFC and NFC championship games. The AFC Championship clash between the Kansas City Chiefs and Buffalo Bills drew an average of 57.4 million viewers on CBS. Meanwhile, the NFC Championship showdown featured the underdog Washington Commanders and the Philadelphia Eagles, resulting in over 56.7 million viewers.
From season-long fantasy football leagues to daily fantasy football games to legalized betting across platforms, like FanDuel and DraftKings, the public has become accustomed to not just watching football but having a vested interest financially in the outcome of the games.
Like any well-run conglomerate, diversification of assets into growth areas is key to growing a company's bottom line, which is why it’s important to understand just how important the NFL’s major strategic investment acquiring $94 million worth of Genius Sports stock, positioning the NFL as the largest shareholder in the sports data and analytics company is so important.
This move comes as part of an extension of their exclusive partnership, granting Genius Sports two additional years of rights to provide play-by-play and gambling data to sportsbooks worldwide.
Under the terms disclosed in a recent regulatory filing, Genius Sports issued 9.5 million warrants to the NFL, with an exercise price of just one cent per share. Given Genius Sports’ stock price at the time was around $9.93, this translates to a value of approximately $94.34 million. Combined with the NFL’s existing 14.5 million shares, the league now owns close to 8.7% of Genius Sports, making it the company's largest stakeholder with a stake valued at over $235 million when including vested and unvested warrants.
This partnership, which began in 2021, has been instrumental in providing official gambling data and has now expanded to include advertising opportunities on NFL BetVision, a platform streaming live NFL games through sportsbook apps. Last season, BetVision aired about 270 NFL games, underscoring the growing integration of sports data and betting.
The investment underscores the NFL’s commitment to leveraging data and analytics to enhance fan engagement and capitalize on the booming sports betting market. Genius Sports, which has shown strong financial growth with projected 2024 revenues of around $510 million and a positive cash flow outlook, stands to benefit significantly from this deepened collaboration.
By becoming the largest shareholder in Genius Sports, the NFL not only secures a strategic commercial partnership but also gains a powerful foothold in the evolving sports betting ecosystem, aligning its interests with the future growth of sports data technology over the coming decade.
This bold move is expected to influence both the sports and betting industries, potentially driving further innovation and integration between leagues, data providers, and sportsbooks.