Category
🥇
SportsTranscript
00:00Okay, so now, what's the latest here with the NFLPA suing DraftKings?
00:07You know, the NFLPA, just like the NFL, they want their piece of the pie here.
00:12Are they entitled to this?
00:13Do you feel like there is something to stand on here?
00:16I believe it's $65 million they feel like they're owed.
00:19Yeah, it's about $65 million.
00:21Craig, it's hard to say right now.
00:23DraftKings is trying to say that they don't owe this money because the NFT product that
00:30DraftKings and the NFLPA partnered on, they shut it down due to legal issues.
00:37And it looks like the legal issues that they're talking about are whether NFTs can be classified
00:42as securities or not.
00:44Now, when they wrote up the contract with the NFLPA, it did include an out for them
00:51that said, if NFTs at any point are categorized as securities or various other things that
00:59could have been listed as, that allows DraftKings to break the contract.
01:03And so that is what they are saying they're doing, that they do not owe this money.
01:07And the NFLPA is saying, of course, you owe this money.
01:11First of all, the ruling that—it wasn't even a ruling that says the NFTs are securities.
01:18It was simply a court allowing the case to continue.
01:21So there is a lot of assuming going on there that that would go through the way that DraftKings
01:27at this point hopes it does.
01:29And the NFLPA, they really took a big swing at DraftKings on this, and they listed out
01:36the compensation for five of their executives since that NFT partnership was going on.
01:42And it came out to more than $260 million since 2021, Greg.
01:49That's a lot of money that's going to executives.
01:51And so they're saying, how do they not have $65 million to pay what they legally have
01:57to pay as part of a binding contract?
02:00So we're going to be watching this for a while.
02:02It is not a good look for the NFL and the NFLPA to be having this big of a beef with
02:10one of their authorized sports betting partners.
02:13And DraftKings has had a rocky month, and it's been up and down for them.
02:19They got a great headline this morning.
02:20They are buying SimpleBet, so they're going to add in AI pricing, and their offerings
02:26and live betting and parlays will be a little deeper.
02:29So that's a great headline that sent the stock green this morning.
02:32But yeah, a couple of lawsuits going on for DraftKings right now, and it's more negative
02:39headlines than positive heading into the football season for them.