Category Archives: Fantasy Sports

DraftKings becomes NASCAR’s official daily fantasy sports partner

Daily fantasy sports operator DraftKings has inked a deal to become the exclusive fantasy partner of the NASCAR auto racing organization.

The three-year deal, which was announced on Thursday, gives DraftKings the designation of NASCAR’s ‘Official Daily Fantasy Sports Partner.’ The partnership gives DraftKings the exclusive license to develop NASCAR-branded games for the DFS market.

NASCAR has agreed to provide DraftKings with a direct real-time data feed to give players up to the minute statistics on races and drivers. The data and games will also be available on DraftKings’ mobile app, giving DFS players something to do while waiting for the cars to zoom by their particular seat in the grandstand.

DraftKings is promising both free and paid games in which players pick a team comprised of five NASCAR Sprint Cup Series drivers. Scoring will be based on finishing position, fastest laps, laps led, position differential and passing differential. In addition to cold hard cash, DraftKings players will have the opportunity to win unique NASCAR prizes and VIP experiences.

One Sports Business Makes CNBC’s Disruptor 50 For 2015, And It’s Winning In Pay Fantasy

One Sports Business Makes CNBC’s Disruptor 50 For 2015, And It’s Winning In Pay Fantasy

Uber, AirBnB, Pinterest, Dollar Shave Club. All brands that have challenged the establishment and lived to tell about it. They buck trends and carve their own way, and that’s why they were selected to the CNBC Disruptor 50 list for 2015.

CNBC features private companies in 16 industries-from aerospace to financial services to cybersecurity to retail-whose innovations are revolutionizing the business landscape. These forward-thinking upstarts have identified unexploited niches in the marketplace that have the potential to become billion-dollar businesses, and they rushed to fill them. In the process, they are creating new ecosystems for their products and services. They ranked those venture capital-backed companies doing the best job.

On the list was one sports industry brand, and it wasn’t ESPN or a new sneaker startup or even Under Armour. It was the brand that seems to be advancing and challenging even the new world of fantasy sports elite; the more established and much larger and higher valued Fan Duel.

It was DraftKings, which chimed in at number 50 and is the latest feather in the crown, so to speak, for the attacker brand of pay fantasy. The fact that a pay fantasy brand made the list is impressive. The fact that no other sports brand made it is even more impressive. Here is the full list, courtesy of CNBC.http://www.cnbc.com/id/102609977

Fantasy Sports Could Suffer the Same Fate as Poker

Daily Fantasy Sports has exploded in popularity over the past couple of years due to a lack of regulation, a fervent desire for people to gamble, it’s turned regular people into millionaires, DFS is touted as a game of skill and it’s presence seen and felt all over the sports networks, so much so that it has politicians and anti-gambling nuts up in arms calling for bans. DFS meteoric rise and its lack of regulation could force the US government to enact some sort of limits or ban that could crush the burgeoning industry.

Does this sound familiar? If you’re an online poker player, it should.

The similarities between the rise of online poker and the dally fantasy sports industry is eerie. Both are clearly gambling, both are touted as games of skill rather than luck and both piss off the powers that be who would rather have a say on how allegedly free Americans can spend their entertainment dollars.

When the US Government passed the Unlawful Government Enforcement Act back in 2006, there were carve outs for both horseracing and fantasy sports but it’s clear the politicos didn’t realize that fantasy sports would evolve so much to allow gamblers a daily fix of what is essentially sports betting.

DraftKings Finds Another Partner With A Million Dollars At Stake

By @TheDailyPayoff

You have to give it to DraftKings for looking high and low to find not just the bigger partnerships, but the most creative niche ones to draw attention in their Mano a Mano battle with Fan Duel as leaders in daily pay sports fantasy.

It’s latest partnership came Tuesday, when DK joined forces with another “disruptor” in sports, the Boston-based, The Basketball Tournament (TBT), a single-elimination, five-on-five, winner-take-all, open-application tournament.

The pair joined forces to come up with a promotional partnership for their 2015 event, which runs in July and August on ESPN (another DraftKings partner by the way). One of the 96 teams will get some elite status as being the “official” DK entry in the field.

Here’s how it works according to the press release: In order to win the DraftKings sponsorship, teams and their fans will compete in a DraftKings daily fantasy game centered on the NBA Conference Finals. Whichever fan or TBT participant wins the contest will also win a premium experience for himself or herself, a guest, and each member of his or her team.

The DraftKings sponsorship package includes travel to a region of the team’s choice, DraftKings-sponsored uniforms, and an apparel package from other official TBT providers, including Rock ‘Em Socks and iSlides. The uniform sponsorship represents a first for DraftKings and a first for TBT as well.

The interesting aspect of the partnership is its ties to the play in the NBA Conference Finals. This way a wide number of the participants ( 96 teams in the field when it is unveiled)  makes for a solid growth pattern for a sport – hoops – that is not as much in the DK sweet spot as say baseball or the NFL. It also gives DK visibility in July when fans might be away from pay fantasy and are getting ready to gear up for NFL, which remains the big money area for pay fantasy.

“Our business is built around the passion of sports fans. The idea that anyone can build and be part of a championship team in The Basketball Tournament aligns perfectly with our DFS offering,” said Jeremy Elbaum, Vice President of Business Development at DraftKings in the release. “At DraftKings, any given day someone could skillfully create the perfect line-up and become a millionaire.”

In 2015, The Basketball Tournament will have 96 teams playing for a winner-take-all prize of $1 million. Opening rounds begin July 10-12 at regional sites in Los Angeles and Atlanta and continue July 17-19 in Chicago and Philadelphia with the winners playing down to an August 2 final in New York. ESPN’s platforms will carry a bulk of the early round games, with the semi-finals and finals airing live on ESPN as previously reported.

The question looms will this type of promotion change the game for Draft Kings? No. However like some of their other niche partnerships they are showing creativity and flexibility that brings casual sports fans to their platform and helps increase brand loyalty overall. Every time they touch a fan in a sport they are interested, they have a chance at conversion and for sure anyone interested in TBT is a core hoops fan or participant. It is low cost, with a chance at solid impact for DraftKings, and a nice talking point for an event looking to find its footing, a solid bet on a partnership for all involved.

More Probable Than Not Observations on Deflategate and Other Sports Trends

By Terry Lyons @terrylyons @TheDailyPayoff

After four months of speculation, accusation and humiliation, the National Football League via an independent investigation came down from their Park Avenue mountaintop to decry, in a 243-page report, “that it is more probable than not” that New England Patriots QB Tom Brady and two locker room attendant/ball boys were involved and aware of circumstances involving the improper deflation of footballs used in this year’s AFC Championship football game.

With that in mind, I thought it might be useful to examine a few other occurrences that might be “more probable than not.”

First, regarding the football game in question: Because of the 45-7 score in favor of the Patriots, it is more probable than not that the slightly deflated footballs utilized by the Patriots had no bearing on the outcome of the game. However, it is more probable than not that they helped inflate the number of fantasy points accrued by RB LaGarrette Blount.

With the report conducted by Ted Wells and a team of lawyers from Paul, Weiss, Rifkind, Wharton and Garrison coming down and the NFL soon to dole-out punishment, it is more probable than not that back-up QB Jimmy Garoppolo will be starting when the NFL season kicks off with the Patriots vs. Pittsburgh Steelers game on September 10th.

Leading up to that date, it is more probable than not that Patriots head coach Bill Belichick will no longer be quoting Mona Lisa Vito.

Away from football, it is more probable than not that basketball fans raised their eyebrows when Madison Square Garden boss Jim Dolan hired Isiah Thomas to be the president and co-owner of the New York Liberty. It is also more probable than not that Bill Cosby will not be a WNBA owner.

In boxing, it is more probable than not that a few million fans who purchased the Mayweather-Paquiao pay-per-view for $99 will be stupid enough to do it again if there is a rematch.

In hockey, it is more probable than not that viewers will change the channel from a playoff hockey game unless Emmy Award winning play-by-play man Doc Emrick is calling the game.
http://www.nj.com/devils/index.ssf/2014/05/listen_amazing_doc_emrick_soundboard_lets_you_hear_all_of_legendary_nhl_announcers_quirky_phrases.html

It is also more probable than not that I would never look to CNBC or USA Network for a Stanley Cup playoff hockey game.

Along those lines, for some reason, I have tabbed TruTV as a favorite on my remote, but I haven’t watched a minute of TruTV other than NCAA March Madness.

It is more probable than not that most of the NBA’s postseason awards will leak to the media before they are officially announced by the league. Similarly, it is more probable than not that the NBA Players Association will screw-up their own version of postseason awards.

It is more probable than not that the NCAA will intervene and put a stop to open, free transfers of graduate students. And, it is more probable than not the NCAA will not care when there is significant backlash from the players, err, student-athletes.

It is more probable than not that, after David Letterman and Jon Stewart retire, the funniest late night tv act will be the NBA on TNT’s Ernie, Shaq, Kenny and Charles.

It is more probable than not that the NBA will ignore the problem of “Hack-A-DeAndre Jordan” and just let the trend play out.

It is more probable than not that NBA reporters will not bring up what might be in James Harden’s beard.

It is more probable than not that Tim Duncan will be playing next April 25th, on his 40th birthday.

Heading into The Players Championship, the fifth major so-to-say, it is more probable than not that Tiger Woods will not catch Jack Nicklaus or … Wilt Chamberlain.

It is more probable than not that LA Clippers reserve power forward Big Baby Davis will never be mistaken for the Royal baby.

And now for some serious predictions:

It is more probable than not that American Pharoah will not win the Triple Crown, but I like his chances.

It is more probable than not that the Stanley Cup Finals will involve teams that no one cares about.

It is more probable than not that Golden State will win the NBA championship, and I like their chances even more than American Pharoah’s.

And lastly, it is more probable than not that there are already too many candidates for the 2016 Presidential election.

Elite former Athletes Tackle Gambling, Fantasy and Life After Playing

By Joe Favorito @JoeFav and Frank Scandale @FScandale @TheDailyPayoff

No matter what the sport or the level of management, the infusion of gambling and fantasy gaming into the conversation is hard to avoid. Tuesday night at the regular monthy gathering of the New York Sports Venture Capital proved the point as three elite former athletes took turns tackling those and other hot topics.

Former member of the New York Giants Charles Way, former ATP pro Patrick McEnroe, and former college basketball star and ex-coach of the New York Knicks and Vancouver Grizzlies Stu Jackson did not hold back when talking about the issues and challenges athletes face post playing career, nor did they shy away from the issue of analytics, fantasy and gambling.

Television personality Julie Alexandria kicked off the night by focusing on the breaking news of the day – Isiah Thomas back in basketball in New York, this time with the WNBA’s NY Liberty team.
McEnroe said his first reaction was, “Are you kidding me?”

From there the night moved fast.

While some of the time was spent talking about how the athletes managed challenges, filled the gaps in their lives after a lifetime of training and playing and forming new careers in business, the conversation soon turned to analytics and pay fantasy for both the athletes and the business of sport.

McEnroe, who recently finished his run as USTA Director of Professional Player development and remains active in broadcasting, talked openly about the issues of gambling in tennis, a sport which he said is the second-most wagered on sport in the world. He said most of the players do not earn much on the circuit – and is a proponent of changing the way prize money is distributed – so the temptation to shave a match at the lower levels is great. He said players at those lower levels have been suspended for questionable playing.

Jackson, now Associate Commissioner for The BIG EAST Conference, talked about the need for an understanding of analytics to get ahead in business and the value fantasy gaming has brought to the NBA in terms of fan engagement.

“There is no doubt pay fantasy has been very important to the engagement of fans, especially young fans today, and I think everything leagues like the NBA have done to embrace, rather than shun, the gaming/gambling space is the right thing to do. It’s not going away, it’s only going to grow,” Jackson added.
Jackson said he is a fan of fantasy because it will help the sport grow globally.

He also said he is a big proponent in analyzing data. “The day of saying, “I know it when I see it,” is over.”

McEnroe, admittedly not a fantasy player, was a lot more direct about the issues and opportunities technology, and fantasy sports, have in tennis. “Hey tennis was first with electronic line calls which have now become a part of the game, and we need more innovation to keep going,” McEnroe said.

Asked how his brother, famed hothead superstar John McEnroe, would have fared with the replays changing the calls, Patrick quipped that his brother still would have argued with the technology.

“As far as fantasy, I view it as gambling and although I don’t play, we know it (gambling) goes on and the sport has had its issues with scandal because of the wide discrepancy in pay for the athletes. As long as there is still such a wide gap and gambling is out there unregulated, there will probably continue to be some problems,” McEnroe said. “Fantasy is like legalized betting.”

Way, now of the staff at the NFL, deflected most of the talk around the gaming/gambling issue, not surprising given the NFL’s stance as being the most dogged public opponent on the issue of legalized gambling. However,he acknowledged the need for continued engagement through analytics and the growth of fantasy as an engagement tool, although he did add that, “Unlike other sports, success in football is much more tied to chemistry and culture, something which analytics helps but doesn’t take precedence over at this point.”

How all this ties into the careers of today’s athletes is not perfectly clear, but all three acknowledged that the success post-career must involve deep thought and commitment to surrounding yourself with the right people on the business side as you did when you were playing. That will now involve more of an understanding of analytics for business or sport, while keeping an eye on the growing business of gaming as it evolves into a lucrative profession for some athletes post-career; not in being a greeter in a casino as happened in year’s past, but as a trusted advisor for companies looking to engage in sport through analytics and potentially pay fantasy.

Where all the pay fantasy, legal gambling aspect of sport goes in the future remains up for great debate in the United States, but the conversation across sports continues to lead back to one thing; the business of engaging fans is more and more tied to data, analytics and fan engagement through fantasy, whether you are on the tennis court or the gridiron, and the pot continues to grow.

When Fantasy Became An Obsession

By TERRY LYONS @terrylyons Contributing Columnist for @TheDailyPayoff

It started with the very best of intentions.
But as with so many major (or minor) vices in life, it quickly grew into an obsession. The weekly NFL Fantasy League, a competition involving a bunch of writers in the Dallas-Fort Worth area and a few PR gurus in Dallas, LA and New York, morphed into a full-blown NBA Fantasy Sports League.

The year was 1983 and in a Boston Globe column, Celtics forward Larry Bird casually described the way he determined how impactful every player’s statistics were on a nightly basis as he tried to figure out a way to compete against his nemesis Earvin “Magic” Johnson despite the fact they only saw each other twice a season. Bird added the “positive” stats – points, rebounds, assists, blocked shots and steals then subtracted the “negative” stats – missed field goals and free throws, turnovers and personal fouls.

Little did he know at the time, but Bird had created the best possible formula for an NBA fantasy sports game. At a later date, it was determined that some personal fouls might actually be a “positive” occurrence, so that stat was banished from the equation and “The Larry Bird League” was officially created.

To protect his innocence, I will leave-out the name of the commissioner and mastermind of the Larry Bird League, but suffice to say, he was (and still is) one of the best writer-reporters the NBA beat has ever seen. He went to the lengths of actually having Larry Bird draw the order of the league draft nearly every year, usually at an NBA preseason tilt in Hartford, CT or Springfield, MA. In one instance, maybe in 1986 or ’87, while the Larry Bird League commissioner was busy conducting the annual draft while covering games on the east coast, one of the Bird League franchise owners was at The Fabulous Forum in LA, covering Magic Johnson and the LA Lakers.

That rival Bird League team owner met-up with the one and only Magic Johnson for a pregame interview, some 12-24 hours after that year’s fantasy draft had been conducted, and he explained the situation to the Magic Man.

“I got you with the fifth overall pick,” he told Johnson.

“Fifth?” Magic questioned, his competitive instincts surfacing.

The writer had to explain that in the Bird League you had to fill out a line-up based by position, and the top centers were a hot commodity and were often first-round picks. centers like Hakeem Olajuwon and Patrick Ewing were always gobbled-up early.

“Oh, okay,” said Magic, still not quite understanding the concept of fantasy sports.

Then, as only Magic Johnson could put it, complete with that friendly smile, “So? Who we got?”

That was the end of innocence in our world of fantasy sports.

Fast-forward to the 1992 Olympic Games in Barcelona, the year the one and only USA Basketball Dream Team was to prove they were the best team ever assembled in any sport. Ever.

One or two nights before the opening ceremonies were to take place, the esteemed commissioner of the Larry Bird League, on assignment to cover the Olympic Games, had managed a feat almost as difficult to obtain as a gold medal in the Decathlon. The commish obtained admission into one of the most secure locales on the planet, outside of the Situation Room in The White House. He was in the lobby of the Hotel Ambassador, just a few steps off the Ramblas in Barcelona. It was the hotel headquarters for the Dream Team.

It was early in the evening and the order of the draft needed to be determined because the actual draft would be taking place only hours later at 7 Portes seafood restaurant in Barcelona. Not all the regulars of the usual NBA Bird League were on hand, but a few others eagerly snapped up the expansion franchises, because we needed all fantasy team owners to be on hand for a live draft to be conducted over dinner, on – probably – the last night of the Olympics we’d actually have a decent dinner, aside from fast food gorging or a press room “Jamon and cheese.”

The lobby of the Dream Team hotel in Barcelona was pretty small, as the Hotel Ambassador was designed to be a small, commuter hotel, not much different than a Marriott Courtyard or Holiday Inn Express. The rooms were rather small and the lobby bar had only six or eight chairs. On the night of our draft, Bird sat at one of them, on the far right side, chatting with a few of his buddies who accompanied him on the trip. They were going to take in an Olympic baseball game and bird had a USA Basketball hat on, as he always did.

I had my back to Bird and we were excitedly planning for the upcoming draft, gathering all team rosters and making sets so each franchise owner would be able to draft later that night. Of course, we were also strategizing a bit, noting that the USA players, many who would only play 15-20 minutes per night, might go in the second or third round.

Suffice to say we were totally ignoring Bird and his small entourage and we thought he was ignoring us.

The commissioner of our league had scribbled out the numbers – 1-through-8 – on little pieces of paper and he crumpled them up into tiny pieces.

Now, the important part!

Not a single word was said.

I turned around, pivoting, so-to-say, on the great Larry Bird, who proceeded to remove his cap and hold it out as he rolled his eyes and shook his head just slightly.

The Bird Commissioner reached over, past me, and tossed the tiny papers into the baseball hat. Bird handed me the cap and I raised it as high as I could so Larry had to reach up to pick the papers – one at a time – out of the cap, thus determining the order of our draft.

Upon Bird selecting the seventh team, I brought the cap down to eye level and we all observed the one piece of paper left in the cap.

I grabbed the paper, unfurling it as I did, and Bird promptly placed the cap back where it belonged – on his scruffy, blond locks.

We went back to our business and Larry returned to his cold cervaza San Miguel on the bar and continued his conversation with his two friends.

Bird knew the routine.

Now, the reason for that interesting intro is simple. Our basic fantasy NFL league had become the prototype for an NBA fantasy sports game and that morphed into the Olympic Games basketball version where Puerto Rico’s leading scorer Jose Ortiz or Australia’s Andrew Gaze were pure gold, in fantasy terms. Brazil’s Oscar Schmidt, now a Hall of Famer, was another fantasy juggernaut and so was the late Drazen Petrovic or his Croatian teammate Tony Kukoc, although Michael Jordan and Scottie Pippen shut Kukoc down mightily in the two games against the USA. Charles Barkley of the USA was the most valuable American player, as he led the team in scoring and I remember being happy with “a couple top Argentines” drafted in the middle rounds.

Fast-forward two years to the 1994 World Championship of Basketball, held in Toronto, and one of our colleagues, who had attended the 1990 World Championship and ’92 Olympics and had a keen fantasy mind, drafted Richard Matienzo, the top Cuban player in our “WCOB” Bird League. Matienzo was Cuba’s leading scorer and rebounder, but he failed to show up to the team’s August 11, 1994, game against Germany. He had defected.

“He left the hotel Wednesday night with his friends but he hasn’t come back,” said Cuba’s head coach Miguel Calderon Gomez to The New York Times, refusing to speculate as to the whereabouts of his player.

In the cold, cruel world of fantasy, where the previously productive player would now be getting giant goose-eggs on a nightly basis, we applied the “Doug Moe Rule,” which quite simply was “Tough Shit.”

With the foundation laid solidly, our group expanded our fantasy borders to all types of competition. If it worked for the NFL, the NBA and the Olympics, it surely worked for NBA Summer League, correct?

Yes, some of the writers actually held a Midwest Rookie Revue Bird League one summer. And, that was not the most far-fetch fantasy league we conducted. There were impromptu leagues for ice hockey at the Nagano Olympics, there were team-based games for World Cup soccer, there were single night fantasy games for the annual NBA All-Star Game and The Finals. There were great Ryder Cup golf leagues, MLB All-Star leagues and Kentucky Derby Fantasy leagues. You name it, we did it.

The most ridiculous?

One winter night while attending a women’s corporate basketball game in Manhattan where some of the NBA Entertainment staffers were competing, and two of the longtime members of the Larry Bird League were in attendance, so we quickly scratched out the roster numbers of the players on the two teams.

Let’s just say, I remember I won because I had attended a few games before the Rec league game that night, scouting the players, of course. So, I can now confess, and thank star NBAE power forward-center Kathleen Reidy who always put up a double-double.

Gambling in the Sports Digital Space with Chris Russo

By Joe Favorito @JoeFav @TheDailyPayoff

As we enter perhaps the busiest sports gambling weekend in some time, there are few who understand the convergence of digital, fantasy and sport better than Chris Russo.
Russo has been ahead of the curve in his time at the NFL, in his time as the founder of what was Fantasy Sports Ventures and became The Big Lead, and now is back in the business with Fifth Generation Sports, a boutique agency with capabilities in marketing, research, digital and social media with access to investment capital that will again look to be ahead of the curve in the highly fluid and volatile world of sports and digital.

94AE3405CA33487F91B4EF5BFE56E370.ashxThe Daily Payoff caught up with Russo to ask him about his new venture, where the opportunities, and more importantly where the misconceptions are in the digital sports business.

TDP: You have been involved in a number of startups in sports and digital, what will your latest project now be doing?

CR: Fifth Generation Sports will be focusing on the business of sports and technology. We’ll provide a range of consulting and intelligence services. I’ve also completed a relationship with MESA Global, a boutique investment bank, and I’m excited about helping build a sports M&A practice at MESA.

TDP: Fantasy Sports ventures was ahead of the curve when it launched. Are you surprised with the way the business of pay fantasy has now exploded?

CR: I am not really surprised that pay fantasy has become a huge business. The leading companies in the space have done a great job with their products and marketing. Also, the fantasy business was becoming stale and needed some type of major innovation. Daily fantasy is the perfect formula because it brings in new audiences and also makes daily sports like basketball, baseball, and hockey attractive, while football continues to be very popular.

TDP: What is the key to success in any fantasy opportunity going forward?

CR: I believe that many new opportunities to be developed in the coming years will be tied to the daily fantasy ecosystem. I expect that there will be a number of new products and services that provide some type of value to the daily player. Also, products that best leverage mobile consumption will be more likely to succeed.

TDP: How important is mobile activation?

CR: Mobile is critically important to any digital sports property. In many cases, more than half of the digital usage is driven via mobile. Unfortunately, the monetization of mobile sports is lagging, as it is in other sectors, but I do believe that the dollars will ultimately follow the eyeballs.

TDP: Who are some of the people you follow in the business and why?

CR: I don’t necessarily follow specific people but keep an eye on areas of innovation in digital sports. There are many interesting developments in OTT (Over The Top) , for example. We’ve already discussed the amazing growth of daily fantasy. Also, there has been a lot of excitement in the youth and high school sports space.

TDP: The NFLt announced their long-awaited YouTube deal. How important is that partnership for the YouTube brand?

CR: YouTube brings an enormous audience, and I think it makes sense for the NFL and other sports leagues to leverage that platform for fan development purposes. While the audience has been there for many years, my sense is that the monetization opportunity for the leagues in this context, and in social media generally, is increasing, which is why we see renewed focus on these types of deals.

TDP: How important is it for a digital sports brand to be global? Is hyper-local content enough?

CR: I believe that being a global brand is important for many sports properties and businesses, but not necessarily for all. Digital gives virtually every sports property a low cost way of creating a global footprint, but making money overseas may only be viable in the short run for certain properties. Regarding local content, I think the most important trend is the creation of new software and publishing tools that enable the local sports entities to efficiently create their own content. This allows a bottom up approach to local sports vs. the top down approach was which used in the early days of the internet.

TDP: What’s the biggest misconception people have about the fantasy space?

CR: The biggest misconception is that it’s very easy to make a lot of money in fantasy sports. While it’s true that several of the companies are doing very well, the space is extremely competitive and there are many companies that need to work hard simply to keep afloat. While I would encourage new companies to pursue their fantasy sports initiatives, it’s not an easy road.

Chris Russo Bio:
Chris Russo is a recognized industry leader and innovator in digital sports media. Mr. Russo’s diverse experience in digital sports includes his tenure as head of digital media for the NFL, his entrepreneurial success as CEO of Big Lead Sports, and his current roles as President of consultancy Fifth Generation Sports, Senior Advisor at MESA Global and adjunct professor at NYU’s Tisch Institute for Sports Management, Business and Media. Highlights of his career include:
NFL
Mr. Russo served as Senior Vice President, New Media for the National Football League. In that role, he had broad P&L responsibility for the digital media business unit and oversaw all day-to-day operations, including content, advertising sales, marketing, and business development. He completed digital media transactions with total value in excess of $1 billion, including arrangements with Sprint, eBay, Yahoo, CBS Sports, AOL, and Sirius Radio. He launched the NFL’s first-ever fantasy football products and also played a critical role in the creation of the “NFL Internet Network” business model, aggregating NFL.com and 32 team sites into a unified property. Mr. Russo received the Sports Business Journal 40 under 40 Award for 3 consecutive years and is a member of the Sports Business Journal Hall of Fame.
Big Lead Sports (aka Fantasy Sports Ventures)
Mr. Russo served as Chairman and CEO of Big Lead Sports (aka Fantasy Sports Ventures), the largest independent online sports property in the U.S., reaching more than 20 million unique users and consistently ranking in the top 5 among all online sports properties. At Big Lead Sports, Mr. Russo aggregated 500+ sports sites via strategic acquisitions and business arrangements. He completed innovative ad programs with brands such as Coke, Sprint, Coors, and Gillette/P&G. Big Lead Sports was nominated for a “Best in Digital Media” award by the Sports Business Journal. In 2012, Mr. Russo sold the company to USA TODAY.
NYU
Mr. Russo currently serves as Adjunct Instructor for the Tisch Institute for Sports Management, Business and Media. In that role, he teaches NYU’s Digital Media course to graduate students. In 2013, Mr. Russo received the NYU Sports Business Society Media Award for career accomplishments.
Mr. Russo received his BA from Northwestern University and his MBA from Harvard University.

FanDuel gets name on Mayweather’s trunks, seeks 16th NFL team deal

Daily fantasy sports operator FanDuel has purchased branding rights on boxer Floyd Mayweather Jr.’s trunks for his fight against Manny Pacquiao on May 2.

On Thursday, EPSN reported that FanDuel had purchased the rights to have its name on the belt line of Mayweather’s trunks. FanDuel didn’t disclose how much it paid to get that close to Floyd’s crotch but the deal comes with six tickets to the fight, valued at $10k apiece, that will be given away in pairs to the winners of three upcoming fantasy contents. The winners of these contests will also receive free hotel, airfare and a meet-and-greet with Floyd himself.

FanDuel hasn’t been shy about spending its investors’ capital on pricey sports tie-ups. This week the company announced it had pushed the number of mutli-year sponsorship agreements it has reached with National Football League teams to 15 and another deal with the Chicago Bears is in the works. FanDuel’s rival DraftKings has a comparatively paltry three NFL deals.

However, the NFL’s vehemently anti-betting stance means FanDuel’s deals don’t come with the visibility FanDuel would have preferred. While FanDuel will enjoy stadium signage, radio and digital advertising, NFL spokesman Brian McCarthy told USA Today that FanDuel’s deals are similar to deals teams have struck with casinos – no NFL team logos or adverts on FanDuel’s website and FanDuel can’t identify itself as an ‘official’ team or league sponsor.

Kansas AG says Fantasy sports is not illegal in the state

Kansas Attorney General Derek Schmidt released an opinion that states fantasy sports leagues are not considered illegal lotteries under Kansas Law, because they are games of skill.

Schmidt issued the legal opinion on Friday at the request of a Kansas House member who opposes gambling. In defining fantasy sports, the proposal says they’re [fantasy sports] contests determined by the skill of the participants. Schmidt said one key element of a lottery is that chance determines the outcome.

The opinion opposed the previously published position of the Kansas Gaming and Racing Commission (KRGC).

For several years, the KRCG had interpreted the state’s gaming law and indicated on its website that “chance predominates over skill in fantasy sports leagues” and that “if a fantasy sports league has a buy-in (no matter what it is called) for its managers and gives a prize, then all three elements of an illegal lottery are satisfied.”

FanDuel and 15 NFL Teams in Multi-year Sponsorship Deal

By @TheDailyPayoff

The battle between the two elite companies in the daily pay fantasy space escalated Wednesday.
Terry Lefton of the Sports Business Journal broke the story https://www.sportsbusinessdaily.com/Daily/Issues/2015/04/22/Marketing-and-Sponsorship/FanDuel.aspx that FanDuel, just weeks after rival Draft Kings announced an exclusive deal with MLB, had signed one-year exclusive deals with 15 FL teams.
The new deal gives the biggest player in terms of participants in the growing pay fantasy space at least a marketing edge in the largest pay fantasy sport – The NFL. The 15 NFL teams joining Fan Duel were the Bengals, Colts, Packers, Bills, Eagles, Rams, Browns, Jaguars, Ravens, Buccaneers Jets, Redskins, Chargers, Lions and Texans.

Since Yahoo has an exclusive deal with the 49ers and three NFL teams are in states where paid fantasy games are illegal (Arizona, Louisiana, and Washington), it gives the New York-based company a leg up as the NFL Draft comes into focus (New England and Denver have already signed Draft Kings deals, and Kraft Sports, like ESPN and MLB, have taken equity positions with Boston-based Draft Kings).

According to Lefton’s report, last Friday, the NFL released to its teams new marketing regulations governing their deals with paid fantasy sites. The new rules essentially make daily paid fantasy sites equivalent to gambling casinos in ways clubs could market with them.

Yahoo! to launch daily fantasy sports product this summer

Internet colossus Yahoo! plans to enter the daily fantasy sports (DFS) business this summer.

After reporting an underwhelming Q1 profit of $21.2m on revenue of $1.23b, CEO Marissa Mayer announced that Yahoo! was embracing the “rising trend around daily fantasy games.” Touting the company’s 16-year history of offering season-long fantasy contests, Mayer revealed that Yahoo! believes it has created “a unique take on this [DFS] genre.”

Mayer made note of the fact that “normally, we do not announce products before launch but this has been such an area of interest for our fantasy players and our investors that we wanted to announce that we have a new daily fantasy offering in the works that will launch this summer.”

Yahoo!’s entry into the DFS arena will likely coincide with the arrival of Amaya Gaming’s new DFS product, which Amaya has pledged will be in place before the new NFL season kicks off. Both sites will provide a welcome counterweight to a market that was increasingly looking like the exclusive domain of FanDuel and DraftKings.

Howling About Fantasy Sports: Catching Up With Rick Wolf

special thanks to Joe Favorito @JoeFav

While the casual fan may think that all this “fantasy” stuff is new from a business perspective, in reality the roots of fantasy are a few decades old, and there are few who understand the history, the success, and the failures of the business better than Rick Wolf. A Fantasy Sports Trade Association Hall of Famer, Wolf has been at the front edge of many of the biggest growth opportunities in fantasy for years, and now runs a consultancy, Full Moon Sports, dedicated to helping nurture and grow businesses in the fast moving space. He is also the president of Fantasy Alarm, one of the rising brands in the space.
Wolf has also authored a three part series on how to get into the business as part of his Fantasy Alarm work.
We caught up with Wolf to get a history lesson and a look forward into what is going on in the business.
Q: When you look at potential consulting clients, how do you determine what can work and what can’t?
 
A: When I look for projects to work on, I look for two things: (1) Does this project advance the fantasy sports agenda? That is will it raise the awareness of fantasy sports or will it introduce a new area of fantasy sports that will increase the number of players. (2) How helpful can I be to what they are trying to accomplish?
Q: Where is the biggest growth area in fantasy right now for a startup?
 
A: Right now, there are a lot of “me too” start-ups in fantasy sports. Quite frankly that is great. The smartest people start-up things that will generate some revenue while they find their niche. The biggest revenue growth area is still in Daily Fantasy Sports as it has only scratched the surface. The biggest pure penetration growth for increasing the number of players is still in the “second-screen” area. Single-game free fantasy sports will be bigger than anything we have ever seen as far as participation goes.
Q: With all the growth that has occurred in the fantasy sports business in the past two years, what is the one aspect of the business that has surprised you the most?
 
A: Honestly, it has surprised me that new companies will label things that are clearly gambling as fantasy sports or that daily fantasy companies have been unable to stay away from connecting themselves to gambling by using the words “bet”, “wager” and “gambling”. Fantasy sports is a game of skill like chess.
Q: The NFL just announced teams will be able to create partnerships with pay fantasy companies for a year and then the business will be reevaluated. How do you think they will determine success?
 
A: A hedge like this is very difficult to understand. Fantasy Sports is a cornerstone of the NFL. The NFL is a member of the FSTA. By placing a time limit on it, you don’t allow partners to long-term plan and INVEST in businesses with the NFL. The reality is that the all sports leagues have so much invested in the broadcasts that they should embrace fantasy sports as deeply as possible since it DRIVES VIEWERSHIP in every way imaginable.
Q: What sport has the most potential for growth in fantasy sports?
 
A: Globally, I think the NBA has the most impact right now and is growing in Europe and Asia.
Q: Many outside the US still consider the idea of fantasy sports to be an American phenomenon. Do you see the culture changing for the business abroad?
 
A: This is an American assumption. Fantasy sports is wildly popular in England, Australia, China and Japan amongst other places. In 2009, we tried to understand this and with IPSOS-Reid studied some international markets. In England 22% of adults played fantasy soccer or fantasy cricket. This is a lot bigger than the US.
Q: How does DraftKings announced partnerships with MLB and ESPN change the landscape of pay fantasy?
 
A: The arms race between Fanduel & Draft Kings has escalated beyond dollars and cents right now. It is great for the attention on Fantasy Sports. A deal like this always depends on the large partners showing up as partners. Almost exactly a year ago, I wrote this about partnerships in Fantasy Sports.
In this case it is especially poignant. I quoted the 1949 movie, The Fountainheadfrom the 1936 book by Ayn Rand: “In all proper relationships there is no sacrifice of anyone to anyone. An architect needs clients, but he does not subordinate his work to their wishes. They need him, but they do not order a house just to give him a commission. Men exchange their work by free, mutual consent to mutual advantage when their personal interests agree and they both desire the exchange. If they do not desire it, they are not forced to deal with each other. They seek further. This is the only possible form of relationship between equals. Anything else is a relation of slave to master, or victim to executioner.”
Time will tell if it is a true partnership.
Q: What was the biggest business mistake made in the fantasy sports space?
 
A: The world pays for executions and not ideas. People who come to me often tell me they have the next disruptive or revolutionary idea for the fantasy sports space. Fantasy sports players are slow to adopt new things, so even when things are “disruptive” or “revolutionary”, it takes years for them to penetrate. Look at daily fantasy sports for instance. Snapdraft was conceptualized in 2004 (I think), but was not legal until 2006. Instant Fantasy Sports existing illegally, but had very few customers. In 2006, when UEIGA made it possible to have daily fantasy sports, the fantasy sports player was happy. Fanduel and Draft Kings have advanced the number of players quickly by spending 10s of millions on marketing. Yet, they only have 8-10% of fantasy players trying this so far.
Q: Who are some of the business people you watch in the space?
 
A: This will sound odd, but I try to objectively watch everyone. Some of the best business ideas will come to me from people I have not met or fantasy sports players.
Q: What are the biggest changes, positive and negative, that you see in the fantasy sports business coming in the next year?
 
A: There is a minor crack in the business people on the seasonal side of fantasy sports attacking daily fantasy sports because of a small group of entrepreneurs who cannot stop connecting fantasy sports to gambling when the two couldn’t be farther apart.
It is critical that we do not allow that chink in the armor to expand regardless of how the egos play their cards. The seasonal content & service providers need to realize that daily fantasy sports created an opportunity to rejuvenate fantasy sports that they should embrace. The daily fantasy sports providers need to understand that they cannot simply do as they please with the use of gambling words, misleading promotions and should be thankful for what came before them that paved the way for the existence of this genre. Both groups should also realize that there will be something coming after them that will be more popular than both and they both should be hoping for it.
So this is both the biggest positive and biggest negative depending on which way the people involved go. Right now the most powerful leaders on each side are handling this perfectly. It is the smaller companies and providers that are jockeying for position that are hurting themselves and a $2B industry.
From my vantage point, I see my life’s work in jeopardy when people do not respect each other enough to play by the rules and believe that both old and new NEED to help each other.
Lincoln said: “A house divided against itself can never stand.”
Rick Wolf is a leader in the fantasy sports industry. He is a founding Board Member and one of only fifteen FSTA Hall of Famers including Bill James, Ron Shandler, Glenn Colton and Matthew Berry. He is the Co-Host of Colton & The Wolfman every week on Sirius XM Fantasy Sports Radio. With college friend, Glenn Colton, he has won five Expert baseball titles and four Expert football titles. He currently runs the sports consultancy Full Moon Sports, which has assisted many sports companies including Topps, USA Today and FOX.

NFL and Sportradar Unite on Exclusive Stats Deal

By Frank Scandale @Fscandale @TheDailyPayoff

The National Football League and Sportradar US, a major statistics data supplier, announced today a multi-year agreement to make the global company the league’s exclusive distributor of statistics to digital outlets beginning with the 2015 NFL Season.

Sportradar US will become the NFL’s exclusive distributor for official real-time scores, player statistics and play-by-play data (Game Statistics and Information System/ “GSIS”) as well as the NFL’s proprietary Next Gen Stats.

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Ulrich Harmuth, President of Sportradar US said the deal underscores the company’s commitment to securing its spot as the top outfit in the U.S. sports data market.

“We are thrilled to partner with the NFL in developing a completely new data category that will boost the fan experience as well as improve how the NFL and its partners interact with their fans,” he said.

He explained that since entering the US market about 18 months ago when it took over SportsData LLC in Minneapolis, MN, the company has been convinced about the sports data market being a great opportunity to do “all kinds of sports data” in the future. “We believe the US sports market is the largest in the world.”
He said the company upgraded the Minneapolis headquarters and the infrastructure there as an indication of its long term commitment to its venture in the US.

He said the NHL, for example, would be one of “six or seven interesting leagues” in the US that Sportradar would be interested in pursuing down the road.

“We managed to grow quickly in the past and there will be a need to continue to grow,” Harmuth said. “The NFL is a major step for us. We are also the official statistics provider for NASCAR, so if there is an opportunity to go for further licensing deals, we know we have a compelling product…and are completely willing to invest further resources.”

Vishal Shah, VP of Media Strategy and Business Development at the NFL , explained the reason for the deal.

“Statistics are core to the fan experience, and being able to broadly deliver new, differentiated viewpoints is compelling. Next gen stats is an exciting initiative that adds tremendous breadth and depth to our sport,” he said. “The ability to partner with Sportradar US, with its focus on technology and high quality data distribution, enables the NFL bring these great experiences to the rapidly growing sports data market and our fans.”

This partnership will allow the NFL to distribute statistical data in new and innovative ways, across apps, social media platforms, and connected devices.

Next Gen Stats, the initiative first introduced in the 2014 NFL season, consists of real-time, location-based data such as speed, acceleration and distance traveled, for all players, in all games.

This unique information, alongside GSIS, will be distributed by Sportradar US to give fans a closer look into the game, and allow them to experience it in ways never seen before. Insights from Next Gen Stats also will be available for fans in-stadium, at home, and everywhere else that NFL content is consumed.

While the company said the deal will not impact the US gambling market, it will further the development of Fantasy Football.

“Fantasy Football players are constantly looking for that extra bit of insight or information that will give them the edge against their competition,” Harmuth stated. “The NFL’s Next Gen Stats will provide a whole new level of insight into player performance, strengths and tendencies. For example, data about a player’s formation location, routes and speed over time as well as his performance or record against specific players or teams, will provide fantasy sports players with unique information as they consider future player performance and their selections.”

Both the NFL and Sportsradar have said that statistics will not be shared with gambling houses in the US. Harmuth explained the company has two verticals of business – one is for media and business, the other is to serve gambling customers. In Europe, they are completely separated, he said. “In the US we only offer one vertical – the media – and no data to gambling customers.”
Asked how this might change if the regulations were loosened on sports betting in the US, Harmuth replied: “We know what we have today, so we are fully focused on media sales, and not worrying about what might happen three to five years away.”

Harmuth said his company and the NFL agreed to not disclose financial details of the deal. However, Sports Business Daily reported via industry sources that the Sportradar would pay the NFL $5 million per year in exchange for an equity stake in the company. https://www.sportsbusinessdaily.com/Journal/Issues/2015/04/20/Leagues-and-Governing-Bodies/NFL-sportradar.aspx

Sportradar US is the U.S. subsidiary of Sportradar AG, which supplies more than 800 businesses in over 80 countries with data. Headquartered in Switzerland, Sportradar has offices in more than 30 locations around the world.

Sportradar US, which until recently operated as SportsData LLC and was acquired by Sportradar AG in 2013, has been said to be the fastest-growing sports data provider in the U.S. In addition to providing official league feeds from the NFL and NASCAR, the company said it now covers more than 20,000 live events across professional football, baseball, basketball, hockey and golf events, plus collegiate football and basketball. The company provides data solutions for leading global companies such as Google, Turner Sports, IBM, Facebook and Twitter. Sportradar US is headquartered in Minneapolis and recently opened a new 20,000 square foot state-of-the-art office dedicated to collecting, processing and monitoring data as well as client support, IT and development teams.

iGaming North America 2015 Day Three Recap

The third day of iGaming North America was a successful one, especially considering it was the last day of a three day stretch in Las Vegas.  Two good moves by the organizers were the addition of the iGaming North America Awards during lunch and holding a legalization of sports betting panel at the tail end of the event, both keeping a decent number of attendees on site (and out of the casinos).

When reflecting on the three days here in Vegas, what’s clear is Fantasy Sports is an incredibly hot topic in our industry today.  Jason Robins had an entourage of people following him after his session on Day 1 and today’s Fantasy Sports session enjoyed a full house despite its early hour.

The panel, “Expectations for the Maturing Fantasy Sports Industry” featured Paul Charchian, President of the Fantasy Sports Trade Association (FSTA), a professional who has been involved in the fantasy sports industry for twenty years.

Charchian confirmed the explosive growth in Fantasy has a lot to do with the birth of Daily Fantasy Sports (DFS) thanks to industry giants Draft Kings and FanDuel.  “ESPN’s most hit area of the site is fantasy football”, pointed out Charchian.

ARENA FOOTBALL TEAM JOINS VEGAS BETTING HOUSE

By Joe Favorito @JoeFav @TheDailyPayoff

As a league on the comeback, Arena Football has to find ways to cut through the clutter to get some exposure away from their games and into the general conversation.

It’s most recent effort has it diving right one of the hottest topics in American sport off the field these days; legalized gambling.

While pay fantasy platforms like Fan Duel and Draft Kings have made big noise and big numbers the past few weeks with partnerships and new investors, the AFL and their expansion Las Vegas Outlaws have gone one step further.

The league and the team have taken advantage of the legal sports book in Nevada (the only state where sports betting is legal these days) to form a bold partnership with betting house William Hill USA.

The partnership includes live betting and active point spreads on all of the Outlaws homes games at The Thomas and Mack Center, making the AFL club the first, and only American sports team thus far to be able to take on and activate a betting partnership not tied to pay fantasy, or in the case of the NHL New Jersey Devils and NBA Philadelphia 76ers online poker.

While the AFL is not the NFL and the dollars both wagered and the risk involved is not that high, the partnership presents an interesting potential glimpse into the future of sport in America, something that places like the UK have accepted and profited from for years.

William Hill logos are widespread at the Outlaw games, both on uniforms and on the field, and the company has a kiosk on the concourse where customers can sign up for its mobile betting client, and place wagers from the stands. The risk for William Hill US is probably low given the volume expected on AFL games, but the upside on seeing how this new opportunity engages fans who are not used to in-game wagering is very much apparent, and could set a unique precedent for sports, at least in Nevada, going forward.

With the NHL looking hard at expansion into the state, it will be interesting to see if rules relax with regard to sports books on the four major leagues when games are played in Nevada. Previously when teams like the Los Angeles Lakers played limited regular season games in Las Vegas, the lines on those games were suspended. However with a growing appetite for legal gaming in addition to pay fantasy, the AFL test may change things, with the NHL gaining a first crack at seeing how mobile legal gambling could work.

Of course the arena, and the hometown hockey team, is still in the distance, but rest assured every league will be watching how engaged and how profitable the AFL’s limited but grand experiment will be this season and going forward. If it works, the league which once tried to be a perfect spring feeder league to the NFL could become even more valuable with new business off the field than it ever has been in cultivating talent on the field.

The business of gambling gets to score again.

8 Legal Challenges Of Major League Baseball’s New ‘Daily Fantasy Sports’ Partnership With DraftKings

8 Legal Challenges Of Major League Baseball’s New ‘Daily Fantasy Sports’ Partnership With DraftKings

Forbes: By Mark Edelman

Last Friday, Major League Baseball announced that it has become an investor in the “daily fantasy sports” website DraftKings — ending a nearly a 95 year period during which Major League Baseball opposed anything even roughly associated with sports gambling. It is now rumored by the Wall Street Journal that Walt Disney DIS +0.17% may join Major League Baseball as an equity investor in DraftKings as early as this Friday.

For Major League Baseball, its newest investment in “daily fantasy sports” provides a desirable opportunity to potentially profit from a rapidly emerging marketplace. Nevertheless, this investment is also fraught with eight legal challenges that Major League Baseball should address upon taking this new equity stake:

1. Does DraftKings operate in any states where all of its contests are illegal? Currently, DraftKings disallows participants from entering its games in five states where it perceives the gambling law risks as most elevated: Arizona, Louisiana, Iowa, Montana, and Washington. However, there are other states where operating “daily fantasy sports” seems to be a very high risk activity. For example, statutory law in the State of Tennessee seems to disallow contests that involve any chance whatsoever. The same may be true under Arkansas common law. Nevertheless, DraftKings (much like its rival, FanDuel) still operates in both of these states.

2. Does DraftKings do enough to block users in these impermissible states? The publicly traded sportsbook, the William Hill Co. recognizes that it is so critical that those based on U.S. soil not access their website that they use Internet Protocol Tracking Technology to prevent those based in America from even getting to the website’s front page. To ensure legal compliance in the states that clearly disallow play-for-cash fantasy sports, DraftKings may wish to implement Internet Protocol Tracking Technology to block the entirety of its website from users – thus preventing any mistake or confusion about legality of accepting money from such states.

3. Does DraftKings operate any contests that are illegal in their entirety? DraftKings currently offers ”daily fantasy sports” contests in individual sports such as golf even though these contests are based in their entirety on player performance within a single tournament. The decision to offer daily fantasy golf seems imprudent because even the Unlawful Internet Gambling Enforcement Act’s narrow carve-out for “fantasy or simulation sports” requires that the contest results emerge from accumulated player statistics in “multiple real-world sporting or other events.” A single golf tournament reasonably may not constitute a multiple events under this definition, and thus DraftKings’s version of fantasy golf should face a heightened risk of criminal challenge. (Note: as I recently told Golf.com, this problem could easily be fixed by combining two golf tournaments; however, DraftKings has simply failed to do this).

 

Full credit to Forbes.com – seen here: http://www.forbes.com/sites/marcedelman/2015/04/08/8-legal-challenges-of-major-league-baseballs-new-daily-fantasy-sports-partnership/

Augusta and Soccer, the Next Fantasy Frontiers

By Terry Lyons @terrylyons

Contributing columnist to @TheDailyPayoff

It’s early April and your March Madness bracket was busted long ago, your Kentucky Derby futures were long shots at best, and for Fantasy sports players, the NFL season is a distant memory and a deep freeze just delivered the coldest Opening Day of Baseball in recent memory.

Ballpark scenes complete with snow flurries, sleet and ice, left you less than intrigued at selecting your fantasy battery. The only thing left is either Fantasy Golf or Soccer.

NFL football, the dominant force in Fantasy Sports, is designated by 69.4% of fantasy players as their favorite faux sport, according to research compiled by industry gurus at Fantasy Sports Trade Association. In 2014, there were an estimated 41.5 million fantasy players, although those numbers are yet to reflect the millions who experimented in the Daily Fantasy Sports (DFS) craze that is upon us in 2015.

DFS has created an industry upon itself as the two leaders, Draft Kings and Fan Duel, continue to shock sports business pundits and Wall Street analysts alike with enormous private equity investments, major sports leagues taking equity stakes, and newly confirmed reports of the Walt Disney Company sinking an estimated $250 million strategic investment into a new deal that will provide ESPN with ad revenue and fantasy sports players with ubiquitous exposure to the Draft Kings brand of daily fantasy.

The glut of offerings in the fantasy (American) football and baseball point to an opportunity for entrepreneurs looking elsewhere, possibly to the truly global games of Soccer and PGA Tour golf.

From a random sampling taken the evening before The Masters, golf’s most prestigious tournament, Draft Kings daily fantasy site was offering 4,410 contests related to MLB baseball, 1,677 contests for PGA golf, 1,388 contests for NBA basketball, 1,013 games for NHL hockey and 1,081 contests for European Premier League futbol (soccer). Mixed Martial Arts – an entity to be addressed at another time – had 440 contests awaiting.

In the world of golf, the contests were all for “Salary Cap” based games where the contestant was required to pick six PGA tour professionals competing at Augusta and fit them into a lineup that did not exceed $50,000 in value. As you would expect, the salary rankings of top players, such as Player of the Year Rory McIlroy, ranked in the $14,900 range while Masters champ Bubba Watson came in at $12,200, Augusta favorite Phil Mickelson was a more affordable $9,900 while Tiger Woods came in a seemingly affordable $9,400. The range spanned to the likes of aging champions Ben Crenshaw and Tom Watson who were listed at $4,800.

The ease of picking a simple sixsome and finding a contest that attracted your $1 minimum to $5,300 maximum investment  provides a simple mechanism for sports fans to dabble in the world of DFS. This is in comparison to playing salary cap-based games in the NHL where you need to know the amount of ice time skated by the likes of Minnesota Wild defenseman Jared Spurgeon if you plan to compete against the sharks sitting in the Draft Kings’ “Head-to-Head” contest lobby.

Away from the daily offerings, traditional fantasy golf games have long been offered by Yahoo Sports, on the official site at PGATour.com and on the Golf Channel’s online site, but have fallen short in the eyes of many participants when it comes to format and prizes.

Golf Channel’s game is simple as you select a foursome, using either one or two players from various tiers of PGA pros, grouped as “A,” “B,” or “C” players. As a fail-safe, you also pick four bench players with a limit for the number of times you can use a single player, that being 10 times over the course of the full season. The Yahoo Sports golf game allows for team registration nearly all year and is geared towards having groups of players utilize the site for their own private game.

System-wide, it is impossible to catch-up to the overall leaders unless you’ve fielded a top-notch group of foursomes for each and every tournament. To try to avoid the severe drop-off of participants who cannot crack the leaders, Yahoo also carves the season into “Winter,” “Spring,” “Summer” and “Full Season” to allow for seasonal competitions. There is no entry fee, no sponsor but Draft Kings took banner ads on the site to lure potential players to their daily style of play.

Golf Channel runs a free game, sponsored by golf shoe maker Foot-Joy, that calls for participants to pick a foursome from PGA Tour players grouped in tiers with points awarded based on the money the players earn in the tournament. Again, the prize structure is weak, there’s no money prize pool and drop-off of participants over the rather long PGA Tour season is significant.

There are a number of software companies that run fantasy golf leagues, acting more as the commissioner or statistician for privately run leagues. One of the better sites is Fantasy Golf League Software which allows individual groups or “leagues” to customize their own versions of PGA Tour leagues, presumably with the traditional style of one league member being the proverbial Commissioner/Banker while acting as Judge and Jury if there are any discrepancies.

A private league run by friends of this reporter dubbed The Larry Bird Golf League is as simple as it can get. Participants name three golfers for each tournament each week and get credit for the golfer who earns the most money from each tournament’s prize pool. Once your player cashes, he’s done for the season while the other two you played remain eligible for another time.

We do some variations to keep people interested, including a special in-season competition for the Majors and even a new “Skins Game” concept to reward a Fantasy Team who is the only team in the league to pick a tourney winner. That “Skin” has yet to be cashed as of the Masters.

In soccer, the challenge of picking winners is similar to ice hockey, where a deep knowledge of every roster and every player by position (Goal-keepers, defense, midfielders and strikers (forwards) is needed in order to play intelligently.

The key difference in playing DFS soccer is that the schedule is so different than that of the NBA, NHL and MLB, with the majority of matches held on Wednesday or Saturdays. In Draft Kings’ soccer, the salary cap listed Tottenham’s Harry Kane at $10,700 and Arsenal’s Olivier Giroud at $10,300 and the lower-level roster players at $3,000. Thankfully, the figures were not calculated in Pounds Sterling.

The sharps tend to play the best players in soccer at home, but, keep in mind, most of the action on the sport of soccer is done via the High Street bookies who take action on everything from the outcome of the game to who scores the first goal. The need for salary cap style fantasy is not nearly as attractive as action on the game itself, so a smart fantasy soccer play might be better promoted to the growing American soccer audience being taught the nuances of the game by NBC Sports Network coverage.

As of yet, MLS soccer has yet to spawn much interest via mainstream fantasy players, yet interested players need not look any further than MLS.com where you are asked to build an 18-player roster with a $120 million salary cap with the offering of some $10,000 in prize money. To be eligible for prizes, a contestant must be from the 50 United States or Canada, according to site rules.

MondoGoal, a new start-up without the bankroll of Draft Kings or Fan Duel, is going “all-in” on fantasy soccer with offerings of daily cash leagues involving Premiere League, MLS, Spanish, Italian, German Bundesliga, Champions League and even plans for a special Women’s World Cup league this summer.

MondoGoal is concentrating on a more “European” and “Worldwide” audience, rather than the American fantasy audience and the start-up has partnered with some of the most well known football clubs in Europe, including FC Barcelona, AS Roma, Chelsea FC and Manchester City, among others.

Fan Duel has yet to delve into Daily Fantasy soccer or golf and is heavily promoting their association with the NBA, the league which shocked the gaming world by taking an equity stake in the company which is operating off a massive $70 million dollar raise which surfaced last September.

The step to consider from this brief round-up? After scouting The Masters this weekend and enjoying the pristine atmosphere and springlike weather of Augusta, try a daily Fantasy sports golf tournament next weekend. It’ll be a new tradition, unlike any other.

 

For further information, visit the following sites:

Golf Channel: https://fantasy.golfchannel.com/

Fantasy Golf League Software: http://www.fglweb.com/fglmain.php

MLS Soccer fantasy game: http://fantasy.mlssoccer.com/

MondoGoal: https://mondogoal.com

Link to Fan Duel $70 million investment story in WSJ: http://blogs.wsj.com/venturecapital/2014/09/02/fanduel-raises-70-million-as-daily-fantasy-sports-battle-heats-up/

Draft Kings’ Latest Moves Seek Royalty Status of Pay Fantasy

By The Daily Payoff @TheDailyPayoff

Experts will say a key factor in driving business is healthy competition.
“You want to be the Avis to their Hertz,” the late Jay Larkin, former head of Showtime Sports, once said, when referring to his network’s ability to create opportunities for boxing when going up against rival HBO. “Healthy competition makes for a great marketplace and challenges you to do better and stay sharp. Without it, you go flat.”

Perhaps the same can be said of the pay fantasy space, where competition was at its peak last week. The attacker brand in the multi-billion dollar business, Boston-based Draft Kings , put on a 48-hour splurge of competitive activity that would have made Larkin very pleased.

On Thursday it was revealed that Major League Baseball Advanced Media had renewed its investment with Draft Kings and had used that investment to push the brand forward as the league’s official pay fantasy partner.

Later on Thursday it was also learned through industry sources that the company would be the official and exclusive partner of all Major League Baseball teams. The move effectively locked out its bigger rival, Fan Duel, from a critical growth area in pay fantasy, the sport of baseball and the millions of dollars in transactions and promotion that will take place as Opening Day arrives this weekend.

It was the first time that a team or a league with an investment had moved to lock out a competitor with its clubs, making Thursday a landmark day for the brand and the business.

Then late on Friday, The Sports Business Journal broke the long-rumored story that ESPN was going to make an equity investment in Draft Kings, with a number in the range of $250 million while valuing the company at roughly $900 million. http://www.sportsbusinessdaily.com/SB-Blogs/On-The-Ground/2015/04/0403-ESPN-DraftKings.aspx

The key component of the deal, Sports Business Journal reported, will be a premium ad spend by Draft Kings across ESPN, somewhere in the range of $50 million, with lots of incentives and cross promotions factored into the deal. The official announcement will not come until May when Draft Kings announces its next round of funding.

“An affiliation with ESPN is industry redefining,” Geoff Reiss, a former ESPN executive who was in a similar position two decades ago when ESPN parent Disney bought Starwave, which became ESPN.com told SBJ in their story. “ESPN represents the largest and most consistent promotional platform in sports for daily fantasy. The only other kingmaker as far as this industry goes is the NFL.”

All this rapid news for Draft Kings is by no means the end of the road for the much larger Fan Duel business. The New York-based company received a similar investment from Comcast Corp.’s venture arm last year, and has the NBA as an equity investor as well, along with an engaged audience which some experts say is about 60 percent bigger than Draft Kings.

The company also had a huge share of the very lucrative pay fantasy space for football this past fall, and with the NFL announcing last month that teams will now be able to take on pay fantasy partners in 2015 for the first time, the competition to have affiliate partners market by market will be very heated.

By the way, Draft Kings has an investment from Kraft Sports Group as well, and has announced partnerships with both the New England Patriots and the Denver Broncos in place.

The “official” partnership with MLB for Draft Kings in no way excludes Fan Duel from pay fantasy baseball in any way either, as the data used for games can be licensed from any number of sources. It limits exposure and the use of rights and likenesses but does not mean that Fan Duel could not buy advertising on broadcasts or partner with former players on endorsement deals. Their trove of marketing dollars is very deep, which has propelled them to a leadership position in the space to date.

Despite the massive investments in both fantasy companies, multiple reports suggest neither is near profitability yet, as the space is still too new, and the dollars too small, to bring either company into the black.

“It’s the Wild West for sure, with everyone trying to position themselves for leadership in a growing space,” added Chris Lencheski, a longtime sports marketer now running the firm Phoenicia. “The hedge for all these companies is legalized wagering at some point in the future, which will lift the pay fantasy business beyond where it is. But for now it certainly is impressive what Draft Kings has done, and it will be interesting to see Fan Duel’s next moves as well.”

Officials for ESPN, Draft Kings and Fan Duel declined comment Friday, which was of course Good Friday for many, but a Great Friday for Draft Kings and their backers .

Walt Disney/ESPN to invest $250m in fantasy sports operator DraftKings

Daily fantasy sports operator DraftKings has reportedly received a $250m shot in the arm from Walt Disney Co, the parent company of sports media giant ESPN.

A possible tie-up between DraftKings and Disney was hinted at late last month. On Friday – a very Good Friday for the Boston-based DraftKings – the Wall Street Journal reported that Disney had pulled the trigger on the deal, giving the Mouseketeers up to a one-fifth stake in DraftKings. The deal would place a total value on DraftKings of around $900m.

Neither Disney nor DraftKings has yet to officially comment on the rumors. Sports Business Daily reported that the deal includes a commitment by DraftKings to spend slightly over $500m advertising its services on ESPN’s platforms over the next three years. In exchange, DraftKings would get exclusive use of much of ESPN’s fantasy content.

The news comes just one day after DraftKings announced it had expanded its partnership with Major League Baseball to become the league’s ‘official daily fantasy partner.’ Disney joins a host of venture capital firms that have placed a bet on DraftKings’ future success, including the Raine Group, Redpoint Ventures, GGV Capital and Atlas Venture.