Michael Jordan and Mark Cuban made an investment in 2015 that brings in nearly $ 8 billion in dividends

0


Charlotte Hornets Gov. Michael Jordan and Dallas Mavericks Gov. Mark Cuban both invested in a fledgling sports company called Sportradar in 2015. Six years later, that investment could pay off.

Sportradar has generated significant revenue over the past few years and just launched an IPO on Tuesday. Early assessments suggest Jordan and Cubans could make some money, especially given the prevalence of Sportradar in sports betting.

Michael Jordan and Mark Cuban were part of a group that invested $ 44 million in Sportradar in 2015

Mark Cuban made his money as a tech-savvy businessman. It’s no surprise that he saw an opportunity with Sportradar. But Michael Jordan has also gone to great lengths to diversify his portfolio.

The Governor of the Hornets has invested in several different companies, including other tech brands such as Gigster. He became even smarter by spreading his wealth across different industries. One would expect Michael Jordan to expand beyond shoes, as Jordan Brand continues to generate revenue like clockwork.

Either way, MJ joined Cuba in a $ 44 million funding round for Sportradar in 2015. At the time, the company had already entered into partnerships with the NFL and NHL, and its data information were particularly important in fantasy sports.

“Sportradar is well positioned to be a global force in the sports data industry,” said Mark Cuban. TechCrunch at the time. “Their data scientists are amazing. “

The investment has apparently aged better and better over time. Sportradar was valued at nearly $ 3 billion last spring, and the rise in sports betting has only increased the company’s valuation.

Indeed, Sportradar launched an IPO on Tuesday. Jordan himself was even present.

Sportradar opened its IPO at a valuation of $ 8 billion and closed at a valuation of $ 7.4 billion

Michael Jordan took to Wall Street on Tuesday as Sportradar prepared to launch its IPO.

Jordan rang the opening bell after the company entered the NASDAQ, with shares selling for between $ 25 and $ 28. Sportradar raised $ 513 million as it closed on Tuesday, pushing its valuation from $ 8 billion to $ 7.4 billion.

The drop in valuation can seem daunting. However, Sportradar has seen tremendous year-over-year growth.

According to Bloomberg, Sportradar reported revenue of $ 322 million in the first sixth month of 2021, up from around $ 226.7 million in the same period last year. The company lost some profit, but that might not come as a surprise given the cost of doing business and the extra expense to account for potential losses during the pandemic.

Perhaps the IPO will help galvanize the company. Bloomberg also announced that a “private placement” of $ 159 million was to take place with the IPO.

Michael Jordan and Mark Cuban want to earn money

People visit Sportradar booth at International Sport Convention for Television and New Media Trade (Sportel) in 2016 | VALERY HACHE / AFP via Getty Images

It’s unclear exactly how much Jordan and Cuba invested in the initial funding round and how much each could have invested in Sportradar since. The company’s IPO is also worth watching for the rest of the week.

Either way, MJ and Cuban will likely make some money.

Sportradar has seen tremendous year-over-year growth. The company has partnerships with just about every North American sports league and has a lot to offer on betting platforms like DraftKings, FanDuel and others.

Cuban and Jordan understand that not all investments are winners. But the investments both made in 2015 should bear fruit in 2021.

RELATED: Mark Cuban Claimed Shaquille O’Neal Called Him ‘All The Time’ About Training The Best Frontcourt In NBA History: ‘Come And Get Me’



Leave A Reply

Your email address will not be published.