ESPN drops exclusive advertising partnership with DraftKings

2021年11月14日 by 没有评论

Night net null Baseball Basketball MLB NHL NBA null In the months since daily fantasy sports blitzed mainstream media with an aggressive marketing campaign, DraftKings, one of the industry's top brands, had enjoyed a lucrative advertising partnership with ESPN as the network's "official daily fantasy sports offering."According to Yahoo Finance, that relationship ended this week when ESPN severed ties with the embattled company barely a month into the exclusive deal, which was announced in June and went into effect in January. The move is perceived as a cost-cutting measure initiated by DraftKings, the report said, as it attempts to shift resources toward fighting its mounting l

egal battles. MORE: Early 2016 fantasy rankings: running backsThough terms of the contract were not disclosed at the time, it's believed the partnership was intended to be multiyear. ESPN had become one of the daily fantasy sports industry's greatest enablers as it sold ads to both DraftKings and its main competitor, FanDuel, in the fall, when both companies committed more than $200 million on television commercials. But DraftKings reportedly entered into an exclusive partnership with ESPN on Jan. 1 that included "branding and promotional opportunities across multiple ESPN and DraftKings’ platforms including integration into digital properties and television programming."MORE: Report: Payment processor to stop working with DFS clientsIn October, with both companies reaping the benefits of their advertising crusade, it became public that a DraftKings employee had won $350,000 in a contest on FanDuel. The revelation sparked concerns about insider trading and questions over whether daily fantasy sports contests should be considered illegal gambling.A half-dozen states have since introduced legislation to ban the games under gambling laws, while others are pursuing more stringent regulatory measures.ESPN temporarily suspended running DraftKings and FanDuel for a three-day span in October, but otherwise had justified its relationship with the companies that continued to spend millions in advertising dollars. The same was true with sports leagues like the Night net — which strictly opposes gambling — or NBA, that also forged multi-million dollar partnerships with DraftKings, FanDuel, or both.ESPN, DraftKings or FanDuel did not immediately respond to requests for comment.