Image via Front Office Sports
ESPN NFL insider Adam Schefter has been confirmed as an early-stage investor in sports gaming company Underdog as the company moves toward a potential sale valued at up to $2.15 billion.
According to multiple reports, Underdog confirmed Schefter’s investment after news emerged that the company is being acquired by U.K.-based IG Group. The proposed transaction is structured at up to $2.15 billion, including an upfront payment, potential earnout provisions for shareholders, and additional performance-based compensation for eligible employees.
Schefter reportedly participated in Underdog’s 2021 funding round alongside several high-profile investors, including Mark Cuban, Kevin Durant, and Jared Goff. Sources cited by Front Office Sports described Schefter’s stake as a relatively small investment, adding that he has not been involved in the company’s operations since making the investment.
The revelation has renewed discussion about the growing relationship between sports media personalities and sports betting companies. While there is no indication Schefter violated any ESPN or league policies, critics have questioned whether financial interests in gaming companies create the appearance of a conflict for journalists who regularly report market-moving NFL news.
This is not Schefter’s first disclosed investment in the sports gaming industry. In 2021, he was also announced as an investor in Boom Entertainment, a company that develops sports betting and casino gaming technology.
The acquisition represents another major milestone for Underdog, which has grown from a daily fantasy sports platform into a significant player in prediction markets and sports gaming.
Key Takeaways
- Adam Schefter was confirmed as an early investor in Underdog.
- IG Group is acquiring Underdog in a deal worth up to $2.15 billion.
- Schefter’s investment reportedly dates back to the company’s 2021 funding round.
- Sources say Schefter has had no operational role with Underdog beyond his investment.
- The news has sparked renewed debate over potential conflicts of interest involving sports media and gambling companies.
