ESPN Ends Exclusive Deal With DraftKings Early
The exclusive deal between DraftKings and ESPN has ended in less than two months after it began. The much hyped deal was sealed last year and would have seen DraftKings committing to advertise on ESPN properties exclusively to the tune of around $200 million.
However on Tuesday Yahoo Finance reported that the biggest sports broadcaster in the US will “amend” its deal with DraftKings. According to reports ESPN is in talks with other DFS operators who are looking to promote their offering. It is obvious to outsiders that the main reason for the abrupt ending of the exclusive deal is cash problems for the beleaguered DraftKings. They are being forced to cut down on expenses as they are heavily embroiled in lengthy and costly legal battles to try and preserve their shrinking real state.
DraftKings and FanDuel are both expected to continue to cut costs wherever possible as there is no sign that relief is on the way in terms of stability and certainty as to the legal status of DFS in the US.
In an ominous sign New York Attorney General Eric Schneiderman told Showtime’s 60 Minutes Sports program that he and the DFS industry will getting to know each other for a while. This latest blow is just another in a series of moves that can well easily result in the collapse of the entire DFS industry.