The National Hockey League received equity from online gambling operator PointsBet as part of the agreement that named the Australian-based company as the NHL’s “official sports betting partner” on Wednesday.
A total of 43,106 PointsBet ordinary shares were allocated to the NHL to sweeten the deal. The shares were priced according to a recent 20-day trading average on the Australian Securities Exchange. Using the average, the shares are valued at $500,000 but are worth over $531,000 according to Tuesday’s closing price. According to the filing, the shares will be distributed in equal parts after 12, 36, and 48 months.
Both Companies Entwined With NBC
As its official sports betting partner, PointsBet will be authorized to use the official NHL league and team logos in its online sports betting app and marketing materials. PointsBet content will now be featured during NBC’s broadcast of NHL games.
The deal will be enhanced by the existing partnership between the league and NBC. Currently, the NHL has a ten-year broadcasting contract with NBC worth $2B. That deal expires after the 2020-21 NHL season but NBC is looking to renew the partnership “for a long time to come”. Meanwhile, PointsBet recently entered into a $500M deal to become NBC’s exclusive betting partner.
Not the First Betting Partner
The NHL opposed the legalization of sports betting for decades but the PointsBet deal isn’t the first of its kind for the North American professional ice hockey league. FanDuel, William Hill, and MGM have partnered with the NHL in the past.
The NHL is also an investor in DraftKings as it acquired shares of the company back when it was still just a private fantasy sports company. In August 2020, Sportico reported that the league also agreed to a data partnership with Sportradar in a deal that is also believed to involve equity.