Revisiting Who Is Open To Promoting DraftKings Inventory From SEC Filings

There’s been no scarcity of DraftKings inventory shareholders seeking to capitalize on huge features since its IPO final 12 months.

The corporate lately refiled up to date data initially launched in Could about shareholders prepared to promote all or a part of their stakes:

  • The Walt Disney Co.
  • Washington Soccer Crew proprietor Daniel Snyder
  • New England Patriots proprietor Robert Kraft
  • NHL

The corporate additionally introduced its cofounders will cut back their 2021 salaries to USD1, however don’t begin a GoFundMe but: their bonuses are nonetheless intact they usually’re seeking to promote some shares too.

The refilings come after DraftKings’ quiet interval ended following its 2020 year-end report, which led the corporate to a brand new 52-week excessive inventory value above USD68 regardless of huge losses. The corporate will replace shareholders and different events on its plans for DraftKings Sportsbook this 12 months and past at an investor day presentation Tuesday.

DraftKings inventory shareholders who would promote

The refilings present as much as 44.7 million shares out there related to the IPO and one other 190.7 million shares from current shareholders.

It’s necessary to know these filings don’t assure any gross sales will happen. If shares are bought, DraftKings would obtain no proceeds from the non-public transactions. Solely a part of the DraftKings inventory listed on the market may be bought as effectively.

The unique prospectus filed final Could consists of lots of the identical shareholders itemizing their whole stakes as out there.

So who’s on the checklist?

Almost 1 million of the shares within the 44.7 million share prospectus can be bought by NFL house owners:

  • Kraft is promoting the 408,634 shares held by JAK II LLC and Two R LLC.
  • Snyder’s Landing 2 LLC lists its whole stake of 510,656 shares.

The bigger prospectus consists of loads of acquainted names:

  • Former SBTech proprietor Shalom McKenzie would promote his whole stake of twenty-two.4 million shares.
  • TFCF Sports activities Enterprises, the entity that holds Walt. Disney Co’s DKNG stake, would promote its 18.7 million shares.
  • New York Knicks and Rangers proprietor Madison Sq. Backyard Investments would promote its 1.3 million shares.
  • NHL Enterprises would promote its 426,385 shares.
  • The WWE would promote its 265,988 shares.
  • Kraft would promote one other 2.9 million shares held by numerous funds.

Administration, administrators too

Loads of workers and administrators are open as effectively:

  • CEO Jason Robins would promote 244,419 of 16.6 million shares.
  • President of DraftKings North America Matt Kalish would promote 543,936 of 6.3 million shares.
  • President of World Know-how and Product Paul Liberman would promote 403,054 of 6.9 million shares.
  • Director Harry Sloan would promote his 3.7 million shares.
  • Director Woodrow Levin would promote 276,419 of 381,149 shares.

Any share gross sales from executives are locked up by April 28 of this 12 months.

Cofounders take USD1 wage however bonuses stay

The corporate’s three cofounders – Robins, Kalish and Liberman – all agreed to decrease their 2021 salaries to USD1. The pay lower is to “totally align their pay with the pursuits of shareholders and DraftKings’ companies.”

These salaries are solely a small a part of their compensation. All three stay eligible for different compensation together with goal bonuses – Robins earned USD2 million whereas Kalish and Liberman earned USD1.1 million every from that bonus final 12 months.

They’re additionally nonetheless entitled to an annual fairness incentive award, which is price a minimal annual goal worth of USD6.5 million for Robins, and USD3.5 million for Kalish and Liberman.