Barstool Sports president and founder Dave Portnoy told FOX Business' Charles Payne he doesn't believe that NBA superstar Michael Jordan getting an equity stake in online gambling platform DraftKings will help the company's long-term profitability.
"It’s a splashy move, but unless they are taking his action, he’s a notorious gambler, I don’t think it's going to help their profitability by any sense," Portnoy said during FOX Business' 'America Invests Together' virtual town hall Wednesday.
He added that he was "stunned at how quickly the stock moved" when DraftKings announced that Jordan would become a special adviser to its board of directors.
"I think it was maybe up 1 or 2% when they announced it and before I could blink it was up 16%," Portnoy noted. "I actually said after it, I don’t short stocks, it’s not my philosophy anymore, but I would’ve shorted DraftKings when it was up 16%."
According to DraftKings, Jordan will provide “strategic and creative input” to the board on “strategy, product development, diversity, equity and belonging, marketing activities and other key initiatives.”
“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur,” DraftKings founder and CEO Jason Robins said in the news release. “The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team.”
DraftKings' move to add Jordan is expected to heat up the online gambling wars with its competitors FanDuel and Penn National, the owner of Barstool Sports.
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DraftKings' stock closed at $39.90 per share, up more than 8% at the end of Wednesday's trading session.