Revisiting Who Is Open To Selling DraftKings Stock From SEC Filings

Posted on March 9, 2021 - Last Updated on March 10, 2021

There’s been no shortage of DraftKings stock shareholders looking to capitalize on massive gains since its IPO last year.

The company recently refiled updated information originally released in May about shareholders willing to sell all or part of their stakes:

  • The Walt Disney Co.
  • Washington Football Team owner Daniel Snyder
  • New England Patriots owner Robert Kraft
  • NHL

The company also announced its cofounders will reduce their 2021 salaries to $1, but don’t start a GoFundMe yet: their bonuses are still intact and they’re looking to sell some shares too.

The refilings come after DraftKings’ quiet period ended following its 2020 year-end report, which led the company to a new 52-week high stock price above $68 despite massive losses. The company will update shareholders and other interested parties on its plans for DraftKings Sportsbook this year and beyond at an investor day presentation Tuesday.

DraftKings stock shareholders who would sell

The refilings show up to 44.7 million shares available associated with the IPO and another 190.7 million shares from existing shareholders.

It’s important to understand these filings don’t guarantee any sales will take place. If shares are sold, DraftKings would receive no proceeds from the private transactions. Only part of the DraftKings stock listed for sale might be sold as well.

The original prospectus filed last May includes many of the same shareholders listing their entire stakes as available.

So who’s on the list?

Nearly 1 million of the shares in the 44.7 million share prospectus would be sold by NFL owners:

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

The larger prospectus includes plenty of familiar names:

  • Former SBTech owner Shalom McKenzie would sell his entire stake of 22.4 million shares.
  • TFCF Sports Enterprises, the entity that holds Walt. Disney Co’s DKNG stake, would sell its 18.7 million shares.
  • New York Knicks and Rangers owner Madison Square Garden Investments would sell its 1.3 million shares.
  • NHL Enterprises would sell its 426,385 shares.
  • The WWE would sell its 265,988 shares.
  • Kraft would sell another 2.9 million shares held by various funds.

Management, directors too

Plenty of employees and directors are open as well:

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

Any share sales from executives are locked up through April 28 of this year.

Cofounders take $1 salary but bonuses remain

The company’s three cofounders – Robins, Kalish and Liberman – all agreed to lower their 2021 salaries to $1. The pay cut is to “fully align their pay with the interests of shareholders and DraftKings’ businesses.”

Those salaries are only a small part of their compensation. All three remain eligible for other compensation including target bonuses – Robins earned $2 million while Kalish and Liberman earned $1.1 million each from that bonus last year.

They’re also still entitled to an annual equity incentive award, which is worth a minimum annual target value of $6.5 million for Robins, and $3.5 million for Kalish and Liberman.

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Matthew Waters

Matthew Waters is a reporter covering legal sports betting and the gambling industry. Previous stops include Fantini Research and various freelance jobs covering professional and amateur sports in Delaware and the Philadelphia area.

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