PointsBet has agreed a deal to become the official sports betting partner of NBC Sports, while the operator has also set out plans to raise an additional Aus$300m (£165.1m/€184.4m/US$219.3m) in capital.
The five-year agreement with NBC Sports, under which PointsBet committed to a US$393m marketing spend, the operator will be incorporated in multi-platform gameday integrations across the eight NBC Sports Regional Networks in the US.
PointsBet will also become an official partner of the NBC Sports Predictor and integrate its content throughout the app, expanding the range of games on offer to users.
Exclusive PointsBet odds integrations will be incorporated into Rotoworld, NBC Sports’ fantasy and sports betting digital property, while PointsBet will also be integrated with NBC Sports’ Golfnow consumer golf brand.
PointsBet will become the exclusive provider of odds, props and trends for NBCSN and Golf Channel and their digital properties, as well as Peacock, NBCUniversal’s new streaming service, and NBC Sports Podcasts.
In addition, PointsBet’s full Spanish-language functionality will reach Hispanic sports fans via the Telemundo Deportes and Telemundo broadcast stations.
“Through the NBC Sports partnership, PointsBet gains access to market-leading linear assets which span 184m viewers and digital assets which span 60m monthly active users,” PointsBet managing director and group chief exectuive Sam Swanell said.
“These assets will act as the cornerstone of our marketing strategy and combined with our in-house technology and products, as well as our talented and experienced team, will deliver outstanding client acquisition and retention efficiency as we scale rapidly over the next five years.”
David Preschlack, president NBC Sports Regional Networks, and executive vice president of content strategy at NBC Sports Group, added: “For NBCUniversal and PointsBet, this agreement provides considerable opportunities in the fast-growing sports betting marketplace, which is unique to this extensive and robust, multi-year arrangement.
“Looking ahead, we’re also excited about the significant activation opportunities that will come to fruition as sports betting continues to proliferate across the US.”
As part of the deal, NBCUniversal, the parent broadcaster of NBC Sports, will be issued with new fully paid ordinary shares in PointsBet, representing a 4.9% ownership interest of the operator and 66.9m options maturing in five years.
This, PointsBet said, would offset the $393m marketing spend and also reduce the cash commitment over the five years of the agreement.
The 66.9m consideration options will be exercisable at Aus$13 per option, with the agreed value of the options amounting to Aus$105.3m. NBCUniversal, at any time before the options expire, can elect to receive the full value of the options.
Should NBCUniversal choose to exercise the consideration options on a cash settlement basis, PointsBet would receive an additional Aus$870.0m in funding.
However, should shareholder approval not be secured by November 28 this year, then either party could cancel the share agreement. This would mean that the full marketing spend would not be offset, while NBCUniversal would be able to terminate the entire partnership within six months.
Meanwhile, PointsBet has set out plans to generate an additional Aus$300m via a capital raising, with the aim of launching the process on September 2.
The offer price will be determined when the process begins next week, but it is anticipated that the entitlement offer ratio will be one new share for every 6.5 shares held on the date of launch.
Options will likely have an exercise price of Aus$13 each and will be exercisable until the expiry date, which PointsBet said is set to be September 30 2022.
PointsBet added that it is possible the placement could raise more or less than its target of Aus$300m.