Zero Genie

Gambling’s impending legalization in the United States has spurred a lot of movement within the industry.  What is rarer however, is a company that has been in the space for a long time but is looking to do something completely outside its traditional offerings.  But the value proposition for doing so has never been higher. That is what DraftKings announced on Friday, when it unveiled its new DRIVE by DraftKings initiative, an ecosystem of athletes, entrepreneurs, investors and sports business professionals who have teamed up with venture capital firms General Catalyst, Accomplice and Boston Seed to create what the company hopes is a unique collaboration within the sports technology community. 

DRIVE hopes to accelerate the movement of sports industry professionals into high-tech ventures and, additionally, to serve as a bridge for startups that want to innovate with sports, media and entertainment. DRIVE has two core components.  The first is the Drive Venture Studio that will create customized programs for early stage sports tech entrepreneurs. It will provide strategic resources, including access to the teams, owners, athletes and business leaders who could, eventually, use its product and bring credibility to what the startup is trying to produce.

The second component is the DRIVE Athlete Network, which will include two programs in the initiative; the Venture Internship Program (VIP), and the Entrepreneur in Residence (EIR) program. Both programs are designed to provide both active and former professional and Olympic athletes with opportunities and connections to explore careers as entrepreneurs and/or investors within the sports technology space. The DRIVE venture will launch at the DraftKings headquarters in Boston and NFL All-Pro Arizona Cardinals Wide Receiver Larry Fitzgerald will serve on its board of advisors.  

“I believe it is important that professional athletes receive the training and opportunities to diversify their skill set and better understand the opportunities that exist for them as potential investors and business owners.” Fitzgerald said in a statement. “Drive by DraftKings is the first comprehensive program designed to serve as a roadmap for athletes in this capacity. I’m honored and excited to serve as a member of the advisory board and be able to participate in what will be a transformational experience for everyone involved.”

The firm’s inaugural internship program has already drawn more than 25 athletes, including former New England Patriots lineman Matt Light and  Chicago Bulls forward Thaddeus Young, who will train with local venture capital firms to learn the industry. The program’s goals will be to provide global awareness through their business training for pro athletes, many of whom face significant financial complications when their playing careers are over, often abruptly and unexpectedly. The NBA hosted a rookie transition program this past summer and the NFLPA provides career planning services, for its current and former players, to help them bridge the financial gap between their playing career and post-career lives. 

“The DRIVE Athlete Network puts athletes at the center of everything we do, providing them with rare, real-world opportunities to embed with leading VC firms and cutting-edge tech companies,” said Rashaun Williams, DRIVE co-founder and president. “DRIVE fills a resource gap for current and former professional athletes, who despite their wealth and public fame, are often stuck on the outside looking in at the tech companies revolutionizing their own sports.”

The DraftKings will also continue growing its core business and has recently inked a multi-year partnership with Caesars Entertainment.  The company is well positioned to take advantage of the rise in legalized gambling throughout the USA. It is also considering other endeavors that could grow the sports technology space and assist athletes in their transition into post-playing career life. As more athletes are preparing for their post-career lives well before the end of their careers, the DRIVE initiative should be well received.