WASHINGTON — While the local and national media are wringing their hands
over the Redskins’ lifeless performance on Sunday, the organization made another move
last week that shines a light on what may be the only
sure thing about their future right now.
Last Friday, the Redskins signed into a “fully integrated marketing agreement”
with FanDuel, the self-described market leader in one-day fantasy sports.
FanDuel — along with primary competitor
DraftKings — is the next wave of fantasy sports in America. Instead of
relying on year-long formats like most fantasy leagues, these sites provide
single-day games, paying out users within hours.
“We’re not looking to compete” with the year-long formats, says Justine Sacco, with
FanDuel. “One-day fantasy is complementary to the season-long league formats.
There are sports fans who do not play all season long, because they don’t want
to commit to that format.”
DraftKings already has partnerships in place with the New England Patriots and Pittsburgh
Steelers, two other franchises with strong traditions and fan bases. As
the arms race heats up, FanDuel signed on with the Redskins as their first
foray into the NFL.
“The Redskins are an invaluable strategic partner for FanDuel as we continue
to bring one-day fantasy football to the masses,” said FanDuel CEO Nigel
Eccles in a release last week.
Bigger still was the company’s announcement that it has entered into a
partnership with not just a handful of NBA teams, but with the league itself, an announcement made
just two days prior to the Redskins’ deal.
“Our new one-day fantasy game with FanDuel provides our fans with another way
to connect with their favorite teams and players throughout the season,” said
NBA Deputy Commissioner Mark Tatum of the agreement. “FanDuel has established
itself as the leader in the marketplace and the new game will be a great
addition to our overall fantasy offerings.”
Here’s how it all works. Essentially, the house takes a cut of games that
players play against one another, many of which offer graduated payouts to a
percentage of players who score at the top of the pool.
For those who participated on any level in the online poker boom, this may
sound quite familiar. But this type of sports gambling has not been regulated
like poker to this point, and for the major professional sports teams and
leagues to begin to buy into partnerships with these companies is no
insignificant step. It provides a legitimacy that could help
insulate the services from any future legislative crackdowns.
“We think of ourselves much more as an evolution of fantasy sports,” says
Sacco. “Whereas gambling is something completely different and illegal in most
states.”
That distinction is a fine line to walk, but it’s the difference between
government intervention and an explosively growing startup industry. Of
course, it helps that this new wave of fantasy sports is also tremendously
beneficial for the leagues themselves.
NBA
NBA Commissioner Adam Silver (second from right) announced the league’s nine-year television contract extension in October. (AP Photo/Mark Lennihan)
Just look at the NBA. Even with over half the league making the playoffs each
year, 14 teams are sent packing in April, many of which are not
competitive even now, in the season’s opening weeks (looking at you, Lakers
and Sixers). By providing the ability to invest in individual player
performances, the league can help spark interest from fans of those teams who
might otherwise tune out as the season progresses.
“What you find is that when people start playing fantasy sports in general,
they consume more sports content,” explains Sacco. “For FanDuel users, there
is a 40 percent increase in sports consumption, from 17 hours to 24 hours a
week.”
That’s enormous. With the NBA’s brand-new broadcast rights, the ability to
sell that 40 percent increase in usage to advertisers makes the product that
much more appealing — appealing enough that the leagues literally bought in.
“The NBA is now a shareholder in the company,” says Sacco. “And we are the
official one-day fantasy partner of the NBA.”
That seems to be a productive deal for both sides. But it also raises some
questions.
How can a league support a company that facilitates what amounts to,
essentially, sports gambling? With the emphasis on specific players, could
point-shaving become a personal issue, independent of team performance?
Considering the still relatively recent referee scandal involving Tim
Donaghy, which came to light in 2007, it’s a reasonable concern. With
player entry fees projected to grow to a staggering
$31 billion by 2020, there’s plenty of money in the pot to influence those
who can actually control the game’s outcome.
As these companies move deeper into the NFL, America’s biggest and most
profitable sport, Washingtonians will have a first-hand view of what that
partnership might look like and how it may shape the sport.
The Redskins did not respond to questions regarding the details of their
arrangement, or potential concerns over being affiliated with what might be
viewed as a gambling website, by press time.
Follow @WTOP and @WTOPSports on Twitter and WTOP on Facebook.
