NFL Locks In 22.5m Genius Sports Warrants In New Deal

Sol FH. - April 23, 2021

Genius Sports has issued 22.5 million warrants to the NFL in the new license agreement between the two parties.

The National Football League (NFL) has entered into a new partnership agreement with Genius Sports, wherein the latter issued 22.5 million warrants to the NFL. 

Genius Sports was thrilled to announce a multi-year distribution deal last week, which will see it become the official odds data source for the NFL.

To make the deal, Genius Sports made substantial cash consideration payable to the league as part of the deal. Genius Sports then agreed to 22.5m warrants, which entitles the NFL to purchase regular ordinary shares of Genius for $0.01 each. 

This is a huge deal for both parties and the warrants will be vested over the six-year term of the agreement. Upon issuance, the first 11.25 million warrants will be vested immediately.  

Each of the warrants will be issued with one share of the Genius shares, valued at $0.001 each, wherein each of the stapled shares represents a value (economic) equal to the $0.001 per share. 

For the remaining warrants, it will be up to Genius to complete their expected merger with dMY Technology Group II, a special purpose acquisition company. 

Both Parties Seek a Meaningful Partnership

Once closed, the NFL and Genius will enter an investor rights agreement, where Genius will be required to file a shelf registration statement in order to resale the warrant shares. Moreover, the NFL will receive the customary piggyback registration rights on the warrant shares. 

If the deal is not closed by April 26, or, if the merger does not take place, Genius will need to renegotiate the terms of the warrants. 


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