Report: Most FanDuel employees will get zero money from Paddy Power Betfair deal

[The Buzz]

According to documents acquired by Legal Sports Report that detail the two companies’ business combination, the biggest losers in the acquisition of daily fantasy sports company FanDuel by Paddy Power Betfair appear to be the company’s founders and common shareholders, who are getting zero dollars from the transaction. But FanDuel executives could make tens of millions of dollars.

From the article:

That means the DFS site’s founders — including former CEO Nigel Eccles — and most employees appear as if they will get nothing from the agreement. That list would also appear to include co-founders Lesley Eccles, Tom Griffiths, Rob Jones and Chris Stafford. All have moved on from the company.

The deal between PPB and FanDuel announced in the spring appears to be close to closing, if it hasn’t already.

The summary of the transaction is where common shareholders learned they were out of luck.

According to the document, the “aggregate preference amount payable with respect to the A Preference Shares is $543,255,315.40 plus £11,658,295.57 pounds.”

Majority shareholders used their “drag along right” to force minority shareholders to accept the deal. The dragging shareholders here were early-stage investors KKR and Shamrock Capital, who led two of FanDuel’s biggest rounds of investment.

Another document showed that current FanDuel executives could make tens of millions of dollars, including current CEO Matt King, Chief Technical Officer Robin Spira, Chief Legal Officer Christian Genetski, Chief Financial Officer Andy Giancamilli, EVP of Corporate Strategy David VanEgmond and Chief Marketing Officer Mike Raffensperger:

Read the entire summary of the transaction and the rest of the article here: https://www.legalsportsreport.com/21...g-in-ppb-deal/

[Malikbhai]

This is what happens when venture money comes into play. The founders of the company lose their command; if the initial agreements are not tight. The reason Mark Zuckerberg still controls facebook is because of the ironclad preferred shares he's got despite owning less than 30%.
Steve jobs did not have the same agreement, and was kicked out of the company he founded by the CEO he hired.

[Vargoso]

I'm guessing the guys on this list are not that mad:

For purposes of the Golden Parachute Provisions, the estimated aggregate amount of Payments the Disqualified Individuals could receive in connection with the Transaction is $6,186,814 for Mr. Genetski, $3,517,833 for Mr. Spira, $4,957,685 for Mr. Giancamilli, $11,342,688 for Mr. King, $2,601,338 for Mr. VanEgmond, and $1,693,375 for Mr. Raffensperger.

[econfox]

I know that the contract provides what must be done. However, if you are buying a business and want to retain the people who built it. Then there can be some additional compensation added that is not mandated. I just think starting off like this is bad business if you want to retain good employees or if you want to attract new talent to the company. If I was thinking about working for them and read this then I would have second thoughts about it.

[The Buzz]

FanDuel co-founder Nigel Eccles is now suing Paddy Power Betfair for "purposely undervaluing’" the company:

FanDuel’s founder didn’t make a dime when his company was acquired. Now he’s suing for millions.
https://www.recode.net/2018/8/14/176...ports-gambling

[Cash Bonus]

That's really too bad for Nigel Eccles. He's going to need all the luck he can get if he's going to sue them for millions. That's just shocking for him to say the least.

[Yscheess]

I'm guessing the guys on this list are not that mad

[rknuppel]

This makes me a little sad. I actually had a somewhat personal relationship with Nigel and Lesley dating back before they started FanDuel. Was part of their pilot program when they started FanDuel, etc... To see it explode like it did was amazing and awesome for them. I think I was the first affiliate to bring someone on board lol!!

When they left the company, I was a bit shocked. But they were ready for bigger and better things. Now to hear they aren't getting treated well by the new owners and investors just leaves a little hole in my heart.

But business is business I guess. I wish them all the luck getting the money they deserve for this awesome product.

[Sherlock]

We would like to remind you that Section 3 of the terms and conditions which govern your participation in the FanDuel Partners Program, defines an unsuitable site as any site that promotes illegal activities. Please be advised that FanDuel considers the promotion of offshore gambling websites as promotion of illegal activities. As such, FanDuel will take steps to monitor your site to ensure it complies with FanDuel's terms and conditions, and will take appropriate actions including, but not limited to, terminating your participation in the FanDuel Affiliate Program if you fail to comply with the terms and conditions. By continuing to participate in the FanDuel Affiliate Program, you represent and warrant that your site does not currently promote any illegal activities, including, but not limited to, offshore gambling.

[TheGooner]

Fanduel wrote to me today saying that they were terminating our affiliate agreement due to inactivity.

I replied back to them that we'd dropped them 2 years ago, told them so, and at the time asked to be removed from their lists.
I reminded them of their data privacy obligations - and expected written confirmation that THIS time they'd taken action.