ESPN NFL insider Adam Schefter was an early-stage investor in Underdog, a sports-focused prediction-market platform that was recently sold to London-based IG Group Holdings for $1.3 billion. Underdog confirmed Schefter's investment status to Front Office Sports in the wake of the acquisition.
IG Group paid $1.1 billion upfront for the website, with an additional $200 million allocated for shareholder payouts. The deal could also provide substantial future earnings, with a reported $815 million earmarked for eligible Underdog employees.
Schefter was part of an initial group of investors that raised $10 million for Underdog in 2021. His stake was described as small, and it is unclear what his exact payout from the sale will be. He has not made any subsequent investments in the company. Representatives for Schefter have not responded to requests for comment.
ESPN has a partnership with DraftKings, not Underdog. Schefter recently signed a multi-year contract extension with ESPN, reportedly keeping him with the network into the 2030s. Previously, in 2022, reports indicated he earned approximately $9 million annually from ESPN.
This investment news comes as ESPN has made several other significant moves. The network recently acquired the NFL Network in an equity deal with the league. Broadcaster Molly McGrath has been promoted from college football coverage to join the network's NFL team as a sideline reporter for NFL Network games.
Meanwhile, ESPN has also made personnel changes, recently parting ways with NFL analysts Ryan Clark and Bart Scott amid wider layoffs within the company.