You don’t have to be a fan of Dan Le Batard to celebrate Tuesday’s news that DraftKings is investing $50 million in The Dan Le Batard Show with Stugotz and Meadowlark Media. Another company chose to get into the interesting business. That is good news for any content creator.
As a fan of the show, I was elated to read the news when it first dropped. A little over 24 hours later, I am still happy the Le Batard crew’s gamble to leave ESPN paid off. My elation has turned to optimism with a side of “wait and see” though.
Companies getting involved in the content business is good news. Companies investing in established products and then changing the content to fit their message? That’s not so great.
I wouldn’t say that is what I think DraftKings will do to Dan Le Batard, Stugotz, and the Shipping Container. It is a worry that lives in the front of my mind though. I get the show, but the second the show becomes more picks than actual conversation, I’m out.
Gambling is a trend sports radio has to embrace if the format is going to continue to thrive. My question has always been ‘is sports radio embracing gambling at a rate considerably faster than the population actually is’? Are shows more into gambling content than the actual audience is?
Jeremiah Crowe, program director of KNBR in San Francisco told me that the embrace of gambling by sports radio reminded him of his days in Bristol. While with ESPN Radio, the staff was told to treat fantasy sports in the exact opposite way. It was a fad. Niche talk was reserved for weekend shows and podcasts and that was good enough.
Crowe says gambling is different though, because laws had to change for sports gambling to enjoy its current boom. It means plenty of these companies are now in the market for the very first time.
“This time around with sports gambling, everyone is diving in head-first because of the huge advertising blitz,” he told me in an email. “You have the likes of DraftKings, FanDuel, Caesars Ent, MGM, etc (not to mention hundreds of local/regional casino resorts) all battling for impressions, ad inventory and the all-important ‘install base’ for their apps. Specifically DraftKings & FanDuel are masters of the universe, as millions of people installed those two apps BEFORE the major states began to legalize sports gambling. That’s an insane head start to have on everyone, especially the casino operators limited to Nevada for the better part of a century.”
Forgive the pun, but Crowe doesn’t see embracing this money and these advertisers as a gamble. It is just good business in his mind.
“Sports radio talent with a national brand are smart to push their proverbial chips to the middle here, because the big advertising/endorsement money is likely already inside their buildings (as opposed to smaller fantasy & podcasting opportunities), not to mention the much younger audience that is engaging with these gaming operators on a daily basis. We’re not betting on sports gambling content at that point, it’s a no-lose proposition.”
I am not saying that I know better, nor am I saying that Jeremiah is wrong. His points make a lot of sense. But are the financial numbers blinding the industry to the potential for the bottom to fall out? It’s easy to draw a parallel between gambling and drugs. Sure, there are people that are passionate about them, but a much larger part of the audience has never done them and many never will. If Dan Le Batard or any other talent who’s built their reputation and fanbase on something other than gambling starts working in talk about spreads and money lines, doesn’t that alienate the people that made them popular enough to invest in in the first place?
Gavin Spittle of 105.3 in Dallas told me I am focusing on the wrong word in the phrase “sports betting content.” The numbers don’t have to be the content.
“We can use this information to our advantage,” the Dallas PD told me. “I think sports betting has the stigma of just reading spreads and making predictions. The evolution is tremendous as far as various information. It’s an amazing show prep tool when used correctly. Once again, the focus is on good content and analytics if used right can help fuel that content.”
Gavin also says that any concern about DraftKings trying to change what Dan Le Batard does is overblown.
“[DraftKings] are partnering with the show for a reason. They want to be a part of quality content. I think DraftKings is really smart in their partnerships. As is FanDuel, who we have a partnership with. They are highly visible and much of their content becomes organic.”
Crowe agrees. He doesn’t think DraftKings has to be shy about shoehorning its message in LeBatard’s show, but he also thinks the company is smart enough to know it doesn’t need to do business that way.
“Dan’s the perfect talent to try new advertising models with because he’s great at making ad integrations funny & entertaining. In a way, if the copy comes across corny or over-the-top, he’ll be brutally honest and crush the script live on the air…but in a good way that will create a memorable moment that ADDS value to the client and agency. Advertisers want on-air talent to buy into the ‘ad-lib’ mentality where their message seamlessly fits into the flow of a show. He’s the perfect fit for DraftKings in every regard, mainly because he doesn’t fit the formulaic and decades-old ‘dive-in, reset, tease, hit the clock’ approach preached by all big box corporate operators. I’d think Dan and his crew will thrive in the DraftKings ecosystem where pushing the boundaries IS the mission statement.”
When the new partnership was announced, Dan Le Batard told The Miami Herald “The thing that I chose was freedom. Every time I’ve negotiated anywhere was for freedom, not money.”
That sets my mind at ease, as do the points made by both Gavin Spittle and Jeremiah Crowe. Still, I don’t think it is unfair to wonder if at some point, DraftKings will flex its monetary muscle.
Demetri Ravanos is a columnist and features writer for Barrett Media. He is also the creator of The Sports Podcast Festival, and a previous host on the Chewing Clock and Media Noise podcasts. He occasionally fills in on stations across the Carolinas in addition to hosting Panthers and College Football podcasts. His radio resume includes stops at WAVH and WZEW in Mobile, AL, WBPT in Birmingham, AL and WBBB, WPTK and WDNC in Raleigh, NC.
You can find him on Twitter @DemetriRavanos or reach him by email at DemetriTheGreek@gmail.com.
