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OVERTIME RAISES $80 MILLION FROM JEFF BEZOS, DRAKE, NBA STARS AND OTHERS


THE SPORTS MEDIA VENTURE, WHICH FOCUSES ON YOUNGER FANS, IS STARTING ITS OWN
HIGH-SCHOOL BASKETBALL LEAGUE

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PHOENIX SUNS STAR DEVIN BOOKER, LEFT, IS AN INVESTOR IN A NEW FUNDING ROUND FOR
OVERTIME SPORTS.

Photo: Matt York/Associated Press
By
Sahil Patel
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 * @sizpatel
 * sahil.patel@wsj.com

April 22, 2021 6:30 am ET

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Overtime Sports Inc., which targets younger fans on digital and social
platforms, has raised $80 million in funding to pursue plans including the
launch of its own high-school basketball league, the company said. The sports
media and entertainment venture also hopes to tap the broader interest in
nonfungible tokens and sports betting.

Amazon.com Inc. founder Jeff Bezos, the rapper Drake and Reddit Inc. co-founder
Alexis Ohanian are among the investors of the Series C round, which was led by
Sapphire Sport and Black Capital. Morgan Stanley Counterpoint Global, Pelion
Capital, Blackstone Strategic Partners and more than 25 current and former
N.B.A. stars, including Devin Booker and Pau Gasol, also contributed.

Overtime is now valued at more than $250 million, according to people familiar
with the matter.

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The company in September plans to introduce its basketball league featuring top
male high-school players, called Overtime Elite. The league will also function
as a high school for roughly 30 rising juniors and seniors, who will all live in
one location and earn a minimum annual salary of $100,000 as they play and take
classes toward a high school diploma, according to the company. They will also
be able to earn money from their likenesses in marketing deals, and receive
professional training in areas such as financial literacy and media training.



Joining Overtime Elite will cost students their eligibility to later get a
basketball scholarship in the National Collegiate Athletic Association, though
they wouldn’t be prevented from going to college. The participants will be
guaranteed $100,000 each toward college tuition if they don’t pursue a career in
professional basketball, the company said.

Overtime has named a commissioner and a head of basketball operations for the
league, and plans to hire 80 employees, including about 40 to produce content.

“What we are trying to do is build an amazing media property that we feel
hundreds of millions of young people will want to watch,” said Zack Weiner,
co-founder and president of Overtime.

OVERTIME CO-FOUNDERS ZACK WEINER, LEFT, AND DAN PORTER.

Photo: Overtime Sports Inc.

Founded in 2016 by Dan Porter, a former executive at the talent conglomerate
Endeavor Group Holdings Inc., and Mr. Weiner, a former Endeavor employee,
Overtime initially gained popularity by distributing high-school basketball
highlights on social platforms such as Instagram and YouTube. The company said
it has nearly 50 million followers across its social media accounts.

Over the past few years, the company has also expanded its offerings and
business to include original shows, merchandising and live events.

Executives hope Overtime Elite generates new revenue through sponsorship,
licensing and merchandising deals as well as media rights.

The company also plans to use its new financing to invest in areas such as
nonfungible tokens, or NFTs, which have recently caught the attention of the
sports industry, and the basketball world in particular.

NFTs use blockchain technology to authenticate unique digital assets, including
art, music or even basketball highlights. Overtime’s library of highlights and
other content, which it expects to boost with the planned league, could help
create digital sports cards and tradable assets, Mr. Porter said.

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NFTs Are Fueling a Boom in Digital Art. Here’s How They Work

Nonfungible tokens, or NFTs, have exploded onto the digital art scene this past
year. Proponents say they are a way to make digital assets scarce, and therefore
more valuable. WSJ explains how they work, and why skeptics question whether
they’re built to last. Photo Illustration: Jacob Reynolds/WSJ

The company said it is also investing in content tied to sports betting at a
time when the gambling industry and sports media companies are coming closer
together.

The Series C funds will go to expand these efforts, as well as the production of
programming, including video series and franchises that can drive multiple
revenue streams, executives said.

About two-thirds of Overtime’s revenue comes from advertising, with the rest
coming from e-commerce, which grew during the pandemic as consumers spent more
time online and making purchases on digital platforms, Mr. Porter said. Earlier
this year, it hired Rich Calacci as its first chief revenue officer, a position
he held at both rival sports media company Bleacher Report and ViacomCBS Inc.’s
Pluto TV.

The company’s revenue doubled in 2020, according to executives, despite the
pause in live sports sparked by the coronavirus pandemic.

“It [the pandemic] reinforced that sports has a bigger lens than something that
has to happen on a court or field in that moment,” Mr. Porter said. “It
reinforced for us the power of having and engaging with the community, because
the community does not go away.”

MORE FROM CMO TODAY



 * Marketers Prepare for Further Change as Google Pledges Mobile-Privacy Moves
   February 17, 2022
 * A Reopening Australia Encourages Travelers to Come Take a Long Vacation
   February 16, 2022
 * FCB Names New Leadership as Global CEO Prepares to Leave February 15, 2022

Write to Sahil Patel at sahil.patel@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved.
87990cbe856818d5eddac44c7b1cdeb8



Appeared in the April 23, 2021, print edition as 'Sports Startup Overtime Raises
$80 Million.'






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