DraftKings signs $30 million marketing deal with ex-cofounder’s new firm amid governance concerns

DraftKings has entered a marketing arrangement that could cost the betting platform as much as $30 million across three years, directing the spend to HardScope, a media platform launched by former president Matthew Kalish after he announced his departure. HardScope will arrange promotional deals with podcasters and other influencers and will retain a commission of up to 14 % of the spend. The contract was signed six weeks before Kalish left and was cleared by DraftKings’ independent audit committee, though the committee’s members are chosen by a board in which all three co-founders, including Kalish, sit and where CEO Jason Robins wields roughly 88 % of voting power despite a small economic stake.

Governance scholar Jesse Fried called the arrangement a “big red flag,” noting the potential conflict of interest. In addition to the marketing deal, Kalish received an exit package estimated at $18 million in accelerated stock awards and continued coverage of personal expenses through 2027. The agreement arrives as DraftKings battles falling share prices, a $67 million quarterly loss, and aggressive short-selling activity targeting its stock.