DraftKings grants lucrative marketing deal to cofounder's new startup amid financial struggles

DraftKings has agreed to pay up to $30 million to HardScope, a marketing company owned by cofounder Matthew Kalish, who stepped down as president in March. The deal was approved six weeks before his departure and raises concerns about corporate oversight, especially as the company's stock has fallen 44% in the past year. Critics see the arrangement as a potential red flag for short sellers.

DraftKings’ agreement with HardScope, owned by departing cofounder Matthew Kalish, was approved by the independent audit committee six weeks before his exit. The deal allows up to $30 million in payments over three years, with HardScope earning a 14% commission on brokered promotions. Kalish also received roughly $18 million in accelerated stock awards and extended benefits, including home-security and COBRA coverage through 2027. CEO Jason Robins controls about 88% of voting power despite holding only 2% of economic interest, a structure Harvard’s Jesse Fried calls a “big red flag” for governance.

The arrangement follows a smaller June 2025 agreement worth up to $600,000. DraftKings stresses fees are contingent on executed statements of work and delivered services, while Kalish notes the commission is lower than what the company pays other agencies. Still, the timing—amid a 44% stock decline and layoffs—adds scrutiny to insider dealings, potentially fueling short-seller narratives.