DraftKings CEO Robins pockets more than $5 million from sale of stock

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It must be great to be CEO of DraftKings Inc.

The company disclosed late Thursday in a Form 4 filing with the Securities and Exchange Commission that Jason Robins, the online sports-betting and digital sports entertainment company’s co-founder and chief executive officer, sold 300,000 DraftKings shares on March 27.

The Class A shares were sold at a weighted-average price of $17.72, meaning Robins took in about $5.32 million. The stock was trading in an intraday range of $17.33 to $18.22 on March 27 before closing up 0.5% at $17.81.

The sale was part of a prescheduled Rule 10b5-1 trading plan adopted by Robins.

The share-sale disclosure comes less than a week after the company disclosed in its 2022 proxy statement that Robins’s total compensation for 2022 was $47.47 million, which included a $1 salary, $43.7 million in performance-based restricted stock units and $2.3 million in “all other compensation.”

Included in that category was $131,607 in Super Bowl expenses, about which the company said: “Represents the purchase of game day tickets, special events, travel and accommodations for Mr. Robins’ family members during the week’s activities.”

DraftKings’ stock ticked up 0.2% in afternoon trading. It has run up $7.48, or 65.7%, year to date, to recover nearly half of the $16.08, or 58.5%, it lost in 2022.

In comparison, the S&P 500
has gained 5.4% this year, after falling 19.4% last year.

The Form 4 said Monday’s share sales leaves Robins with about 6.15 million Class A shares of DraftKings, or about 1.4% of the Class A shares outstanding. At current prices, his stake would be worth about $116.1 million.

Robins is also the sole holder of 393.01 million Class B shares. Each class B share entitles the holder to 10 votes, while each Class A share entitles the holder to one vote.

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