ESPN senior NFL insider Adam Schefter has benefited from an early investment in the fantasy sports and prediction market company Underdog, following its recent sale to the UK-based online trading firm IG Group. The acquisition deal is valued at up to $2.15 billion, including $1.1 billion paid upfront, a $200 million earnout to shareholders, and up to $850 million contingent on future company performance. Schefter initially invested in Underdog in 2021 alongside notable figures like Mark Cuban, Kevin Durant, and Jared Goff during a $10 million fundraising round.

While Schefter’s exact contribution to Underdog’s early financing was relatively small and he has not played a role in the company’s operations since then, his stake has likely grown significantly in value. In July 2022, Underdog was valued at $485 million after raising $35 million in Series B funding, making it probable that Schefter’s early investment has at least tripled by the time of the sale. Underdog’s innovative approach to fantasy sports and prediction markets attracted strong interest from IG Group, which is expanding its presence in this sector with the acquisition.

The sale highlights the growing opportunity for investors in the sports and gaming industries, with Underdog’s business model merging elements of fantasy sports and real-money prediction markets. Schefter’s involvement alongside high-profile athletes and entrepreneurs underscores the appeal of sports betting-related startups as investment targets. Schefter also invested in Boom Entertainment, a company focused on sports and casino gambling apps, although his stake there and ongoing involvement remain unclear.

This deal marks a notable financial win for early backers in the fast-growing fantasy sports space and signals continuing consolidation by large gaming companies like IG Group. As sports media personalities like Schefter deepen their ties to emerging sports technology ventures, their portfolios reflect a blend of media influence and investment in innovative sports gaming experiences. Underdog’s sale represents a high watermark for this market segment as the industry builds momentum heading into the future.