Fancy footwork scores Sportshero a LaLiga deal but shares drop below $1m placement price
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Investors either dislike the fact that SportsHero has raised $1 million from Asian and Australian investors, or they really dislike the fact that it’s done a deal with currently-controversial Spanish soccer league La Liga.
The stock (ASX:SHO) plunged 14 per cent to 18c at midday.
That’s 2c below the 20c issue price new investors just paid in the $1 million placement.
The money raised will go towards a new version of the app and a new cycling app.
SportsHero is a sports prediction app that gives fans an alternative to traditional betting by letting them predict the outcome of competitions and earn rewards.
The deal with La Liga, Spain’s premier soccer division, gives Sportshero the right to be the code’s only official sports betting app in Indonesia for the 2018-19 season.
It will, Sportshero says, give Indonesia’s “vast number of passionate football fans” the ability to connect over predicting the outcome of games, in return for “money-can’t-buy prizes!” such as stadium tours and team meet-and-greets.
La Liga head of marketing Gregory Bolle said the app was another way to “disrupt” how fans connected with the game.
Sportshero will get a plug on the La Liga Facebook page and it also gives them a chance to roll out their cryptocurrency: fans who win the footy tipping rounds can win coins to spend on those money-can’t-buy experiences.
La Liga is currently under fire for a separate 15-year promotional deal that would see a regular away game played — in the USA.
Spain’s players have unanimously threatened to strike if the deal is not cancelled.
Spanish Footballers Association president David Aganzo said at a news conference today the players “are not for sale” and should have been consulted.