By CultureBanx Team
- Overtime raised $100 million in its Series D funding round
- Drake, Kevin Durant and Amazon founder Jeff Bezos among others are already heavily invested in the company as it gears up to launch new leagues
Overtime, a sports media start-up for high school sports is big business as the company just raised $100 million in its Series D funding round from Liberty Media and Morgan Stanley’s Counterpoint Global team. Drake, Kevin Durant and Amazon (AMZN -0.14%) founder Jeff Bezos among others are already heavily invested in the company as it gears up to launch new leagues. The six-year-old company is making sure its players aren’t left out in the cold when it comes to compensation by providing guaranteed salaries to these young athletes.
Why This Matters: The company is a social media juggernaut with 65 million social followers and 2 billion monthly video views. It generates revenue through sponsorships, licensing, e-commerce, and media rights. Overtime has raised $250 million to date and claims over 6% of active NBA players have invested, including Durant, Carmelo Anthony, and Trae Young.
“Our investors, new and previous, see the massive growth potential of Overtime Elite and OT7, both of which have developed hyper engaged audiences, as well as the potential for future sports leagues as well” said Dan Porter, Overtime’s CEO and co-founder.
Many high school athletes hope to move on to an NCAA school. However, according to data from the NCAA, fewer than 5% of high school athletes receive a Division I athletic scholarship, and no more than 2% of the 5% will ever play pro sports.Therefore, Overtime Elite (OTE) guaranteed salaries for its players in the range of $100,000, and add 80 new league employees for its first season in September 2021.
For lower-income athletes, who disproportionately skew as Black, this compensation will allow them to monetize their talents and relieve any economic pressures they may have. Some of those hurdles include the pressure to invest in sports supplies that cost an average Black family $536.92.
What’s Next: Overtime plans to use the new capital injection to grow its two existing leagues and launch new ones. Additionally, it will pour money into e-commerce and Web3 along with investing in content around football, basketball, soccer, gaming, and sneakers.
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