Underdog will no longer produce original content as it refocuses on its core sports prediction market and fantasy gaming business.
The company, which popularized a form of daily fantasy that combined player lineups with prop-style bets, had spent heavily on content to help market its gaming products since its launch in 2020. Underdog produced top digital shows across football, baseball and basketball, while sponsoring several others.
An Underdog spokesperson told Awful Announcing that the company is getting out of the original content business:
“With all the cast members and crews across shows, we built something special: a highly successful content network that grew because of its unwavering authenticity and deep connection with fans. Since our founding, our mission has been to make sports more fun, and we’ve decided the best way to fulfill that mission is to focus our energy and talent entirely on our core offerings and continuing to build more and more engaging products and games for sports fans.”
In recent weeks, upheaval on The Arena drew attention to Underdog’s changing plans. The show’s original star, Gilbert Arenas, suddenly departed in the spring and began publicly plotting a relaunch. Arenas has said ownership of the original Gil’s Arena title will transfer to him later this summer. And last week, three of Arenas’ former co-hosts departed as the calendar flipped to July. A livestream dedicated to NBA free agency featured only the recently hired Skip Bayless, Brandon Jennings and Rashad McCants.
Later, former panelist Nick Young announced the crew had been “fired” and teased a reunion with Arenas. A producer on The Arena also went live on his YouTube channel to confirm the news, suggesting that not all of the show’s staff and stars would move forward with Arenas.
At its peak as a content company, Underdog worked with star talent like Arenas, Rasheed Wallace, Jared Carrabis, and even Bill Belichick. It hired its own NFL insider, James Palmer, and partnered with sports content brand Snapback. Underdog even licensed the viral sensation It Is What It Is from hip-hop stars Cam’ron and Mase.
The last shows standing were The Arena and its NFL-focused counterpart, The Arena: Gridiron, as well as Fantasy Football with Josh Norris and Hayden Winks. All three will be shuttered, effective immediately.
Going forward, Underdog will double down on its core business. On its app, Underdog offers prediction markets, pick ’em games, and daily fantasy.
A spokesperson said Underdog could explore selling the distribution channels and feeds for the shows.
Across the industry, operators have scaled back from the aggressive marketing spends that were common following the federal legalization of sports betting in 2018. Both DraftKings and FanDuel have wound down their in-house cable and digital networks, and lucrative sponsorship deals are reserved only for the biggest partners.
Reporting has shown that, aside from a handful of star hosts who are extremely effective at attracting new customers for sports betting and gaming companies, the return on investment was weak for both original and sponsored content.
About Brendon Kleen
Brendon is a Media Commentary staff writer at Awful Announcing. He has also covered basketball and sports business at Front Office Sports, SB Nation, Uproxx and more.