ESPN’s Adam Schefter confirmed as early investor in Underdog, prompting ethic questions

One of the most polarizing topics in sports media is sports betting. Advertisements for sportsbooks are everywhere. NFL, NBA, MLB, and even NCAA broadcasts all seem to have not-so-secret relationships with betting companies.

There is a fine line, however, between partnering with sportsbooks and creating potential conflicts of interest. A prominent NFL insider is now facing scrutiny for his involvement in the sports betting industry.

Reports indicate that ESPN’s Adam Schefter was an “early-stage investor” in Underdog, which began as a daily fantasy sports brand and has since evolved into a sports-focused prediction market. Underdog confirmed Schefter’s investment to Front Office Sports after the company reached a reported $1.3 billion valuation.

Oct 18, 2021; Nashville, Tennessee, USA; Buffalo Bills wide receiver Stefon Diggs (14) talks with ESPN NFL Insider Adam Schefter before the game against the Tennessee Titans at Nissan Stadium. Mandatory Credit: Christopher Hanewinckel-Imagn Images

Front Office Sports also reported that Schefter’s investment was relatively small. However, it reportedly could generate return of approximately 300%.

Schefter is likely not the only prominent sports figure to invest in an online sportsbook or daily fantasy company. Still, it is understandable why he is receiving particular scrutiny following the news.

Schefter is one of the NFL’s most recognizable insiders at ESPN and is arguably the face of NFL insider reporting. Many fans don’t fully believe reports or rumors until Schefter confirms them.

Because of his role, Schefter’s financial ties to a sports betting company could be viewed as a potential conflict of interest. As one of the league’s most connected insiders, he has access to information that, at least hypothetically, could influence betting markets before it becomes public.

Feb 6, 2022; Paradise, Nevada, USA; ESPN personalities Suzy Kolber (left) and Booger McFarland (center) and Adam Schefter (right) talk after the Pro Bowl football game at Allegiant Stadium. The AFC won 41-35. Mandatory Credit: Kirby Lee-Imagn Images

To be clear, Schefter has not been accused of any wrongdoing. This is simply one example of how an influential insider could face perceived conflicts of interest by investing in a sports betting company.

It remains unclear how Schefter was approached or what investment opportunity he was presented. When daily fantasy sports first emerged, they were generally treated differently from traditional sports betting before companies such as DraftKings and FanDuel expanded into sportsbooks during the 2010s.

What is clear is that Schefter benefited financially from an investment in a sports betting company. Given his prominent role in NFL media, that is likely to draw additional attention as more details emerge.