A startup backed by Alex Rodriguez and Marc Lore is looking to create a new category of sports betting focused on the long-term success of individual players.
Mojoa sports “stock market”, launched in New Jersey on Monday with the announcement that it raised $100 million nowadays.
The company, which is legally considered a sport betsplans to roll out to all states where sports betting is legal.
It initially offers shares in active NFL playerswith the intention of expanding into other sports.
Rodriguez and Lore helped provide initial support for the business but are not involved in running the business.
Co-founder of Mojo Vinit Bharara founded Diapers.com with Lore, which they sold to Amazon in 2011 for around $550 million. A new type of asset
Players gain or lose value based on their performance on the field, which can be cashed out at any time. Share prices are based on accumulated and projected gainsand users can also short players.
“When people buy that stock, that stock has what we call intrinsic value, which means it has a objective monetary value it’s not just worth what the next guy says it’s worth,” Bharara told Front Office Sports.
“It’s kind of what we see in the trading cards industry. And it’s become a big problem, I think, in America in general.
To ensure liquidity, the company acts as a market maker, seeking to balance investments and short positions to secure its fees and commissions.
Read the original article on FrontOfficeSports.com.
Have you ever wondered what your favorite players have been up to since they retired from the game? Watch the latest episode of Second Acts, a new series from Front Office Sports, here.