It’s a big month for OPENSports. The online fantasy sports startup, backed by Mike Levy, who founded CBS SportsLine, just raised $4 million from angel investors and signed a deal with FoxSports.com, giving Fox Sports a minority stake in the property.
About "$3.4 million came from existing investors and $600,000 came from new investors," Levy told me. Levy stayed mum the stake Fox Sports is receiving, only to say it's "significant." (I'm guessing well north of25%)
Back in February of this year, Levy told me that he would focus on working with traditional networks in need of fresh fantasy sports games. If you know Levy’s history, this wouldn’t come as a surprise. Levy started SportsLine back in the Internet heyday and sold a portion of it to CBS, giving SportsLine the much-needed branding to gain traction.
In the same way, Fox Sports should provide some traffic infusion. Fox Sports on MSN gets 14 million unique monthly visitors, said Levy. Additionally, all Fox Sports Fantasy members (about half million today) will become part of the OPENSports network. “We expect to have 1 million Fantasy Football players by the fall,” said Levy.
As part of the deal, OPENSports will power the “fantasy” section for Fox Sports. OPENSports will have linkbacks on each of the fantasy pages. Fox Sports will sell the advertising on the pages and share the revenue with OPENSports about 50/50.
The new $4 million raised will go mainly toward helping OPENSports build out its product for Fox Sports.
So, how will OPENSports make money?
Levy says fantasy sports is a significant market. He estimates that CBS Sports fantasy football revenue will bring CBS $40 million this year. Of that, he estimates $24 million will come from advertising and $16 million from subscription fees (people paying to play games). Levy founded CBS SportsLine, the foundation of what is now CBS Sports, so he should have a good sense of the numbers there.
Levy is building a big fantasy business. After raising $14 million, he expects to be out in the market raising funds again. But if you're a venture capitalist seeking to get 25% of this company by making a bet, I wouldn't count on it. Levy has surpassed the VC route twice already. And, he's a happier man for it, he says.
Founder and CEO of Vator, a media and research firm for entrepreneurs and investors; Managing Director of Vator Health Fund; Co-Founder of Invent Health; Author and award-winning journalist.
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OPEN Sports Network (www.fantasylive.com), a premier producer of leading fantasy sports applications and official partner of FOXSports.com on MSN, is introducing two highly anticipated next-generation fantasy football games: Fantasy Live® Challenge and Fast Draft® Challenge. These exciting new fantasy products are being unveiled today by Mike Levy, founder and former CEO of SportsLine.com (now CBSSports.com).
Once sports fans are done drafting their season long fantasy football teams, they will be compelled to try these two exciting products that will completely transform the way they play fantasy football. Fantasy football players looking for competitive action each and every week – where they no longer have to wait through an entire season to win their fantasy league – will absolutely love these games.
Fantasy Live Challenge - Real-Time. Fantasy. Sports. This is the first-ever live substitution fantasy football game where users make unlimited, real-time roster changes - while games are in progress – during the 1:00pm ET NFL games. Fantasy knowledge combined with fast reaction time will reward users with cash prizes. All Fantasy Live Challenge games run in twenty minutes, so users have multiple chances to win every Sunday afternoon. Check it out for yourself and create or join a Fantasy Live Challenge group today! Check out our video for more about Fantasy Live Challenge | Watch Video (http://www.fantasylive.com/opinion/article/Fantasy-Live-Challenge-strategy-tips)
Fast Draft Challenge - Fast. Cash. Fantasy Games.™ This is a weekly commissioner type game for players who want action every week – and a chance to win cash – without the hard work of managing the same team all season long, especially if that team is losing. Have a live online draft on Friday with your buddies and go heads up on Sunday. Playing is simple. Users manage a team of seven players in a single week of NFL games. They assemble their team either through a live online draft or a salary cap structure. Score the most points and they could win a cash prize. With numerous options for style of play, size, price and prize, users can find a challenge that’s right for them. Get started today and create or join a Fast Draft Challenge group!
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