Jock MKT: The Stock Market for Sport
By Alan Soclof
We officially made it! NFL opening day is here with an incredible matchup between the Rams & Bills.
In honor of this big day, I have had this special (sponsored) piece lined up for a while to get everyone excited for kickoff.
Also – I could not be more confident this is the Browns year! (Disclaimer: I said this before their 0-16 season too.)
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Special Edition: Jock MKT
Over the past several years, San Francisco 49er’s HC Kyle Shanahan has consistently deployed a fantasy football owner’s worst nightmare: a Running Back By Committee (RBBC).
Unlike many teams that highlight one running back, the 49ers often find themselves sporting several consistently, leaving fantasy owners guessing who will be the star of the show that week – well, at least some are left guessing.
Ever since 2015, I have followed Kyle Shanahan closely, and have found myself over the years, (more times than not) being able to identify in what situations he would deploy a certain RB.
What week was a Jeff Wilson week? How about Jerrick Mckinnon & Raheem Mostert? Maybe even Trey Sermon?
Usually week to week and sometimes even quarter to quarter, I found myself knowing Shanahan’s next move.
Oh. Why 2015 with Shanahan? Shanahan was Offensive Coordinator of my Cleveland Browns in 2015. He had put together a 32 slide powerpoint slide on the unprecedented level of dysfunction in Cleveland and why he should be let out of his Browns contract.
What. A. Legend.
However, this incredibly odd skill was incredibly useless for so long. Sportsbooks and Daily Fantasy Sports apps were in most cases not only not legal in the states I was in, but the bets offered did not allow the (self proclaimed) Shanahan Whisperer to profit.
Thanks to Jock MKT, now I can.
Jock MKT is a revolutionary daily fantasy platform that turns sports into a stock market. AKA – my dream come true.
The platform offers live daily markets where you can buy and sell shares of athletes at any time in real time, all for real money. And yes. For the Shanahan Whisperers, even during the game!
Not only does the app enable people to put their sports knowledge to the test, but also us investing lovers can leverage our knowledge of markets, valuations, risk analysis etc.
Let me explain how the process works:
1. IPO (Initial Player Offering)
The event starts with an IPO before the first kickoff. All player shares start at $1 and are bid up by users. You can follow in real time to see where player pricing ends up. Prices generally range from $1 to $10 in the main markets.
At the end of the event, players are ranked based on their fantasy points scored. The first place dollar value is $25 and the lowest ranked players have a value of $1. The highest scoring fantasy player will have his share worth $25, second highest $20, and so on and so forth.
The profit that you make per share of a player is the difference between the final ranking value and cost @ IPO.
Therefore, if Patrick Mahomes was the highest scoring player that week & you spent $10 a share on him, you profit $15 a share or 150% on your original investment.
Easy as 1-2-3.
3. Live Trading
Part of what is so cool about Jock MKT is the live trading component. Throughout the game, the price of a player will fluctuate based on their performance and their likelihood of their final ranking. All prices are set by the market, so you can see the value of your portfolio update in real time.
If Patrick Mahomes throws a couple TDs in the first quarter, his share price could move up to $15 as there is a greater likelihood he is gunning for that first overall $25 share value ranking.
This gives you the player the opportunity to cash out on that 50% ROI on initial investment or let it ride.
Jock MKT is flexible and allows you to decide your risk profile empowering you the user to customize your experience.
4. Hedged Losses?
In sports, sometimes you win and sometimes you lose.
Jock MKT gives you serious flexibility even if the ball isn’t bouncing your way that day.
Let’s say Patrick Mahomes doesn’t have the best first quarter and throws an INT. You will likely see his price value drop to let’s say $5 due to the lower likelihood of him finishing high up on the rankings.
You could either sell his stock @ $5 a share, implying a 50% loss or you can buy more shares in Mahomes, lower your cost basis and set yourself up for a profitable 4th quarter comeback.
5. Explosive Wins
As you can see, the goal is not necessarily to choose who will score the most points but rather outperform their IPO price tag.
For example, let’s say you are confident in the revenge game narrative of Jacoby Brissett against the Indianapolis Colts and load up on his stock @ $2 a share. If he finishes the 19th highest scorer on the day, this would give him a value of $6 a share or 200% profit!
I personally feel there is great value in trying to find the no names who might be poised for a big week and loading up on them. Some 4th string WRs with some serious wheels. Jaylen Guyton? Tutu Atwell? Exactly.
6. Play how you want
Jock MKT offers mobile, web, and API trading platforms. So if you’re looking to lock into your trading desk on a Sunday afternoon you can do that, and if you want to casually wheel and deal while out at the bar you can do that too.
Now let’s break down some history to Jock MKT and some key stats on the platform before jumping into Alan’s Angle of why I think they will succeed in the sports gambling/DFS space.
Jock MKT was founded in 2017 by CEO Tyler Carlin, an MIT educated investing and sports fanatic.
The company raised its initial seed round in August ‘19 and launched the service in 2020. With continued strong momentum during the 2020 NFL season, Jock MKT raised a $10M Series A led by Left Lane Capital.
The company has used these funds to grow their team from 5 to almost 20 people, build out a plethora of new features including: the ability to short players @ IPO, several different types of contests, variety of sports, and publishing an open API.
Oh – and how does Jock MKT make money? 1-2% transaction fee per transaction. So yes, this means there is no you vs. the house set up like classic sportsbooks.
To date, Jock MKT has processed over 3.6 million user transactions and projects to 4x volume year-over-year.
As Jock MKT today is launching its 3rd NFL season, it is clear they are just getting started.
Why Jock MKT as the stock market for sports?
There have been countless startups that have tried to make a stock market for sports. I think Jock MKT will succeed due to a couple key differences from current competitors and past failures.
PredictionStrike, a company that raised $1.7M in capital in ‘21 allows you to own shares in an athlete and profit based off of market demand and player performance to player expectations. However, this model is highly reliant on liquidity and poses the question – why would you ever want to sell a share in a player you love.
Jock MKTs guaranteed liquidity with guaranteed prize pool allows you to ensure that you make money when your predictions are correct.
Football Index, a UK based “soccer stock market,” was actually more of a ponzi scheme than a stock market. Owners of the company used the invested funds to fuel growth. Therefore, when it was time for liquidity, there was not any causing the house of cards to collapse. Jock MKT’s daily liquidity and peer to peer market should give consumers confidence.
Why better than DFS?
When you think of the current daily fantasy sports market, there are a couple of issues that Jock MKT overcomes. Once the game starts in DFS, you are locked in your lineup and there no actions that you can take during the game. It is truly set it and forget it.
Additionally, another big issue in DFS is sharks. In the big contests, full time DFS professionals will put in up to 150 lineups in major contests giving them a much better chance of winning and hurting the little guy’s chances.
In Jock MKT, you can pick your spots & easily win along side the more professional players.
Why better than a sportsbook?
First and foremost the #1 differentiator between Jock MKT and sportsbooks is legality and accessibility. Currently there are only around a couple dozen states that offer sports gambling online while Jock MKT is available in 36 states.
Additionally, part of the beauty of Jock MKT is there is no “you vs. the house” set up with odds always in vegas’s favor like sports gambling. Jock MKT wants to empower you and see you win to give you the best experience on the platform. Quite the stark contrast!
Outside of these 3 key reasons, I also want to point out a couple more final points.
The foundation that the Jock MKT platform is built on, is incredibly strong and is ready for scale. Over time, I am incredibly bullish regarding the various features that the company can offer.
The engagement is also off the charts. The industry standard for being on a DFS app/sports gambling app during an event is 33 minutes. Jock MKT’s is 90 minutes, nearly 3x the length displaying strong passion from the consumer base. Also, that amount of engagement is incredibly monetizable in different ways.
As the NFL season begins this evening, I am so pumped to have Jock MKT on my radar.
If you want to join me in playing on the platform this NFL season, you can sign up using jockmkt.com/crossover or deposit with code CROSSOVER to receive 100% deposit match up to $100. Your first market will also be risk free, with losses refunded up to $100.
In The News: Change of Plans for Chobani
The Rundown: Chobani decides to forgo going public after November S-1
3 Key Points:
- Chobani was focused on going public @ around a $10B valuation
- In Q2 there were just 41 IPOs, a 73% decrease YoY
- Chobani’s revenue grew by 5.2% to $1.4B, but saw their loss quadruple to (~$59M)
Chobani made the right decision and it was easy. This stock could have found itself down 80%. Food companies never trade @ a significant multiple to sales, especially when there is no serious top line growth. For example, Oatly is trading @ 3x sales (growing 50% YoY), Kellogg ~2x sales, Campbells around 1.5x sales.
It will likely be 2-3 years before we see Chobani give the public markets another go.
- Stud GB RB AJ Dillion is Jewish & officially now my favorite NFL player
- Shoutout to my co-worker Brett whose now profile picture on Twitter is flames
- $FIGS CEO Trina Spear crushed it on Yahoo Finance a couple days ago
- Very interesting read from Barrons on 13 stocks with offer “growth, value, and momentum”
Meme of the Day
Thanks for the read! Let me know what you thought by replying back to this email. See you in your inbox every Monday and Thursday.
Disclaimer: This analysis is for educational and entertainment purposes solely and is not professional investment advice. The author of this piece and/or members of Workweek media could be invested in companies discussed.