Entain CEO Shay Segev becomes latest big-hitter to join DAZN in big money deal

IN its relatively short history, streaming sports platform DAZN - owned by billionaire Sir Leonard Blavatnik - has gained a reputation for picking up big-hitters.

In May 2018 it signed an mammoth five-year deal for exclusive rights to screen bouts by Mexican boxing star Saul ‘Canelo’ Alvarez, the four-weight world champion and arguably the world’s top boxer.

The deal was reportedly the richest athlete contract in history, and a statement of intent for the British company which has aspirations to become the Netflix of sport.

Today it completed another unexpected big-money move, snatching the boss of betting company Entain, formerly GVC, from under the noses of a board apparently distracted by a takeover approach from Las Vegas’s MGM Resorts.

And if Shay Segev’s shock departure from the Ladbrokes and Corals owner after just six months came out of the blue, just imagine the odds on his jumping ship from a FTSE100 betting giant to a tech start-up.

But DAZN (pronounced Da Zone, kids) is no ordinary start-up. Owned by Blavatnik, the UK’s fourth richest man, it launched its mission to disrupt worldwide sports broadcasting around five years ago and now operates in more than 200 countries.

The concept is simple: instead of paying upwards of $50 to watch a one-off fight or big event by pay-per-view, subscribers pay a flat rate for access to its live coverage, archives and special reports.

The sub fee varies depending on content available: in the US, its domination of fighting sports sees it command a $19.99-monthly fee. In the UK, where competition between Sky, BT and Amazon has pushed the cost of trophy Premier League games mostly beyond reach for now, it is a more manageable £1.99.

Segev, who has agreed to serve out his six-month notice period at Entain, has been appointed co-CEO alongside acting CEO James Rushton, a company insider with almost 20 years experience who replaced chief executive Simon Denyer when he was moved upstairs last year.

The package Segev has been offered, while undisclosed, was eye-watering enough to cause Entain chair Barry Gibson to say simply: “We cannot match the rewards that he has been promised.”

DAZN’s initial focus was on fighting, but its coverage has broadened out as it roams the world spending billions to acquire elite sports rights, on everything from football, Formula One, sailing and table tennis to baseball, basketball and beach volleyball in an effort to take on established television networks.

But the global shutdown of most sports has hit hard, and it was forced to cut dozens of staff in the US and Brazil last year, and brought in Goldman Sachs to explore financing options.

Canelo, 30, was among those to part ways: having not been able to fight since November 2019 amid reported disagreements over opponents and salary, he is understood to have been released from his contract last month.

While the loss of one of boxing’s biggest stars was clearly a setback, DAZN has been quick to pick itself off the ropes with Segev’s appointment to drive forward its ‘next chapter’.

Segev himself insisted “the recent interest from MGM Resorts has had absolutely no bearing on my decision” and that he fully supported the Entain board’s decision to reject the offer.

“I will be sad to leave the company after five years but I have been offered a role which offers me a very different type of opportunity,” he said.

John Skipper, DAZN Group executive chairman, said: “In Shay, we’re adding depth and fresh expertise to the team. He is recognised as one of the leading figures in online gaming and brings vast technology and operations experience to the role as well as an impressive track record in digital transformation."

Shares in Entain were meanwhile trading 27p or 1.9% lower at 1,447.60 pence this afternoon as analysts suggested Segev’s departure increased the likelihood of MGM’s bid - which was dismissed by the board as "significantly undervalued" - eventually proving successful.

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