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In late August, the Pointsbet Holdings Ltd (ASX: PBH) share price soared 87% higher in a single trading day after the online betting company signed a transformational marketing deal with NBC Universal Media (NBC), making it the Official Sports Betting Partner of NBC Sports in the US.
The partnership will deliver the largest sports audience of any US media company, with 184 million viewers across 120 million households. NBC's portfolio of sports rights includes NFL, PGA Golf, NHL, Nascar and Premier League football.
The US sports betting market is still in its infancy, with some estimates projecting it will be a $US30 billion addressable market at maturity.
As part of the partnership with NBC, Pointsbet has committed to a marketing spend of $US393 million to be allocated progressively in increasing amounts over the five-year media partnership.
Despite the massive jump in the Pointsbet share price, the Saville Capital Emerging Companies Fund remains invested in the company.
Writing in the August 2020 monthly update, fund manager Jonathan Collett said he sees the deal as taking Pointsbet's position in the US sports betting market from a potential niche player to a likely key long-term player. As such, he said the "incredible surge" in Pointsbet shares in response to the announcement "would appear to be justified."
The Saville Capital Emerging Companies Funds has an outstanding track record, generating returns of 44.9% per annum since inception in February 2017. The fund runs a very concentrated portfolio, with around 90% of its capital invested in 17 stocks. Other portfolio holdings include Redbubble Ltd (ASX: RBL) shares and Class Ltd (ASX: CL1) shares.
