Robert Fishman: You called out how you’re looking for more efficiencies around not renewing certain team league and media rights going forward. I’m just wondering if you can expand upon these different relationships and maybe how they’ve changed over the past year or two since you first signed the deals, now that some of the other OSB players have pulled back.
Jason Robins: Yes, I think what you’re describing is one of the many efforts around the Company aimed at becoming more efficient. And obviously, marketing being a big expense category, team and league deals being a big expense category, we feel there’s room there. We’ve had a number of partners that have been very constructive and have agreed to reductions that would make these deals efficient in a way that we need them to be. And there’s others that we will be discontinuing when the deals come up and have discontinued as they’ve come up over the past year. So it’s really been a mix. There’s been a lot of really great partners, though. They recognized that the market’s changed, have said, “Look, we want long term to be in business with DraftKings.
And we realize that this is not an efficient part of the portfolio right now, and we need to rework it.” And there have been others that we’ve had to unfortunately discontinue the deals with. So it will be a mix of things, but it’s really part of an overall effort that we have to be more efficient as a company. And I think there is an opportunity in this category to get even better.
Robert Fishman: If I could just ask one quick follow-up. Any update you’d care to make about the future partnership with Disney? And whether the relationship has changed at all since the early days since Bob Iger is back?
Jason Robins: No. I mean we’ve continued to have a great relationship with Disney. ESPN, Jimmy Pitaro and his team have been great partners. So, we’ve really enjoyed that relationship, gotten a lot out of the partnership. And we always talk to our partners about ways that we can improve and extend and grow the relationship. And Disney and ESPN have been a great partner thus far.
Operator: Our next question comes from Clark Lampen with BTIG. Your line is open.
Clark Lampen: I’ve got just one for Jason Park. Jason, if we assume you guys are finishing ’23 with, I guess, let’s just say, it’s a wide range, $600 million to $800 million of cash, and you’re going to be at that point, a lot closer to breakeven on a cash flow basis, does it make sense to be a little bit more aggressive with cash usage or explore debt financing options in a market where so many of your competitors are now leaning out, at least on the sports betting side and you’re past the point of having to illustrate to the market that you won’t need to raise capital just to remain a going concern?
Jason Park: Yes, I appreciate the question, Clark. Yes, just to clarify, I would not say that we’re like $600 million to $800 million. I would say, greater than $700 million ending 2023. So maybe $700 million plus is probably a better way to think about it. Yes, and look, I think the most important thing is we’re in a great place where we can just focus on operating the business, finding efficiencies, not having to worry about any type of financing needs. And in terms of broader questions around debt’s role at DraftKings, we’ll continue to evaluate the entire capital structure, obviously, the macro environment on potential instruments like that. And we’ll come back to you if anything comes to fruition.
