SportsHero (ASX:SHO) elaborates on two-year Dugout deal

• Queensland-based SportsHero (SHO) has provided further information regarding its two-year content deal with Dugout
• The company offered clarification on its expected 750,000 views per month, saying that this will only represent a guaranteed number of views on its promotional pre-roll clips
• The company also warned that revenue from the agreement is dependent on the number of users and the amount of user engagement, and as such, there is no guarantee of revenue generation
• As consideration for the deal, SportsHero will pay $9500 a month to Dugout
• SportsHero is currently up 3.45 per cent on the ASX, with shares trading for three cents each

Queensland-based SportsHero (SHO) has provided further information regarding its two-year content deal with Dugout.

Under the terms of the deal, Dugout — which is co-owned by 10 of the world’s largest football clubs — will offer SportsHero access to its content platform, and produce daily articles for the English Premier League, La Liga, Series A and the UEFA Champions League.

In addition, Dugout will promote SportsHero via its videos, although this will only happen in Indonesia.

As per a previous announcement dated May 5, SportsHero said this is expected to guarantee 750,000 views each month. However, in today’s announcement, the company offered further clarification on this estimate, saying that this represents a total view cap on promotional pre-roll clips only.

As such, once 750,000 people — or approximately 1.875 per cent of Indonesia’s average 40 million monthly viewers — have viewed the clips, they will be removed for the remainder of the month.

These promotional pre-roll clips will be delivered across Dugout’s network and recorded by Google Ad Management (GAM), which will then deliver a report to SportsHero at the end of each month.

Further to this, SportsHero says that advertising is a major revenue generator for the company, and is directly dependent on user numbers and user engagement on the platform.

Subsequently, SportsHero has cautioned that there is no guarantee that any revenue will arise from its agreement with Dugout.

Finally, the company advised that the consideration payable to Dugout for its content will be $9,500 per month. While immediate access has been provided to Dugout’s news and archival content, the payable fees will not commence until the resumption of regular business for both SportsHero and the European football leagues.

SportsHero is currently up 3.45 per cent on the ASX, with shares trading for three cents each at 11:02 am AEST.