Robinhood has teamed up with Klutch Sports Group, the firm led by LeBron James’ agent Rich Paul, in a bid to broaden its presence in the realms of sports, entertainment, and media, as announced by the companies on Thursday.
In this collaboration, Paul will serve as a strategic advisor to Robinhood, collaborating closely with CEO Vlad Tenev to pinpoint fresh partnership prospects within the sports and entrepreneurial spheres.
“We’re massive sports fans at Robinhood and we know our customers are as well,” Tenev expressed to CNBC. “Working with Rich and the team at Klutch Sports, it’s really a way to get the Robinhood brand out there to a wider audience and partner with athletes and organizations that are aligned with our customer needs.”
Paul, the founder of Klutch in 2012, represents an array of renowned sports figures, notably James. Over recent years, Klutch has broadened its scope, facilitating connections between teams, leagues, and properties with global brands for collaborative ventures.
Beyond his role at Klutch, Paul also serves on the boards of United Talent Agency and Live Nation.
“I look forward to helping guide Robinhood as they broaden their reach into new markets and spaces,” Paul remarked in a statement.
Klutch has been instrumental in linking Robinhood executives with teams, owners, and athletes as the company endeavors to transcend its tech and finance origins. For instance, Klutch facilitated a three-year jersey patch agreement between Robinhood and the NBA’s Washington Wizards in October.
Tenev noted the tangible results of the partnership, citing increased brand awareness for Robinhood across the entire Washington D.C. Metro area since the collaboration’s announcement.
During NBA All-Star Weekend, Robinhood engaged in partnerships with NBA players Draymond Green and Trae Young, as well as the WNBA’s A’ja Wilson—all represented by Klutch—in conjunction with the company’s marketing of gold investment.
Additionally, Robinhood collaborated with jewelry maker Ben Baller on a gold chain to attract attendees to the event.
Tenev highlighted the resonance between Robinhood’s narrative and Paul’s background, noting Paul’s journey from selling vintage jerseys in the Akron airport to building his business and brand.
“Robinhood embodies accessibility and entrepreneurship,” Tenev remarked.
Robinhood, renowned for its trading and investing platform, boasts of introducing millions of first-time investors to the markets. The company, positioning itself as a more accessible investment option, asserts that its user base is more racially diverse compared to traditional brokerages.
Tenev also commented on the recent surge in cryptocurrency value, attributing it in part to customers investing in ETFs that previously lacked crypto exposure.
“You’re starting to see it more mainstream and getting integrated further and further into the traditional financial system,” Tenev noted. “I think Robinhood can play a leading role in the acceleration of kind of crypto and traditional finance, merging together and making it more useful over time.”
The trading platform’s stock has surged nearly 30% this year.
