RE:Could anyone see Scr going bankrupt? theScore will not go bankrupt;
1. Before sports betting, they generated 31.1M of revenue for the year ended 2019, however they did incur a net loss of 9.4M. The increased net loss can be attributable to the expansion of their sports betting platform.
2. Even if a company loses money every year, it doesn't necessarily mean they will go bankrupt. They will only go bankrupt if they can't pay their creditors. theScore still has a relatively healthy balance sheet, with the only major debt being the 40M convertible loan from fengate.
3. Unless I'm mistaken, I remember reading somewhere that they had a 5M line of credit that was still unused which can help them if they experience cash flow issues.
People are extremely lucky to buy the score right now. It was trading around the .7 range. Take a look at DEAC (draft kings), pointsbet, the stars group (foxbet). theScore is just following the same trajectory as the rest of the market. theScore is in a better position than other sports bettors beause they already have a strong userbase which will provide them with advertisement revenues. Everyone, more importantly, cancelling nba and nhl seasons is a 1 year temporary thing. Sports will continue forever. Overall, not too worried, but if your average cost is high, might take a while until you're seeing green.