Rich Paul attends a basketball game between the National Basketball Association's Los Angeles Lakers and the Boston Celtics at Staples Center in Los Angeles on February 23, 2020.
Allen Berezovsky | Getty Images Entertainment | fake images
Robin Hood is partnering with Klutch Sport Group, the firm of LeBron James' agent Rich Paul, as the financial services company looks to expand its reach into sports, entertainment and media, the companies announced Thursday.
As part of the deal, Paul will join as a strategic advisor to Robinhood. He will work closely with Robinhood CEO Vlad Tenev to identify new partnership opportunities in the sports and entrepreneurship space.
“We are big sports fans at Robinhood and We know our customers are too,” Tenev told CNBC. “Working with Rich and the team at Klutch Sports, it's really a way to bring the Robinhood brand to a broader audience and partner with athletes and organizations that are aligned with our Consumer needs.”
Paul, who founded Klutch in 2012, represents some of the biggest names in the sport, including James. In recent years, the group has expanded to connect teams, leagues and properties with global brands to establish partnerships.
Paul serves on the boards of United Talent Agency and living nation.
“I look forward to helping guide Robinhood as they expand their reach into new markets and spaces,” Paul said in a statement.
Klutch said he has been connecting Robinhood executives with teams, owners and athletes as the company looks to expand its reach beyond technology and finance. For example, Klutch helped facilitate a three-year jersey patch deal between Robinhood and the Washington Wizards of the National Basketball Association in October.
The partnership is already bearing fruit, according to Tenev. He said awareness of the Robinhood brand has increased throughout the Washington, D.C., metropolitan area since the partnership was announced.
During NBA All-Star Weekend, Robinhood partnered with NBA players Draymond Green and WNBA Trae Young and A'ja Wilson, all represented by Klutch, on the marketing of gold investment the company.
Robinhood also collaborated with jewelry maker Ben Baller on a gold chain to help get people to the event.
Tenev said he was drawn to Klutch because Robinhood's story resonates with Paul's background.
“He built his business and his brand from nothing: selling vintage T-shirts at the Akron airport,” he said. “When you think about what Robinhood represents, it represents access and entrepreneurship.”
Robinhood, the trading and investment platform, has said it has introduced tens of millions of first-time investors to the markets. The company, which bills itself as a more accessible investment option, has said its users are more racially diverse than those at traditional brokerages.
Tenev also addressed the recent rise in the value of cryptocurrencies, attributing the rise in part to clients investing in ETFs that were previously unable to maintain exposure to cryptocurrencies.
“It is beginning to be seen more widespread and increasingly integrated into the traditional financial system,” he said. “I think Robinhood can play a leading role in accelerating the type of crypto and traditional finance, merging and making them more useful over time.”
Shares of the trading platform are up almost 30% this year.
Correction: Rich Paul is joining Robinhood as a strategic advisor. An earlier version of this story misstated his position at the company.
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