JPMorgan unit buys stake in data analytics firm Kraft Analytics
Written by Finbarr Toesland Mon 28 Jun 2021
Following their recent £700m acquisition of robo-adviser Nutmeg, the asset and wealth management division of JPMorgan Chase & Co has announced they have purchased a stake in sports analysts business Kraft Analytics for an undisclosed amount. This move forms part of JPMorgan’s strategy to meet the needs of their cash-rich clients who want advice on potentially purchasing a sports team, as well supporting those customers who already own a team.
Kraft Analytics, which is owned by sports mogul Robert Kraft, has gained prominence thanks to its growing roster of high-profile clients, including the National Football League and teams throughout major American sports leagues. By analysing the massive amount of data produced by legal sports betting, JPMorgan Chase hope to increase profits at their clients’ teams.
“The biggest thing we realised is everyone who buys a sports team initially, they’re very focused on the field,” Robert Kraft told the WSJ. “Very few prioritise the business side, and this really helps to do that.”
Believed to be the first strategic investor in Kraft Analytics, JPMorgan Chase will capitalise on the strong data analysis abilities of the sports analytics firm to gain an edge over competing sports teams. The financial costs of poor, low-quality data are huge, which is one of the reasons JPMorgan Chase invested in Kraft Analytics, a firm that has a solid track record of processing and analysing sports data effectively.
According to IBM, bad data costs the US economy $3.1 trillion each year, with inaccurate data leading to countless lost working hours for staff and causing leaders to make faulty decisions. Even a relatively small increase in the quality of data can have an outsized impact on the operations of an enterprise, resulting in lower costs.