FutureSports expands sports trading

Chicago startup FutureSports announced a new deal with MLB to create financial indexes based on the performance of the Cubs, White Sox and 28 other MLB teams using in-game statistics provided by the league.

Futures contracts with CME Group

The futures contracts will be offered by Loop-based CME Group, which operates the world’s largest derivatives exchange.

FutureSports mission statement

FutureSports co-founder Rhett Dinsdale said, 'Our mission is to evolve sports or transition sports out of the binary, sort of, entertainment realm and into the institutional risk management sector.'

“Our mission is to evolve sports or transition sports out of the binary, sort of, entertainment realm and into the institutional risk management sector.”

Binary vs. futures contracts

Binary options are mostly affiliated with prediction markets, like Kalshi and Polymarket, which offer yes-or-no wagers tied to real world outcomes. Futures contracts focus on asset price changes over time.

NHL deal precedes MLB move

The deal comes about a month after FutureSports announced a similar landmark agreement with the NHL, following a partnership with CME to help launch the indexes. Futures indexes and contracts tied to NHL teams are scheduled to launch Sept. 28.

Regulatory approvals possible

Dinsdale inferred regulatory approvals could be on deck, saying, 'I wouldn’t rule anything out.'

“I wouldn’t rule anything out.”

FutureSports founders' background

Dinsdale and FutureSports co-founder Leigh Taylforth have been courting MLB since 2022, when they started the company in Australia before relocating to Chicago.

Key investors involved

A pair of its influential investors played key roles in introducing the duo to MLB decision-makers and during negotiations, according to Dinsdale. Elysian Park and John Henry and his family office have been instrumental in helping secure the deal.

Investor connections

Elysian Park Ventures is the investment arm of the Los Angeles Dodgers’ ownership group. Henry, a legendary investment manager and commodities trader, founded Fenway Sports Group, which owns the Boston Red Sox, Liverpool Football Club, Pittsburgh Penguins and other sports assets.

Other financial backers

Other FutureSports financial backers include Cubs ownership group Marquee Ventures, trading platform Robinhood and CME.

MLB index mechanics

The MLB index, similar to the NHL index, will open at 7,500 points and fluctuate throughout a game based on real-time statistical data, as well as in-game, seasonal and championship milestones.

MLB's role in indexes

MLB is not involved in the determination, calculation or governance of indexes. And like the NHL, MLB players, coaches, umpires and staff are prohibited from trading CME FutureSports Performance Indexes baseball futures contracts.

Fenway Sports Group and Cubs silence

Fenway Sports Group and the White Sox declined to comment. Elysian Park and the Cubs didn’t respond to a request for comment.