DraftKings Director Matthew Kalish Sells 864,880 Shares via Forward Contract

What Happened
Matthew Kalish, a director of DraftKings (DKNG), disposed of 864,880 shares on September 2, 2026 through the physical settlement of a prepaid variable forward contract entered into on September 12, 2023. The settlement price on the maturity date was $24.21, so the delivered shares had an aggregate market value of about $20.94 million. An additional 10,120 pledged shares were returned to him by the buyer; no cash changed hands at settlement (the Reporting Person had received $18,718,918 when entering the contract in 2023).

Key Details

• Transaction date: September 2, 2026. Form 4 filed Sept 3, 2026 (appears timely).
• Reported disposition: 864,880 shares delivered (transaction code J — other acquisition/disposition related to derivative settlement). 10,120 pledged shares were returned.
• Settlement price used: $24.21 per share; delivered shares valued at approximately $20.94 million.
• Original contract: prepaid variable forward entered 9/12/2023; Reporting Person received $18,718,918 upfront. 875,000 shares were pledged as collateral; 864,880 were transferred at maturity.
• No additional cash was paid at settlement; the filing notes the Reporting Person retained voting rights while the shares were pledged but was obligated to pay economic dividend benefits.
• The filing does not state the Reporting Person’s total beneficial ownership of DraftKings shares following settlement.

Context
This was a derivative transaction — settlement of a prepaid variable forward — not an open-market cash sale. Such contracts involve an upfront cash payment in exchange for a future delivery of shares (or cash equivalent) determined by a formula tied to the stock price at maturity (here, floor/cap mechanics). Transaction code J denotes an "other" disposition related to a derivative settlement rather than a straightforward market sale.