Red Flag Alert – Why Super Group is SUPER Risky
An opaque web of related parties with an overlay of potential fundamental fragilities.
Special thanks to FinTool ,Tenzing MEMO and Fiscal.ai, whose tools played a role in researching this report.
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You’ve not doubt heard of DraftKings DKNG 0.00%↑. And if you’re into sports gaming, FanDuel, which is owned by Flutter FLTR 0.00%↑.
But what you haven’t heard of, in all likelihood – unless you read my red flag quickie on Thanksgiving Day– is Super Group Limited SGHC 0.00%↑, a member of the SPAC class of 2022. With headquarters and its auditors in London, its biggest operations in South Africa, Canada and the Europe (most of which are in the U.K.) – and domiciled in Guernsey – Super Group has easily slipped through the cracks of coverage.
As I wrote when I first mentioned company, the Super Group story – as I see it – it’s quite a mosaic.
Based entirely on public filings that are as easy to untangle as wet yarn that has been tied into a triple knot, there are so many tentacles and moving parts – including dubious and downright seemingly secretive related-party dealings – that it’s hard to pick out just one thing to focus on.
To say the whole thing is super complex is best illustrated by this diagram of its organizational structure from the company’s 20-Fs……