Entain director Ricky Sandler to step down as Eminence prepares to liquidate shares

Entain has confirmed that Ricky Sandler, CEO of Eminence Capital, is leaving his role as a non-executive director, as the investment fund he leads is reportedly preparing to close.

The company said it will also terminate its relationship agreement with Eminence Capital immediately. The agreement was put in place when Sandler joined Entain’s board in January 2024 following an arrangement with the activist investor’s fund.

Sandler has served on Entain’s capital allocation committee for the past two years. His departure comes after reports last week that Eminence Capital, which was launched in 1999 and currently manages about $7 billion in funds, is set to shut down.

In a letter to clients, Sandler said the decision to close the fund was linked to recent returns falling short of internal expectations and investor standards. In his exit note on Entain, he said any Entain shares held in accounts and funds managed by Eminence would be “liquidated in an orderly manner” and that the process would be carried out “without any pre-determined time constraints, with the intention of maximising value realisation”.

Sandler said he was pleased to have served on Entain’s board over the past two years, noting that the company had undergone major operational changes during that period and was positioned for continued growth. He added that he had confidence in Entain’s management and board to increase shareholder value.

Entain chairman Pierre Bouchut said: “On behalf of the board, I thank Ricky for his support. Thanks to his contributions, the company is in a stronger position and is well equipped to capitalise on the many opportunities in the global sports betting and gaming market.”

Sandler’s appointment followed pressure from Entain’s activist investors, who had pushed for changes at the company. His nomination to the board was accompanied by a legally binding relationship agreement that restricted his ability to challenge management on certain matters.

His involvement with Entain became more prominent in the summer of 2023, when he issued an open letter criticizing the company’s strategy. In the letter, he described Entain’s approach of funding bolt-on acquisitions through what he viewed as undervalued shareholder capital as “illogical.”

Several months later, Entain announced the resignation of CEO Jette Nygaard-Andersen following a shareholder revolt involving several activist investors. Stella David was appointed as her temporary replacement and served as CEO from December 2023 to September 2024.

Former Scientific Games chief Gavin Isaacs later became permanent CEO but left the role after five months. David then returned as interim CEO before being appointed to the position permanently in April last year.