Sleep Number Corp. (NASDAQ:SNBR) experienced a notable uptick in its share price, gaining about 4% on Wednesday following news that NFL tight end Travis Kelce has taken an equity position in the mattress maker as part of a new collaboration.
According to a company statement reported by Reuters, Kelce will be one of Sleep Number’s largest shareholders with a stake of less than 5%. The arrangement is structured as a three-year partnership that will also put Kelce in national advertising campaigns for the brand.
The agreement combines a direct purchase of company stock with additional restricted share awards that are set to vest over the three-year term. The exact size and dollar value of Kelce’s overall stake were not disclosed by Sleep Number.
Kelce has a documented history with the brand, having slept on a Sleep Number bed since 2019 and publicly endorsing its products as early as 2020. Commenting on the new role, Kelce said becoming an investor "felt like a natural next step." He added: "This partnership reflects my confidence in where the company is headed and the growing opportunity around sleep."
This move continues Kelce’s activity in public markets. Last year he took a stake in amusement park operator Six Flags Entertainment, and his public investments have attracted heightened attention in part because of his relationship with singer Taylor Swift. The article notes that when Kelce joined activist hedge fund Jana Partners in taking a position in Six Flags last October, that stock jumped about 18%.
For Sleep Number, the partnership combines an endorsement role with an ownership position and a defined vesting schedule for restricted shares. The three-year term frames the timeline for both Kelce’s portfolio exposure to the company and his involvement in brand campaigns.
Contextual note: The company has not provided additional details on the monetary value of Kelce’s investment or how the restricted stock awards are sized within the overall equity structure.