Tauranga tech business strikes million-dollar deal in lucrative US sports market

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1 NEWS

A Tauranga tech business has struck a million dollar deal in the lucrative American sports market.

The makers of app Drop It have had their product snapped up by the NBA's Phoenix Suns.
Source: 1 NEWS

The makers of phone app DROPIT have had their product snapped up by NBA franchise the Phoenix Suns. 

The  auction-style app, which Kiwi Peter Howell and his brother came up with in 2015, keeps fans entertained between quarters of basketball games.

DROPIT allows users to reverse bid on products live during sports events. 

A sale starts at market rate, then drops rapidly in price. The sale is made once a bidder in the audience decides that's the amount they're willing to pay.

The app launched in New Zealand with success, prompting the makers to try and break the world's biggest consumer market.

"We were just doing the old Kiwi-style picking up the phone and talking to a hundred people and get most of them saying 'no'," Peter Howell, DROPIT co-founder told 1 NEWS.

But their persistence paid off. The brothers have secured a lucrative, three-year contract with the Phoenix Suns in the multi-billion dollar industry of the NBA.

"We managed just to get through to the right guy at the Suns, spent about three months selling the concept to those guys. And the Suns are really innovative, they're always looking for new things," Mr Howell said.

Dan Costello, chief commercial officer for the Phoenix Suns said they "saw some value with what they bring to our game day experience, and we think our fans are actually going to love their offering and their app".

For confidentiality reasons, 1 NEWS can't report how much the deal is worth, as DROPIT is now in talks with Orlando Magic the Miami Heat and the LA Lakers, the latter worth an estimated $3 billion.

Last year DROPIT cracked a contract with the San Francisco 49ers in gridiron's NFL. But the Tauranga company's latest success is understood to be worth much more.

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