Form 4: Kenneth Dart Discloses Flutter Entertainment Swap Position

Kenneth Dart, a 10% owner of Flutter Entertainment, disclosed a Total Return Swap referencing over 1.2 million shares.

Summary

• Kenneth Bryan Dart, a 10% owner of Flutter Entertainment plc (FLUT), filed a Form 4 disclosing a derivative transaction.
• The transaction involves a Total Return Swap referencing 1,214,188 shares of Flutter Entertainment Common Stock.
• The transaction date for the swap was March 12, 2026.
• The reference price for the swap is $109.8715 per share.
• The swap is scheduled to terminate and be cash-settled on March 2, 2028.
• Under the swap terms, Mr. Dart is obligated to pay the counterparty any decrease in the market price below the reference price and will receive any increase above the reference price.
• Mr. Dart is required to pay monthly interest to the counterparty based on SOFR and is entitled to receive payments equal to any dividends paid on the referenced shares.
• Following this reported transaction, Mr. Dart's indirect beneficial ownership of derivative securities is 6,254,378 shares.
• LBS Limited is the direct party to the swap, and Mr. Dart, as owner of LBS Limited, may be deemed to beneficially own the reported securities, disclaiming ownership except to the extent of his pecuniary interest.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral, as it is a factual disclosure of an insider's derivative position and does not inherently convey positive or negative sentiment regarding the company's operational performance or future prospects.

Positives

• The Total Return Swap allows the reporting person to participate in any appreciation of Flutter Entertainment's stock price above the reference price of $109.8715 per share.
• The reporting person is entitled to receive payments equivalent to any dividends paid on the referenced shares during the swap term.

Negatives

• The reporting person is obligated to pay the counterparty any decrease in the market price of the referenced shares below the reference price of $109.8715 per share.
• Monthly interest payments based on SOFR are required on the financing leg of the swap, introducing interest rate risk.

Risks

• Market price risk: The reporting person is exposed to potential losses if the market price of Flutter Entertainment's common stock falls below the reference price of $109.8715 per share.
• Interest rate risk: The monthly interest payments are based on SOFR, meaning an increase in SOFR could increase the financing cost of the swap.

Industry Context

StockSavvy.ai notes that Total Return Swaps are a common financial instrument used by large shareholders or institutional investors to gain economic exposure to a stock's performance, including dividends, without directly owning the underlying shares. This allows for capital efficiency and can be used for various strategic purposes, including hedging or increasing exposure.

Stakeholder Impact

• Shareholders: Provides transparency regarding a significant shareholder's economic exposure to the company's stock through a derivative instrument, which may influence perceptions of insider activity.

Key Dates

Keywords

Flutter Entertainment, FLUT, Kenneth Dart, Total Return Swap, Derivative, SEC Form 4, Insider Transaction, Beneficial Ownership, Gaming Industry, Sports Betting