Just five months after selling Barstool Sports, Dave Portnoy has received the company back again. Portnoy founded the sports blog in 2003, and Penn Entertainment began its acquisition in 2020.
PENN purchased a 36% stake at $163 million during the 2020 dealings. In February 2023, Penn bought the remainder of Barstool Sports at $388 million. The deal cost a total of $551 million.
So why did Penn let go of the millions of dollars they invested over the span of three years? Well, Penn Entertainment and ESPN have entered a deal and are introducing a new platform called ESPN BET. Penn is thus scrapping the partnership with Barstool as it is ready for its next step with ESPN.
How Much Did Dave Buy Barstool Back For?
It might be a shock to believe, but David Portnoy has repurchased Barstool Sports for a total of $0. Some non-compete clauses exist in the contract, as Dave Portnoy will have to provide Penn with 50% of a future sale.
After the deal, Portnoy posted an ’emergency press conference’ video on X, formerly Twitter. He informed the world of his ownership of Barstool once again. He further commented that it is tough for Barstool to operate in a regulated world and promised never to sell the company again.
Given the clauses in the deal, it makes sense why Portnoy would never want to sell Barstool.
The joint venture between ESPN and Penn is the sports network’s first significant gambling deal since Fox closed its sportsbook. Penn sold Barstool as a part of the deal.
Penn will operate ESPN Bet; however, ESPN will promote it to its massive audience throughout its platforms. Apparently, ESPN has been trying to get into betting for quite a few years now, but fear of editorial conflicts of interest has kept it from doing so.
The deal with Penn will facilitate its new branch, and a licensing deal will give it access to betting-related businesses.
Are you excited that Portnoy is back, or do you think Barstool Sports was better off without him? Tell us in the comments below.
Recent Comments