Barstool Sports Founder Dave Portnoy Discusses Impact of ESPN’s Joint Venture Deal with PENN Entertainment
Dave Portnoy, the founder of Barstool Sports, recently joined ‘Varney & Co.’ to share his thoughts on ESPN’s joint venture deal with PENN Entertainment and how it will impact his role in the company. Portnoy expressed his excitement about the deal, stating that it ensures the longevity of Barstool Sports for another 20 to 30 years.
In a surprising turn of events, Portnoy revealed that he initially sold the company for around $500 million but bought it back for just $1 when the PENN Entertainment-ESPN deal was announced. This move signifies Portnoy’s confidence in the partnership and his commitment to Barstool Sports’ future success.
PENN Entertainment, a prominent casino-and-sports gambling company, made its first push towards expansion in 2020 by acquiring a 36% stake in Barstool Sports for $163 million. Over the course of 2021, PENN launched the Barstool Sportsbook mobile app in 12 different states, expanding its reach in the sports betting market. In February 2023, Penn acquired the remaining stake in Barstool Sports for $388 million.
To conclude its partnership with Barstool, PENN Entertainment struck a 10-year $2 billion deal with ESPN, agreeing to rebrand the Barstool Sportsbook as “ESPN Bet.” While Portnoy expressed his respect for the PENN team, he acknowledged that the regulated industry might not be the best fit for Barstool Sports’ unique content.
Portnoy emphasized that the deal allows Barstool Sports to regain its freedom of expression, highlighting the platform’s ability to be authentic and unapologetic. He stated, “For the first time in forever, we don’t have to watch what we say, how we talk, what we do. It’s back to the pirate ship. By the way, I’m never going to sell Barstool Sports. Ever.”
During his appearance on ‘Varney & Co.,’ Portnoy also discussed the challenges Barstool Sports faced in entering the gambling industry. He mentioned the difficulties associated with regulations and the potential issues that can arise from outspoken content creators like himself.
Ultimately, this joint venture deal between ESPN and PENN Entertainment marks a significant milestone for Barstool Sports. With Portnoy’s return to the helm and the newfound partnership with ESPN, the company is poised for continued success in the sports media and betting industry.
FOX Business’ Joe Toppe contributed to this report.