Dave Portnoy announced that he purchased back Barstool Sports, as ESPN signed a $2B gambling deal with PENN Entertainment.
In February, PENN Entertainment completed an acquisition of Barstool Sports for approximately $388 million. PENN’s complete ownership only lasted a few months, as the entertainment company parted ways with Barstool for ESPN.
On July 8, ESPN signed a licensing deal with PENN to create ESPN Bet, a new sportsbook. ESPN reported that “Penn agreed to pay $1.5 billion in cash over 10 years, as well as grant ESPN $500 million of warrants to purchase approximately 31.8 million common shares of Penn.”
As part of the deal, BusinessWire confirmed that Penn sold 100% of Barstool Sports to Dave Portnoy “in an exchange for certain non-compete and other restrictive covenants.” Barstool also has to award 50% of the gross proceeds received in any subsequent sale or other monetization event of Barstool, but Portnoy explained how that won’t be an issue.
Dave Portnoy announces buyback of Barstool Sports
In an emergency press conference, Portnoy announced that he bought back Barstool Sports.
“PENN was able to broker an unbelievable deal with ESPN. We wish them nothing but the best in their endeavors. It is truly a win-win.”
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Portnoy criticized gambling regulators and “hit pieces f**king with the stock price” for preventing the Barstool Sportsbook from reaching the heights both parties originally envisioned.
“We underestimated just how tough it is for myself and Barstool to operate in a regulated world.”
Emergency Press Conference – I Bought Back Barstool Sports pic.twitter.com/dmUk0eNowx
— Dave Portnoy (@stoolpresidente) August 8, 2023
Additionally, Portnoy explained how the purchase impacts Barstool Sports’ future content.
“For the first time in forever, we don’t have to watch what we say, how we talk, or what we do. I am never going to sell Barstool Sports. I will hold it until I die;” Portnoy said when that time does come, he’ll pass it down within the company.
What immediate impact this move has on Barstool Sports, its content, or the company’s current employees remains to be seen.