Information reaching Kossyderrickent has it that $0: Dave Portnoy bought back Barstool Sports for free (zero dollar).
On Tuesday, the sports betting world received news of a bombshell agreement between PENN Entertainment and ESPN introducing a new platform called ESPN BET. The deal made headlines for a variety of reasons, most notably due to PENN’s previous partnership with Barstool Sports.
The company set in motion an acquisition of Barstool back in 2020, dishing out a reported $551 million for complete control of the entertainment and gambling site.
PENN purchased a 36% stake at a price of $163 million in those original 2020 dealings. It then bought the remaining 64% this past February at $388 million.
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.”
Just a few months later, PENN is scrapping the partnership with Barstool as it moves into a new era with ESPN.
The Wall Street Journal reports that the new agreement is worth $2 billion total, including $1.5 billion in cash over 10 years. ESPN will now introduce a platform called ESPN BET, which “will be promoted on the broadcaster’s platforms and will have access to ESPN programming and talent.”
By teaming up with the network, PENN had to sell its ownership in Barstool Sports. A new report suggests that they gave it back to its founder for $0.
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.
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.
