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The Barstool Sportsbook ection of the casino at the Hollywood Casino Morgantown. MediaNews Group via Getty Images |
In an unexpected turn of events, Dave Portnoy is once again at the helm of Barstool Sports, signaling a new era for the popular media company. Penn Entertainment, in a move that highlights its strategic direction, has announced its decision to divest Barstool Sports back to its founder, Portnoy, who originally established the brand in 2003.
Penn Entertainment's pivot doesn't end there, as the company also unveiled a partnership with ESPN to revamp its existing sportsbooks. These changes mark a decisive shift in the company's trajectory, aimed at capitalizing on emerging opportunities within the sports and entertainment industry.
The recent announcement detailed that Penn Entertainment has successfully transferred "100%" ownership of Barstool Sports to Portnoy. However, this transition isn't without conditions. The deal includes a set of non-compete and restrictive covenants, along with a provision that grants Penn Entertainment 50% of the gross proceeds from any future sale or monetization event involving Barstool Sports.
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Dave Portnoy announced Tuesday he bought back Barstool Sports from Penn. Dave Portnoy
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The journey to this reacquisition has been a winding one. Portnoy had previously sold a majority stake in Barstool Sports to The Chernin Group in 2016. Earlier this year, Penn Entertainment's acquisition of Barstool Sports for a staggering $551 million marked a significant milestone.
In a video message posted on Tuesday, Portnoy shared his excitement about regaining "total control" over Barstool Sports. He openly addressed the hurdles that the company had encountered within the regulated gambling landscape, citing challenges imposed by gambling regulators, media scrutiny, and fluctuating stock prices.
Watch video here
"We got denied licenses because of me. You name it. So the regulated industry probably not the best place for Barstool Sports and the content we make," Portnoy stated, acknowledging the unique challenges that a regulated environment posed to the company's freewheeling nature.
Despite these challenges, Portnoy referred to the situation as a "win-win" scenario. He extended his well wishes to both ESPN and Penn Entertainment while expressing his contentment at Barstool's return to its roots – the "pirate ship," as he affectionately termed it. He emphasized his unwavering commitment to the company, stating, "I will never sell Barstool Sports [again], ever. I'll hold it till I die."
The partnership with ESPN, as announced by Penn Entertainment, involves the rebranding of Barstool Sportsbook to "ESPN Bet." This strategic move is backed by a strong belief in the potential for synergy between the extensive audience reach of ESPN and Penn Entertainment's operational expertise and technological prowess.
ESPN Chairman Jimmy Pitaro articulated this sentiment, saying, "We are confident that the combination of our unparalleled audience along with Penn’s operational expertise and state-of-the-art technology provides us with a tremendous opportunity to serve the ever-growing number of consumers interested in betting."
As Portnoy takes the reins of Barstool Sports once more and Penn Entertainment aligns with ESPN for a fresh chapter, the future of both entities becomes a focal point of anticipation within the dynamic world of media, entertainment, and sports betting.
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