Barstool Sports founder Dave Portnoy has once again become the owner of his media brand after buying it back from PENN Entertainment.
Back in February of this year, PENN acquired Barstool Sports for approximately $338 million. PENN’s complete ownership only lasted a few months because in July, ESPN signed a licensing deal with PENN to create ESPN Bet, a new sportsbook.
According to ESPN, “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.”
According to a statement released by Businesswire, PENN sold 100% of Barstool Sports, Inc. common stock to David Portnoy “in exchange for certain non-compete and other restrictive covenants.” PENN will also receive 50% of the gross proceeds received by David Portnoy in any subsequent sale or monetized Barstool event.
In an “Emergency Press Conference” tweet posted on platform X, announcing that he has bought back Barstool Sports.
“PENN was able to broker an unbelievable deal with ESPN,” Portnoy shared. “We wish them nothing but the best in their endeavors. It is truly a win-win.”
Emergency Press Conference – I Bought Back Barstool Sports pic.twitter.com/dmUk0eNowx
— Dave Portnoy (@stoolpresidente) August 8, 2023
Portnoy also discussed that gambling regulators and “hit pieces f**king with the stock price” for preventing the Barstool Sportsbook from reaching the success originally envisioned.
“We underestimated just how tough it is for myself and Barstool to operate in a regulated world,” Portnoy added.
“Our primary focus is always to serve sports fans and we know they want both betting content and the ability to place bets with less friction from within our products,” ESPN chairman Jimmy Pitaro said. “The strategy here is simple: to give fans what they’ve been requesting and expecting from ESPN.”
Additionally, Portnoy explained how the purchase impacts Barstool Sports’ future content stating that “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 added that when the time comes, he will pass it down within the company.
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