Barstool Sports activities, DraftKings Reportedly Discussing Partnership
David Portnoy’s Barstool Sports activities and DraftKings (NASDAQ: DKNG) are reportedly in superior discussions concerning a advertising partnership that would see the sports activities media entity reenter the betting house following its current divorce from Penn Leisure (NASDAQ: PENN).
Barstool Sports activities founder David Portnoy. His firm may very well be partnering with DraftKings. (Picture: The Verge)
Sportico reported Wednesday that Barstool Sports activities and DraftKings are negotiating “a extra conventional advertising partnership” that may see Portnoy’s firm promote DraftKings odds and refer readers and viewers to the operator’s on-line sportsbook. Nothing is official as of but, nevertheless it’s believed a deal may very well be price north of $10 million yearly to Barstool.
Whereas sports activities wagering remains to be a subject of dialogue on Barstool, Portnoy’s firm hasn’t been in a position to signal a betting advertising settlement with one other operator since he reacquired the enterprise from Penn final August.
After paying $551 million to purchase Barstool Sports activities, Penn dumped the enterprise after inking a sports activities betting cope with ESPN. Portnoy paid simply $1 to purchase again his “child” whereas the regional on line casino operator suffered a write-down of $850 associated to the Barstool buy.
Attainable Oversight By Penn
The settlement between Penn and Portnoy below which he regained management of Barstool Sports activities contained a provision that the on line casino operator could be entitled to 50% of the economics ought to he promote the media outlet to a different gaming firm.
Nonetheless, Portnoy’s not promoting Barstool to DraftKings. He’s stated he gained’t once more promote his firm. Nonetheless, it’s believed that Penn stipulated Barstool be topic to a noncompete clause of simply six months following the cope with Portnoy. That might quantity to an oversight that’s paving the way in which for an association with DraftKings.
On a associated observe, Sportico reported that the separation accord with Penn included a provision that barred Barstool Sports activities from getting again into the betting area earlier than the tip of the present NFL season. The Tremendous Bowl is on Sunday, February 11, which means if Barstool and DraftKings are in talks at this time, a deal gained’t be revealed till after the large recreation.
Whereas Barstool hasn’t had direct ties to a sportsbook operator in a number of months, sports-wagering content material stays a cornerstone for the outlet, indicating it’s seemingly only a matter of time earlier than the publication groups up with one other gaming firm.
Barstool Sports activities, DraftKings Deal Would Make Sense
DraftKings is alleged to have benefited from Penn teaming up with ESPN as a result of the operator had what was believed to be an costly relationship with the sports activities community.
There are the explanation why a Barstool Sports activities/DraftKings partnership is sensible. These embrace the purpose that each corporations have Boston roots. That’s the place DraftKings relies and that’s the place Portnoy began his firm.
Moreover, DraftKings has proven a knack for savvy media offers. In 2021, the gaming firm acquired the Vegas Stats & Data Community (VSiN) and reached a distribution pact with Meadowlark Media, which is the proprietor of Dan Le Batard’s community of reveals.
