Portnoy Again In Full Management Of Barstool Sports activities, Will not Promote Once more

The idea of media and sports activities wagering partnerships entered a brand new part Tuesday, when ESPN and Penn Leisure (NASDAQ: PENN) introduced an settlement beneath which the on line casino operator can pay a hefty sum to make use of the ESPN Wager model. Barstool Sports activities was unnoticed within the chilly.

Barstool Sports activities founder David Portnoy. Following Penn Leisure’s take care of ESPN, he now owns 100% of Barstool Sports activities once more. (Picture: Sports activities Illustrated)

As a part of a deal that can see Penn pay $1.5 billion over 10 years to ESPN whereas granting the community rights to ultimately come clean with 1 / 4 of its excellent fairness, the biggest regional on line casino operator bought 100% of Barstool Sports activities again to founder David Portnoy. They half methods with the brash popular culture and sports activities media entity simply months after taking full possession of the positioning. In February, Penn paid $388 million for the 64% of Barstool Sports activities it didn’t beforehand personal, bringing the full acquisition worth for Portnoy’s firm to $551 million.

In an announcement saying the partnership with ESPN, Penn didn’t say something about Portnoy or Barstool Sports activities. However the entrepreneur stated it was tough for his firm to function within the regulated gaming house, and that Penn’s ties to him might have price Barstool Sportsbook licenses in some states.

We underestimated simply how robust it’s for myself and Barstool to function in a regulated world the place playing regulators, New York Instances, Enterprise Insider, hit items f*cking with the inventory worth,” Portnoy stated in a single his well-known “emergency press conferences.” “Each time we did one thing, it was one step ahead, two steps again. We received denied licenses due to me.”

Portnoy didn’t point out particular states by which Barstool Sports activities, the model Penn used for its on-line and retail sportsbooks, was rejected for permits. He added the regulated betting business “most likely isn’t the perfect place” for Barstool and its bread-and-butter content material.

A lot Hypothesis On Penn, Portnoy Relationship

Monetary phrases of the transaction between Penn and Portnoy weren’t disclosed. However the on line casino operator maintains rights to 50% of the proceeds ought to Portnoy resell his firm or monetize it in another trend.

For the primary time since earlier than The Chernin Group took a majority stake in 2016, Portnoy owns 100% of the Boston-based firm he based 20 years in the past. Over the previous three-plus years since Penn initially bought a part of Barstool, the on line casino firm remained quiet about Portnoy’s varied controversies, together with his sexual proclivities and feedback on varied matters of the day.

Analysts protecting the gaming firm have been blended of their views of simply how a lot of Portnoy’s perceived antics the agency would tolerate. Although it’s by no means been confirmed, issues might have reached a tipping level in Might when Portnoy fired Ben “Mintzy” Mintz for utilizing a racial epithet whereas reciting a rap music on air.

Initially, Portnoy didn’t wish to let Mintz go, and it’s rumored that he succumbed to stress from Penn to fireside the on-air character to stop bother with regulators.

Subsequent Strikes for Portnoy, Barstool Sports activities

Through the emergency press convention, Portnoy displayed no sick will towards Penn and stated he plans to retain his shares within the on line casino operator as a result of he owns “a ton of Penn inventory,” and believes it would expertise worth appreciation.

As for Barstool Sports activities, which could possibly be enticing to a different media or sports activities betting firm, Portnoy stated he has no plans for one more sale and that he’ll maintain on to the corporate till he dies. Now, he’ll flip his consideration to “content material, content material, content material.”

Conjuring Al Pacino within the Godfather III, Portnoy quipped about his return to full possession of his firm: “Each time I feel I’m out, they pull me again in.”