Dave Portnoy repurchases Barstool Sports at a minimal cost after selling it years ago.

Dave Portnoy repurchases Barstool Sports at a minimal cost after selling it years ago.

Dave Portnoy Takes Back Ownership of Barstool Sports in a Multi-Million Dollar Deal

Barstool Sports

Dave Portnoy, the charismatic founder of Barstool Sports, has once again become the sole owner of the popular sports blog site. In a video posted on Twitter, Portnoy announced that he has repurchased the company stock from PENN Entertainment, a casino and sports gaming business. This comes after PENN had completed its acquisition of Barstool earlier this year in a deal worth a staggering $551 million.

This transaction marks a significant milestone for Portnoy, as it returns him to the helm of Barstool Sports with complete control. He expressed his excitement, saying, “For the first time in a decade, I own 100% of Barstool Sports.” This move signifies the end of the partnership between PENN and Barstool, as they have decided to go their separate ways.

The separation between PENN and Barstool was prompted by PENN’s new 10-year deal with Disney’s ESPN. As part of this agreement, Penn’s existing Barstool Sportsbook will be rebranded as ESPN BET this fall. The deal between PENN and ESPN is valued at a staggering $1.5 billion, with an additional $500 million in warrants tied to media, marketing, and other services from ESPN.

In exchange for relinquishing its ownership stake in Barstool, PENN will receive certain non-compete and other restrictive covenants from Portnoy. Furthermore, the terms of the deal stipulate that PENN is entitled to receive half of the gross proceeds from any future sale or monetization event of Barstool.

The relationship between PENN and Barstool has had its fair share of challenges. In May, tensions arose when Penn overrode Barstool executives and fired Ben Mintz after he used a racial slur while reading song lyrics during a livestream. This incident coincided with Penn’s first-quarter earnings report, in which the company fell short of Wall Street’s expectations, causing its stock to plummet.

Despite these ups and downs, both PENN and Barstool are now moving forward in their respective directions. The announcement of the new Barstool Sports and ESPN arrangements has already proven to be beneficial for PENN, as its shares jumped by 14% in after-hours trading following the news.

Representatives for PENN National and Barstool Sports have yet to comment on the recent developments. However, it is evident that both parties are forging ahead with their unique plans and strategies. For Portnoy, this resurgence as the sole owner of Barstool presents new opportunities to further expand the brand and continue the company’s entertainment-driven approach to sports coverage.