Barstool is looking to acquire new betting partners.
Dave Portnoy's Barstool Sports is in talks to work with DraftKings Sportsbook on the marketing side. According to SporticoAmazing developments in the sports betting industry.
The deal reportedly hasn't been announced or signed yet due to Barstool's previous contract restrictions with PENN Entertainment, but the deal will pay Barstool in the low eight figures annually and host DraftKings odds. At the same time, it will send customers to the platform.
Barstool will not lend its name to DraftKings.
PENN acquired Barstool from Portnoy and its investors for $388 million, with the sale closing in February 2023.
However, the partnership fell through, and PENN gave the company back to Portnoy for $1, and after writing off the $388 million purchase price as a loss, it turned around and sold $1.5 billion over 10 years for the ESPN name. I spent a lot of money on it.
PENN reported $850 million in write-offs as a result of the failed Barstool acquisition.
DraftKings is looking to leverage the talent of Portnoy and Barstool’s peers, including Dan “Big Cat” Katz and Frank the Tank, across its podcast network.
The deal, Dan Le Batard said, is comparable to what other media companies have achieved through gambling partnerships. meadowlark media FanDuel and The Ringer extracted $50 million from DraftKings over three years. extended the contract Founder Bill Simmons called it a “significant investment.”
Once the deal is complete, Portnoy will be reunited with former talent Jared Karavis. Leaving Barstool for DraftKings In 2022.
If Barstool were to be acquired at some point, PENN would receive 50 percent of the sale price, a kind of schmuck insurance provision that the gaming giant implemented when it handed the company back to Portnoy for $1.
