The founder of one of the most successful sports media companies of the last decade could be ready to call it quits. Here’s a look at where things stand between Penn Entertainment, Barstool Sports and Dave Portnoy.
What Happened: The acquisition of Barstool Sports by Penn Entertainment PENN is considered by many in the sports betting sector to have been a bargain. The acquisition has helped the company diversify with online sports betting and sports media and led to the rebrand of the company and name change.
Penn Entertainment, known as Penn National at the time, acquired a 36% stake in Barstool Sports in 2020 with an option to acquire the remaining stake. Penn Entertainment acquired the remainder of Barstool Sports earlier this year.
Founded by Dave Portnoy in 2003, Barstool Sports has been one of the leaders in sports media, generating a loyal network of fans across podcasts, live events and blogs.
The brand is used by Penn for its online sports betting platform, the Barstool Sportsbook. When the app goes live in states, Portnoy and other recognizable Barstool Sports members often travel to those states and conduct marathons of betting coverage with promotions for new users.
Portnoy's time as the face of Barstool Sports could be coming to an end, however, as reported by the New York Post.
In a recent interview on “The Kirk Minihane Show,” Portnoy said that his future with Penn Entertainment remains a question mark.
“My contract’s done in 20 months,” Portnoy said.
Portnoy said an extension with Penn Entertainment may not be reached.
“There’s been some talk about it. Like you said (previously), who knows what they’re thinking at this point,” he said.
Discussion around Portnoy’s future with Barstool Sports came after Minihane asked him for his thoughts on Dan Katz leaving New York to open a Barstool office in Chicago.
“I think it’s great … Who knows where I’ll be in 3-4 years? I think Dan, which I would say is very good for Barstool, is clearly locked in for a very long time," Portnoy said.
Related Link: Benzinga Names Penn Entertainment A Heavy Hitter Award Recipient At Inaugural Titans Sports Betting Event
Why It’s Important: Portnoy has spoken out against Penn Entertainment for its handling of former Barstool employee Ben Mintz. Portnoy said he was grateful that Penn took a chance on Barstool when other gambling companies wouldn’t but said he disagreed with Penn CEO Jay Snowden's decision to fire Mintz over the latter's rapping a racial slur on a live stream.
Portnoy has been controversial over the years and allegations of sexual misconduct against him have put a dark cloud over Penn Entertainment at times.
When asked what he would do next if he were to no longer be with Barstool Sports, Portnoy said he was unsure.
“I go back and forth on that,” Portnoy said.
Portnoy said he wouldn't want to launch a new media business if he left Barstool Sports.
“Would I just do a podcast a week that’s totally unfiltered? Would I enjoy doing that? Maybe. There’s part of me that thinks I’d be like, ‘OK I’m done,’” he said.
Portnoy also said he enjoys doing the one-bite pizza reviews, which could lead to a new career.
“Like a pizza show on Netflix where you’re doing like 15 minutes a spot … I like doing it. It excites me. I think it’d be wildly successful … like (Anthony) Bourdain of what I’m doing,” he said.
One person who would not be a fan of Portnoy's potential departure from Barstool Sports is UFC president Dana White.
“Let me tell you what, once you start to gets suits involved in your business and these f**king corporate guys who think know what the f**king doing … and most of them don’t know jack s**t,” White said during an appearance on “The Pat McAfee Show.”
The New York Post reported White said that Barstool could face a rough future “over the next couple of years too.”
“What I’m saying is, when you build a company like Barstool Sports, the way that it was built with a guy like Dave Portnoy, once you get a bunch of suits involved … it just changes the dynamic of the whole thing. Ask Vice how that went,” White said.
Portnoy previously faced accusations from fans of being a sellout after the sale of Barstool Sports went through and Mintz was fired.
“I started a company and I f**king sold it the f**k out. Made hundreds of millions, made millions for everybody that grinded,” Portnoy said at one point.
PENN Price Action: Penn Entertainment shares were up 3% to $25.64 on Friday versus a 52-week trading range of $23.16 to $39.35.
Shares of Penn are down 12.7% year-to-date in 2023, while other sports betting and regional casino companies like DraftKings, MGM Resorts and Caesars Entertainment are trading positive on the year.
Read Next: Dave Portnoy Says His Net Worth Is Tied To One Stock
Photo: Zach Catanzareti Photo via flickr
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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