As reported by Sportico, Dave Portnoy’s firm is currently in negotiations with DraftKings Sportsbook for a potential collaboration that may result in a substantial annual revenue in the eight-figure range.
The formal agreement has not been finalized or publicized yet due to prior obligations with PENN Entertainment. It is unlikely to be completed until the conclusion of the ongoing NFL season. Nevertheless, Barstool is on the verge of securing a deal that would bring in significant profits, in return for showcasing DK odds and endorsing the betting platform.
Although Barstool will not be directly associated with the sportsbook, DK will make use of Portnoy’s influence along with other Barstool personalities like Big Cat and Frank The Tank.
As mentioned in Sportico:
“The purchase back to Portnoy involved “specific non-compete and additional restrictive agreements,” Penn stated previously. This included a provision where Penn would be entitled to 50% of the total earnings if Portnoy sells the business in the future. Barstool is also prohibited from re-entering the betting market before the culmination of the current NFL season and playoffs as per sources.”
This contract is set to compete with agreements made by other media outlets in collaboration with betting firms. Meadowlark Media under Dan Le Batard closed a $50 million deal with DraftKings, while The Ringer owned by Bill Simmons has a significant partnership in place with FanDuel.
Portnoy reacquired Barstool for a nominal sum of $1 subsequent to selling it to PENN for $388 million. Despite PENN encountering a loss, they recently sealed a lucrative 10-year, $1.5 billion deal with ESPN for the launch of ESPN BET.
