Dave Portnoy Makes Major Announcement About 'Barstool Sports' Ownership

Barstool Sports co-founder Dave Portnoy revealed today that he has regained complete control of the sports website from investors Penn Entertainment.

"PENN sold 100 percent of the Barstool Sports, Inc. ('Barstool') common stock to David Portnoy in exchange for certain non-compete and other restrictive covenants," a press release reads. "PENN also has the right to receive 50 percent of the gross proceeds received by David Portnoy in any subsequent sale or other monetization event of Barstool."

Portnoy released a short YouTube video explaining the decision.

"We underestimated just how tough it is for myself and Barstool to operate in a regulated world where gambling regulators, The New York Times, Business Insider hit pieces fucking with the stock price," he said. "Every time we did something it was one step forward, two steps back. We got denied licenses because of me. So the regulated industry probably not the best place for Barstool Sports and the type of content we make."

He also emphasized that it would allow the website to release more content without fear of censorship. "More importantly for us, for Barstool, for the first time in forever, we don't have to watch what we say, how we talk, what we do, it's back to the pirate ship," he said. 

Penn Enteratinment first acquired a 36 percent stake in Barstool Sports in February 2020 with a push into the world of online gambling. It completed a full acquisition of the company at the beginning of this year, paying a reported $388 million for the remaining 64 percent stake. 

As Portnoy's statement alludes, the investment didn't play out as the company had expected. Portnoy's own bad press, including a Business Insider expose about his personal life and New York Times coverage about his role in the gambling business, also complicated the relationship. The deal was announced as part of a new $2 billion partnership between Penn Entertainment and ESPN, which will replace Barstool Sportsbook with ESPN Bet in 16 states.

from Men's Journal https://ift.tt/YLlAEyp