Barstool Sports, the dynamic media brand led by Dave Portnoy, is reportedly engaged in advanced discussions with DraftKings Sportsbook for a strategic collaboration. While the deal has not been officially announced or finalized due to existing contractual obligations with Penn Entertainment, it is expected to involve a significant low eight-figure annual payment to Barstool.
The proposed collaboration outlines a strategic partnership where Barstool Sports will host DraftKings odds and guide its substantial audience toward the DraftKings platform. It is important to note that this collaboration does not entail Barstool lending its name to DraftKings.
Barstool Sports was initially acquired by Penn Entertainment from Portnoy and investors for $388 million in February 2023. However, the partnership faced challenges, leading to Penn returning the company to Portnoy for a nominal sum of $1, resulting in an $850 million write-off for Penn.
The potential collaboration between Barstool Sports and DraftKings aims to leverage the talent pool at Barstool, including notable figures such as Dan ‘Big Cat’ Katz and Frank The Tank, across DraftKings’ expansive podcast network. It’s worth noting that if Barstool were to undergo a buyout, Penn Entertainment would be entitled to 50 percent of the sale price, as per a provision implemented during the relinquishment of the company back to Portnoy for $1. However, specific details on how the potential deal would navigate Barstool’s non-compete clauses with Penn remain unclear.
DraftKings has been proactive in expanding its footprint. On January 10, 2024, the company announced plans to launch its online sportsbook in Vermont, marking its 26th state and fifth in New England. This move follows DraftKings’ previous launches in Ontario on May 12, 2022, and North Carolina.
While the collaboration between Barstool Sports and DraftKings is still in the negotiation phase, the potential venture holds promise for both entities to tap into new opportunities in the rapidly evolving sports betting and media landscape.
