Barstool Sports Eyes DraftKings Betting Partnership
Barstool Sports in Talks for a Lucrative Betting Deal with DraftKings
In a significant turn of events, Barstool Sports has entered into negotiations with DraftKings over a sports betting partnership that could prove to be highly profitable for the media company. Sources close to the matter suggest that if the deal goes through, it could be valued in the low eight figures annually for Barstool.Dave Portnoy's Comeback
Dave Portnoy, the founder of Barstool Sports, has made a dramatic return to the helm of the company. This leadership change comes after Penn Entertainment sold their stake back to Portnoy for a nominal fee of $1. Penn had previously acquired a 36% interest in Barstool for $163 million and subsequently bought the remaining 64% for an additional $388 million.Penn's Exit Strategy
Penn's initial strategy involved leveraging Barstool's brand to bolster its own sportsbook, but this move did not pan out as expected. Following this disappointment, Penn has since shifted gears by partnering with ESPN to launch ESPN Bet. This new venture came on the heels of Penn taking an $850 million write-off from their Barstool acquisition.
Moreover, should Portnoy decide to sell Barstool in the future, Penn is entitled to receive half of the gross proceeds from the sale. This clause serves as a potential financial safety net for Penn following their divestment from Barstool.Super Bowl Lock-Up and Future Plans
Despite the buzz around the possible partnership with DraftKings, Barstool is currently restricted from finalizing any betting deals until after the Super Bowl due to a lock-up arrangement. Furthermore, the company is prohibited from participating in the betting industry until the conclusion of the current NFL season. Nonetheless, Barstool remains committed to re-entering the sports betting market and is actively seeking partnerships to expand its presence in the sector.DraftKings' Marketing and Partnership Changes
DraftKings itself has been making headlines with its considerable investment in sales and marketing, which amounted to $1.19 billion in fiscal 2022. However, this marked the first time in more than three years that the company decreased its marketing spend. In another strategic shift, DraftKings ended its marketing partnership with ESPN, which coincidentally partnered with Penn for ESPN Bet.Barstool's Continued Influence
Despite these corporate maneuvers, Barstool continues to provide gambling advice and picks to its audience. The company's influence in the world of sports betting remains strong, with a clear intent to solidify its position in the industry. As Portnoy himself stated, "I would still argue that [sports betting] is a huge part of what we do today. Our crew bets obsessively on games, we always have... But I think you'll see, into next year, that we start to establish ourselves back in that space."Conclusion
The landscape of sports betting and media partnerships is ever-evolving, with Barstool Sports and DraftKings at the forefront of these changes. As Barstool navigates its post-Penn era under Dave Portnoy's regained leadership, the anticipation builds for what could be a game-changing deal with DraftKings. With the end of the NFL season in sight, the sports betting community will be watching closely to see how Barstool's strategy unfolds and whether their expansion plans will lead to new heights in the competitive betting market.