According to Sportico, Dave Portnoy’s company is in talks with DraftKings Sportsbook for a partnership that could yield eight figures annually.
The deal hasn’t been signed or announced yet due to existing commitments with PENN Entertainment, and is unlikely to be finalized before the current NFL season ends. However, Barstool is close to securing a contract that would generate substantial profits in exchange for hosting DK odds and promoting the betting platform.
While Barstool will not lend its name to the sportsbook, DK will utilize Portnoy, as well as other Barstool talents such as Big Cat and Frank The Tank.
As per Sportico:
“The sale back to Portnoy included “certain non-compete and other restrictive covenants,” Penn said at the time. It included a clause that Penn would receive 50% of the gross proceeds if Portnoy sells the company in the future. Barstool is also prevented from getting back into betting before the end of this current NFL season and playoffs, according to sources.”
The agreement is poised to rival deals struck by other media platforms with betting companies. Dan Le Batard’s Meadowlark Media secured a $50 million arrangement with DraftKings, and FanDuel has a significant deal in place with Bill Simmons’ The Ringer.
Portnoy repurchased Barstool for just $1 after selling it to PENN for $388 million. Although PENN incurred a loss, it has since inked a 10-year, $1.5 billion deal with ESPN for the new ESPN BET.