Sportico has reported that Dave Portnoy’s organization is currently in discussions with DraftKings Sportsbook for a collaboration that could result in substantial yearly returns.
The agreement has not been formally executed or revealed yet due to prior commitments with PENN Entertainment, and is not expected to be completed until the conclusion of the ongoing NFL season. Nevertheless, Barstool is edging towards securing a deal that would generate significant financial gains by hosting DK odds and promoting the betting platform.
Although Barstool will not be directly associated with the sportsbook, DK will leverage Portnoy, in addition to 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 entering into betting activities until the conclusion of the current NFL season and playoffs, according to sources.”
The deal is set to compete with agreements secured by other media platforms with betting companies. Dan Le Batard’s Meadowlark Media finalized a $50 million deal with DraftKings, and FanDuel has a substantial arrangement in place with Bill Simmons’ The Ringer.
Portnoy bought back Barstool for just $1 after selling it to PENN for $388 million. Despite PENN incurring a loss, they subsequently signed a 10-year, $1.5 billion deal with ESPN for the new ESPN BET.