The concept of media and sports wagering partnerships entered a new phase today when ESPN and William Penn Entertainment (NASDAQ: PENN) announced an understanding below which the casino operator testament pay off a hefty totality to utilization the ESPN Bet brand. Barstool Sports was left wing come out inwards the cold.
As component of a trade that testament consider Penn make up $1.5 billion over 10 years to ESPN spell granting the network rights to eventually possess upwardly to a canton of its undischarged equity, the largest regional gambling casino manipulator sold 100% of Barstool Sports support to father David Portnoy, parting ways with the nervy pop culture and sports media entity just months after taking full ownership of it. In February, Penn paid $388 million for the 64% of Barstool Sports it didn’t previously own, bringing the come acquisition terms for Portnoy’s company to $551 million.
In a financial statement announcing the partnership with ESPN, William Penn didn’t say anything nearly Portnoy or Barstool Sports, but the enterpriser said it was hard for his company to operate inwards the regulated gaming infinite and that Penn’s ties to him may get cost Barstool Sportsbook licenses inward some states.
We underestimated just now how toughened it is for myself and Barstool to run in a regulated mankind where gambling regulators, New House of York Times, Business Insider, bang pieces f*cking with the gillyflower price,” Portnoy said inwards ace his famous “emergency military press conferences.” “Every clip we did something, it was ane stone's throw forward, 2 steps back. We got denied licenses because of me.”
Portnoy didn’t reference specific states in which Barstool Sports, the make Penn used for its online and retail sportsbooks, was rejected for permits. He added the regulated betting industry “probably isn’t the topper place” for Barstool and its bread-and-butter content.
Much Speculation Regarding Penn, Portnoy Relationship
Financial terms of the dealings between Penn and Portnoy weren’t disclosed, but casino manipulator maintains rights to 50% of the proceeds should Portnoy resell his fellowship or monetize it inwards some other fashion.
For the firstly time since before The Chernin Group took a majority wager inward 2016, Portnoy owns 100% of the Boston-based company he founded 20 years ago. Over the past times three-plus years since Penn ab initio purchased section of Barstool, the gambling casino society remained quiet nigh Portnoy’s various controversies, including his sexual proclivities and comments on various topics of the day.
However, analysts natural covering the gaming company were mixed inwards their views of simply how a great deal of Portnoy’s perceived antics the unwavering would tolerate. Though it’s ne'er been confirmed, things may feature reached a tipping in May when Portnoy fired Ben “Mintzy” Mintz earliest this month for using a racial epithet piece reciting a tap song on air.
Initially, Portnoy didn’t need to let Mintz go away and it’s rumored that he succumbed to force per unit area from Penn to discharge the on-air personality to preclude pain with regulators.
Next Moves for Portnoy, Barstool Sports
During the exigency mechanical press conference, Portnoy displayed no ill will toward Penn and said he plans to hold back his shares inwards the casino manipulator because he owns “a ton of Penn stock” and believes it will receive cost appreciation.
As for Barstool Sports, which could be attractive to another media or sports betting company, Portnoy said he has no more plans for another sales event and that he’ll support onto the accompany until he dies. Now, he’ll turn over his attending to “content, content, content.”
Conjuring Al Pacino inward the “Godfather III,” Portnoy quipped about his yield to good ownership of his society “Every time I cerebrate I’m out, they force me plunk for in.”
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