Barstool Sports is nearing a substantial deal with a potential new betting partner, with discussions underway for a partnership with DraftKings Sportsbook that could result in an annual payout in the eight-figure range, according to Sportico.
While the deal has not been officially signed or announced, it is in advanced stages, awaiting resolution of previous contractual obligations with PENN Entertainment. The announcement is expected post the current NFL season. The proposed partnership would involve Barstool hosting DraftKings (DK) odds and promoting the betting platform, promising significant profits.
Despite Barstool not lending its name to the sportsbook, DraftKings intends to leverage Barstool’s influential figures such as Dave Portnoy, along with other talents like Big Cat and Frank The Tank.
Sportico reports that Barstool’s repurchase from Portnoy included non-compete clauses and restrictive covenants, with Penn set to receive 50% of gross proceeds if Barstool is sold in the future. Barstool is also prohibited from reentering the betting space until the conclusion of the current NFL season and playoffs.
“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.” via Sportico.
This potential deal puts Barstool in a league comparable to other media platforms securing partnerships with betting companies. Meadowlark Media, led by Dan Le Batard, reached a $50 million deal with DraftKings, while FanDuel has a significant arrangement with Bill Simmons’ The Ringer.
Dave Portnoy had initially sold Barstool to PENN for $388 million but later repurchased it for just $1. Despite the initial loss for PENN, the company has since entered into a lucrative 10-year deal with ESPN worth $1.5 billion over the ESPN BET initiative.
