After splitting from Penn Entertainment in August, allowing Dave Portnoy to regain ownership of Barstool Sports, there are talks going around in the space about a potential deal with DraftKings. Penn let go of Barstool when it struck a deal with ESPN, renaming the Barstool betting app to ESPN Bet. With DraftKings’ stock climbing recently, rumors suggest a possible multi-year agreement with Barstool, potentially bringing in “low eight figures” annually.
There’s no official comment on the deal yet. Due to a non-compete clause with Penn, Barstool can’t announce any new partnerships until after the Super Bowl.
The rumored deal is said to differ from the previous arrangement with Penn. Barstool, founded by Portnoy in 2003, has become a key player in the sports industry, known for its unique style in podcasts, videos, and articles, and has built a dedicated following over the years.
Penn originally bought 36% of Barstool in 2020 for $163 million, later acquiring the rest in 2023 for $388 million. Penn aimed to leverage Barstool’s popularity for its sportsbook. However, the deal with ESPN changed the course, allowing Portnoy to buy back Barstool for $1, while Penn faced an $850 million loss.