Dave Portnoy Bought Back Barstool Sports for a Shocking Amount of Money
justjared.comDave Portnoy is the owner of Barstool Sports again, and the amount of money he spent to acquire the company might shock you.
According to a new securities filing, the 46-year-old businessman acquired the sports media brand he founded for just $1, via THR.
For context, Penn Entertainment spent $551 million to acquire Barstool, and Penn says that it expects to record a loss of between $800 million to $850 million on the deal. Keep reading to find out more… Penn previously announced a deal with ESPN to rebrand Barstool Sportsbook as ESPN Bet, and will pay ESPN $1.5 billion and $500 million in stock warrants for the privilege, via THR.
As a result, they abandoned the Barstool brand, which they acquired earler this year. “Pursuant to the Barstool SPA, PENN sold 100% of the outstanding shares of Barstool to David Portnoy in exchange for a nominal cash consideration ($1.00 dollar) and certain non-compete and other restrictive covenants,” the company wrote in their filing. Dave also agreed to give Penn 50 percent of the proceeds from any future sale of Barstool Sports, while Penn agreed to “indemnify Barstool and its subsidiaries and David Portnoy for certain tax matters.” Dave originally founded Barstool Sports in 2003.
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