Last updated: May 14, 2024
Barstool Sports and DraftKings are reportedly in talks for a marketing partnership, hinting at Barstool’s return to the betting scene after its split from Penn Entertainment. The deal, estimated to exceed $10 million annually, may involve Barstool endorsing DraftKings odds, marking a potential synergy between the two prominent sports entities.
DraftKings (NASDAQ: DKNG) and Barstool Sports, owned by David Portnoy, are reportedly in advanced talks about a marketing partnership that could see the sports media company reenter the betting market after recently divorcing Penn Entertainment (NASDAQ: PENN).
According to a Sportico story published on Wednesday, Portnoy’s business would endorse DraftKings odds and direct readers and viewers to the operator’s online sportsbook as part of “a more traditional marketing partnership” between Barstool Sports and DraftKings. Although nothing is official yet, it’s thought that Barstool could receive an annual payment of more than $10 million from the deal.
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Even though Barstool users continue to discuss sports betting, since Portnoy reacquired the company from Penn in August of last year, the company has not been able to sign a betting marketing agreement with another operator.
Penn sold Barstool Sports for $551 million after agreeing to a sports betting agreement with ESPN. Portnoy only had to pay $1 to get his “baby” back, but the local casino operator had to write down $850 because of the Barstool purchase.
In the deal that allowed Penn to take back control of Barstool Sports, Portnoy stipulated that if he sold the media outlet to another gaming company, he would receive half of the profits.
But Portnoy isn’t going to sell Barstool to DraftKings. He declared he wouldn’t sell his business once more. It is believed, nevertheless, that Penn required Barstool to abide by a non-compete agreement for a mere six months after the agreement with Portnoy. That may be the equivalent of a mistake that is allowing for a contract with DraftKings.
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According to Sportico, a clause in the agreement reached with Penn regarding the separation prohibited Barstool Sports from returning to the betting market before the conclusion of the current NFL season. Since Sunday, February 11 is Super Bowl Sunday, any agreement reached by Barstool and DraftKings today would not be made public until after the big game.
Even though Barstool hasn’t had a direct relationship with a sportsbook operator in a few months, sports-wagering content is still a mainstay of the publication, so it’s probably only a matter of time until it collaborates with another gaming business.
Penn’s partnership with ESPN is said to have helped DraftKings because the operator had what was thought to be an expensive relationship with the sports network.
A Barstool Sports/DraftKings partnership makes sense for the following reasons. Among them is the fact that both businesses are based in Boston. It is also the location of DraftKings, where Portnoy founded his business.
Furthermore, DraftKings has demonstrated a talent for astute media deals. The gaming company signed a distribution agreement with Meadowlark Media, the owners of Dan Le Batard’s network of shows, in 2021 and acquired the Vegas Stats & Information Network (VSiN).
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