On January 24, 2024, reports emerged that Barstool Sports, founded by David Portnoy, and DraftKings are in advanced discussions regarding a potential marketing partnership. This partnership may see Barstool Sports reenter the betting space after its recent split from Penn Entertainment.

According to the reports, the two companies are negotiating a traditional marketing partnership that would involve Barstool Sports promoting DraftKings odds and directing readers and viewers to the operator’s online sportsbook. While no official deal has been reached, it is believed that the potential partnership could be worth more than $10 million annually for Barstool Sports.

Since its separation from Penn, Barstool Sports has not been able to secure a betting marketing agreement with another operator. The split occurred after Penn acquired Barstool Sports for $550 million and subsequently signed a sports betting deal with ESPN, leading to Barstool’s reacquisition by Portnoy for just $1.

However, it has been reported that the agreement between Penn and Portnoy, under which he regained control of Barstool Sports, included a provision that would entitle the casino operator to 50% of the economics if he sold the media outlet to another gaming company. Despite this, it is unlikely that Portnoy will sell Barstool Sports to DraftKings.

It has also been suggested that a noncompete clause of just six months may have been an oversight by Penn, paving the way for a potential agreement with DraftKings. This could mean that an official announcement of a deal between Barstool Sports and DraftKings may not occur until after the current NFL season.

The potential partnership between Barstool Sports and DraftKings is believed to make sense for both companies. DraftKings has reportedly benefited from partnerships with media companies in the past, and both Barstool Sports and DraftKings have roots in Boston, making for a potential synergistic relationship. Additionally, DraftKings has a track record of successful media deals, further solidifying the potential partnership.

By admin

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