DraftKings and Barstool Sports are in Partnership Talks
DraftKings and Barstool Sports are in partnership talks. They appear to be in advanced discussions regarding a marketing partnership. This could see the sports media entity reenter the betting space following its recent divorce from Penn Entertainment. This would seem to be a more traditional partnership that would see Barstool Sports promote DraftKings odds and refer readers and viewers to the operator’s online sportsbook. Nothing is official yet, but it is believed the deal could be worth around $10 million a year to Barstool.
David Portnoy is the owner of Barstool Sports. He was able to reacquire the company from Penn last August. Since then he hasn’t been able to sign a betting marketing agreement. Penn paid $551 million to acquire Barstool Sports, but then went on to ink a sports betting deal with ESPN. Once they did that they quickly dumped Barstool. Portnoy paid just $1 to buy back his “baby”.
The agreement between Penn and Portnoy, under which he regained control of Barstool Sports, contained a provision that the casino operator would be entitled to 50% of the economics should he sell the media outlet to another gaming company. However, Portnoy will not be selling Barstool to DraftKings. It is believed that Penn stipulated Barstool be subject to a noncompete clause of just 6 months following the deal with Portnoy.
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