Dave Portnoy’s Barstool Sports is reportedly in talks with DraftKings approximately a go back to sports activities having a bet, simply months after exiting the activity.
According to unnamed reassets quoted in Sportico, talks have centered round a multi-12 months settlement that could pay Barstool “withinside the low 8 figures according to 12 months”.
This might be withinside the shape of an associate advertising deal, with Barstool selling DraftKings odds and receiving a reduce from clients it correctly directs to the operator’s sportsbook.
Under the terms, Barstool might now no longer be licensing its logo for a sportsbook product, because it did so formerly with Penn Entertainment.
No deal has been finalised because of a non-compete in Barstool’s settlement with Penn that reportedly expires after the Super Bowl on eleven February.
Penn sells Barstool for $1
Penn Entertainment, which had formerly operated the Barstool logo, offered the commercial enterprise returned to Portnoy for simply $1 in August, with a settlement that included “positive non-compete and different restrictive covenants”.
Many commentators to start with assumed this non-compete to be permanent, or at the least legitimate for an extended duration than six months.
Penn, which has because released ESPN Bet, is likewise entitled to 50% of the proceeds of any sale of the commercial enterprise in future.
In February 2020, Penn to start with paid $163m for a 36% stake withinside the commercial enterprise, opting to buy the last 64% 3 years later for $388m.
The plan changed into for Barstool to behave as Penn’s flagship media-led on-line playing logo withinside the US. The sports activities having a bet platform continued blended fortunes, reporting an approximate 5% marketplace percentage.
However, Penn threw that method overboard in August 2023 whilst it agreed a $2bn deal to licence Disney-owned ESPN, the maximum famous sports activities media logo withinside the US.
In the announcement, Penn set its sight on achieving $500m-$1bn in long-time period EBITDA and a goal marketplace percentage of 20% with the aid of using 2027.
The first complete month of information in Iowa and Pennsylvania noticed ESPN Bet take an approximate 8% marketplace percentage.
While nevertheless early days, this stands Penn in firmly second-tier status, degree with Caesars Sportsbook and in advance of BetMGM in the ones markets.