In an exclusive interview on the X platform, Dave Portnoy, the brains behind Barstool Sports, revealed the astonishing story of how he turned a one-dollar business acquisition into a colossal $600 million empire. The interview quickly went viral, shedding light on the incredible ups and downs faced by his company in a world governed by formidable regulators.
Portnoy explained that Barstool Sports had initially been sold to PENN Entertainment, a gambling giant keen to boost its sports gambling division. However, this partnership ran into insurmountable challenges when it came to dealing with gambling regulators.
“How did you do that,” Carlson curiously asked.
“I think right place, right time. We’re talking a little bit I probably owe all my haters of which there are many a thank you postcard maybe.”
“We built the business. We have a lot of fans over the course of 20 years and accumulated some people who don’t like us,” Portnoy added, agreeing they have the most “fervent haters.”
“We sold the company to PENN Entertainment, which is a gambling company regulated by the government. And what happened was, the regulators, there are a few that do not care for me,” Portnoy narrated.
Over the course of three years, Barstool Sports found itself locked in a battle with what Portnoy described as “unelected” regulators who possessed the power to change rules and laws at their whim. These regulators took a particularly critical view of Portnoy’s center-right leanings and the content produced by Barstool Sports.
“We were on trial, and we’re the only ones on trial. It didn’t matter what the background or the histories of the other gambling companies, so it became really difficult for us to succeed in this business when, you know, for example, we weren’t allowed to do college football game day shows,” he said.
Portnoy recounted how they faced intense scrutiny and numerous restrictions, including a ban on hosting college football game day shows. This was primarily due to concerns about “underage gambling,” he said.
Eventually, PENN Entertainment decided to sever ties with Barstool and instead joined forces with ESPN. Surprisingly, this move turned out to be a windfall for Portnoy. In essence, PENN handed the reins of the company back to him for a meager sum of one dollar.
“So that’s why I say ‘thank you’,” he quipped.
Portnoy confirmed that PENN had initially paid around $600 million for Barstool Sports and then chose to relinquish it due to a multitude of regulatory complications.
During the interview, Tucker Carlson, with an intrigued expression, questioned the rationale behind PENN’s decision to effectively give the company back for free.
“The regulators make it impossible to make it profitable, which I totally understand, but then how did they get to the point where like, hey let’s just give up back to Portnoy for free,” Carlson asked laughing.
Portnoy explained that PENN had forged a significant partnership with ESPN and that Barstool Sports was not proving profitable under its stewardship.
“So I do think they cared about the future of Barstool, but not only that. They just formed a huge relationship with ESPN. Gigantic company. You have Barstool over here, we’re supposed to do media engine and we’re losing money,” he said.
Portnoy also emphasized that the business had consistently turned a profit when he was at the helm.
Portnoy made it clear that despite imminent layoffs, he was committed to taking care of the dedicated employees who had been with the company for many years. Although he did not specify which roles would be affected, it appeared that human resources and regulatory positions would bear the brunt of the cuts.
The Daily Netizen 