ESPN Just Entered The Betting Market

DJ Tebow said:
The fact they sold Barstool back to Portnoy for $0 after giving him $600M for it.

Level 1000 IQ move by Penn.
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RubinRock said:
They weren't able to get the necessary licensing with the Barstool name attached to them. Something like this had to be done from Penn's point of view. But Portnoy comes away from all this looking like a genius.
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Portnoy is an asshole but a rich one that hit the lottery twice. He claims he will never sell again but within 3 years he will cash back out again.
 
DJ Tebow said:
Yea, it's pretty fucking hilarious though from all sides.


Disney be like, "we're all about the children and being good and yay.....hey, kids wanna gamble and develop an addiction?"

Penn be like, "gosh, Barstool was such an anchor for us with all the gambling commissions, yo Dave, you want this thing back...for free?"

Portnoy...lol.
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Disney is trying to position ESPN for sale and the gambling element makes it more valuable.

When they sell it watch them use the argument that betting didn’t mesh with their family values.
 
Wild Turkey said:
Portnoy is an asshole but a rich one that hit the lottery twice. He claims he will never sell again but within 3 years he will cash back out again.
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Maybe. The deal is that if he sells it then 50% goes to Penn. So not sure he's going to be in a hurry to sell. Granted he essentially just got $500 mil for...owning the same company a few years later. So even if he gives up 50% of a sale in the future, its a major profit for him.
 
RubinRock said:
Maybe. The deal is that if he sells it then 50% goes to Penn. So not sure he's going to be in a hurry to sell. Granted he essentially just got $500 mil for...owning the same company a few years later. So even if he gives up 50% of a sale in the future, its a major profit for him.
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I doubt he'll get many worthwhile offers at this point with how soft society is becoming and the fact Penn literally gave them away for free because of how toxic they are perceived to be.

As someone who used to hate Barstool and Portnoy for years, now I'm consuming a LOT of their content and think the whole thing from the beginning with being stupidly overvalued, is fucking hilarious.
 
RubinRock said:
Maybe. The deal is that if he sells it then 50% goes to Penn. So not sure he's going to be in a hurry to sell. Granted he essentially just got $500 mil for...owning the same company a few years later. So even if he gives up 50% of a sale in the future, its a major profit for him.
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If someone offers him 200mm and he can only keep 100mm how do you not sell?

It's free money at that point and a lot of it.
 
Wild Turkey said:
If someone offers him 200mm and he can only keep 100mm how do you not sell?

It's free money at that point and a lot of it.
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I see where you're coming from, but whats another 100mm to a guy that never needs money again? Maybe he wants to buy a yacht and that extra money matters. Maybe he doesn't give a shit about another dime and just cares about legacy. Who the hell knows.

But like @DJ Tebow mentioned, think they will have a hard time getting a significant offer in the future when they can't get into gambling scene anymore. While the company can still grow and be successful, it puts a cap on them.
 
Red_Alert said:
"ESPN’s talent will promote the betting service."

I've always been suspicious they've been involved anyway.

Their so called 'talent' has pimped some bad bets through the years.
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That's nothing new though. When gambling was illegal, all studio shows did it. There's a reason you'd see the studio guy go "I think Dallas wins 24-20" and if you find a line somewhere, its Dallas -3. Or you'd see someone say "(Quarterback) has been playing well lately. Could see another 3 TD game". That's code for a prop bet. Since it got legalized, those segments changed into sponsored Draftkings of Fanduel segments. They don't have to wink at it anymore so you see them straight up Dallas -3 or Over/Under 2.5 TDs or whatever prop. Now, ESPN is just skipping the Draftkings thing and doing their own service (well Penn runs it with the ESPN name)
 
RubinRock said:
They weren't able to get the necessary licensing with the Barstool name attached to them. Something like this had to be done from Penn's point of view. But Portnoy comes away from all this looking like a genius.
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Eh...it's not quite genius for Portnoy. This thread has the relevant details on the deal. He comes out ok, but he also potentially loses a big avenue for sponsor revenue (the non-compete) and still owes Penn 50% if there's a sale.

 
wildturkey said:
Eh...it's not quite genius for Portnoy. This thread has the relevant details on the deal. He comes out ok, but he also potentially loses a big avenue for sponsor revenue (the non-compete) and still owes Penn 50% if there's a sale.

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bro, he made $500M (or 600, I saw a video from him saying 600 today...) and has 100% ownership back for $0.

That's genius shit.

Penn paid him $500M for literally nothing, as it stands.
 
DJ Tebow said:
bro, he made $500M (or 600, I saw a video from him saying 600 today...) and has 100% ownership back for $0.

That's genius shit.

Penn paid him $500M for literally nothing, as it stands.
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He already made the money from the sale. This move just gives him full control back creatively as opposed to the partial he had before where ultimately things had to cleared by Penn for licensing reasons. But he's got restrictions on the company in certain areas now. And the non-compete could actually be somewhat limiting for the Barstool business because they can't advertise with Draftkings, Fanduel, etc which is a big revenue source for places like Barstool. It's not a bad move him personally. I never said that. But its not exactly genius either. He didn't really do anything here.

What this is more about is Penn made a bad move initially partnering with Barstool, then just washed their hands of it.
 
wildturkey said:
Eh...it's not quite genius for Portnoy. This thread has the relevant details on the deal. He comes out ok, but he also potentially loses a big avenue for sponsor revenue (the non-compete) and still owes Penn 50% if there's a sale.

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That mostly just confirms it was a great deal. So what if he only gets 50%. In the end, he was given $500mil for nothing. That 50% is an additional amount to the already free money
 
wildturkey said:
He already made the money from the sale. This move just gives him full control back creatively as opposed to the partial he had before where ultimately things had to cleared by Penn for licensing reasons. But he's got restrictions on the company in certain areas now. And the non-compete could actually be somewhat limiting for the Barstool business because they can't advertise with Draftkings, Fanduel, etc which is a big revenue source for places like Barstool. It's not a bad move him personally. I never said that. But its not exactly genius either. He didn't really do anything here.

What this is more about is Penn made a bad move initially partnering with Barstool, then just washed their hands of it.
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How is getting complete ownership of your company back for free, not really doing anything?

Then to add a sale clause where he will still get 50% of anything...

Guess we have different ideas of genius.
 
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