Curious about Dave Portnoy’s wealth and income?
With a net worth of $150 million, Dave Portnoy is an American sports media icon and online business tycoon. His fortune was amassed through the creation of the digital sports entity Barstool Sports. Portnoy orchestrated various sell-offs to different investors, culminating in a deal with Penn Gaming in August 2022.
In 2016, The Chernin Group acquired a majority stake. Penn Gaming purchased a 36% stake for $163 million in January 2020, with the option to acquire the entire company later. This option was exercised in August 2022, valuing Barstool at $390 million. The total paid by Penn Gaming for full ownership was $550 million. The impact of these transactions on Portnoy’s wealth will be discussed further in this article.
In a surprising turn, on August 8, 2023, Dave regained control of Barstool from Penn Gaming. This move marked his full ownership of the brand after nearly a decade. Reports suggest he reacquired Barstool for a meager $1.00. More details on this acquisition will be explored later.
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Portnoy’s Background
Born on March 22, 1977, in Swampscott, Massachusetts, David Portnoy graduated from Swampscott High School and later the University of Michigan in 1999 with a degree in education.
Post-college, he relocated to Boston and worked for a tech market research firm called Yankee Group.
In 2003, Dave founded Barstool Sports as a local publication in Boston, expanding online in 2007. Over the next decade, Barstool evolved into a prominent sports media outlet. In its early days, Portnoy put in long hours, even working weekends.
Identified as “El Presidente” or “Stool Presidente” on the platform, Portnoy’s site mixes sports commentary with other content. BarstoolSports is now a leading sports destination online, blending sports news with entertainment.
In 2017, Portnoy launched a popular pizza review series, “One Bite with Davey Pageviews,” aiming to review every Manhattan pizzeria.
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The Chernin Group Deal
In January 2016, Portnoy sold a share of Barstool to The Chernin Group for $10 – $15 million. By 2018, Chernin increased the stake to 60% with $20 – 25 million in investments. Despite this, Portnoy retained full control over the company’s content, expanding its offerings.
Penn National Partnership #1
In January 2020, Penn National Gaming purchased a 36% stake in Barstool at a $450 million valuation, initially paying $163 million. Following this, The Chernin Group’s stake dropped to 36%, aligning it with Penn National’s share. The remaining 28% was held by Portnoy and select executives like CEO Erika Nardini.
Penn Gaming’s Performance
Post-announcement, Penn Gaming’s stock surged to a record high of $38 but later dipped due to the pandemic. By 2021, it had recovered, exceeding $130.
As per Penn Gaming Q1 2020 filings, Portnoy received convertible preferred stock and forward contracts worth $23 million and $3 million, respectively. These, along with his stake in Barstool, contributed to an estimated net worth of $100 million.
Further Acquisition by Penn National
Penn subsequently bought an extra 14% of Barstool for majority ownership. A 2022 SEC filing confirmed Penn’s acquisition of the remaining 50% stake in Barstool for $387 million.
Barstool Returns to Portnoy
In an announcement on August 8, 2023, coinciding with Penn’s ESPN deal, Portny shared his repurchase of Barstool, including a rights agreement with Penn. The return to complete ownership and a $1.00 transaction reflected a favorable outcome for both parties. In a statement from Penn’s CEO:
“The sale allows Barstool to refocus on its authentic and distinct content for its devoted audience, free from the limitations of a publicly traded gaming entity.“
Sources reveal that the reacquisition of Barstool by Portnoy was facilitated for a nominal sum of $1.00, marking an intriguing development.While it may be argued that the brand is essentially worthless without Dave and unlikely that he would have agreed to work under a new owner, there are several significant factors to consider. Firstly, Penn retained the right to half the proceeds if Barstool is ever sold again. Secondly, Penn Gaming is likely taking a writeoff on the brand’s value amounting to an $850 million loss. This includes the $550 million paid in transactions and $300 million in various costs and investments. Additionally, the sale imposes restrictions on Portnoy, preventing him from working for a competing betting company or making disparaging remarks about ESPN or Penn Gaming.
“PENN sold 100% of the outstanding shares of Barstool to David Portnoy in exchange for a nominal cash consideration ($1.00) and certain non-compete and other restrictive covenants.”
The Barstool Fund, initiated in 2020 during the peak of the COVID-19 pandemic, received a $500,000 donation from Dave. The fund raised $39 million and aided nearly 350 affected small businesses.
In his personal life, Dave was married to Renee Satherthwaite from 2009 to 2017 and is currently dating Silvana Mojica.
Regarding real estate, Dave Portnoy has been associated with several property acquisitions over the years, including a home in Nantucket for $2.2 million, a Miami waterfront home for $14 million, a Hamptons house for $9.75 million, and a Saratoga Springs property for $1.4 million. In a notable purchase in September 2023, Portnoy acquired a waterfront mansion on Nantucket set on 1.2 acres for $42 million, setting a new area record.
In 2004, Dave encountered financial challenges, reportedly filing for bankruptcy due to substantial gambling losses totaling $59,000 in credit card debt and $18,000 owed to his father.
The content draws from data spanning 2023, 2024, and forecast data projecting into 2025, 2026, 2027, and 2028.
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