One of the challenges for many key figures at platforms is the balance between taking outside deals (both for individual money and for potential exposure) or keeping all their content in-house. The former can be more immediately rewarding, but the latter has the potential for higher long-term rewards.
But sticking with content just on your own platform comes with more risk as well. So that’s always an interesting decision. And the latest notable thing there is Barstool Sports founder (and recent complete owner of the company) Dave Portnoy’s comments to Barstool host Kirk Minihane on Minihane’s podcast last week.
There, Portnoy talked about how he was close to signing a deal with SiriusXM for a radio show. (Barstool has had some SiriusXM deals over the years.) But he instead opted to decline that in favor of putting any of his own content on Barstool’s own platforms. Here’s a transcription of that from Jordan Bondurant at Barrett Sports Media:
“We came very close to getting a deal, actually,” he said, adding there was nothing SiriusXM did wrong to make him turn down a two-year contract. “They did everything right to get the deal.”
The show would have aired four days a week for two hours a day. Dave didn’t provide specifics regarding financials offered or what channel his show would’ve aired on, but he felt good about the package the company submitted.
“I was happy with what it was. Money was not the issue,” he said.
…“If I’m going to spend that much time, I want to be doing it on Barstool stuff for Barstool. Whatever it may be,” Portnoy said. “It really felt like would have hindered everything else I do.”
There’s some logic to that. After selling minority and then majority control of Barstool to gambling company Penn Entertainment (in 2020 and 2023 respectively), Portnoy bought back 100 percent of the company for $1 (and some non-compete and future sale division clauses) this August ahead of Penn’s deal with ESPN. So anything that boosts that company will certainly boost his personal wealth. And while he could possibly get more money upfront in a deal with SiriusXM, bolstering Barstool might be better for him financially in the long run.
But that is a gamble. It’s not a unique one to Portnoy; The Ringer’s Bill Simmons recently spoke about how they declined some external investment (ahead of their 2020 acquisition by Spotify) in order to try and grow the brand more. But it doesn’t all work out well, and not all internal bets wind up paying off. We’ll see if this one does for Portnoy.
