Barstool Sports is getting back in the sports betting game.
Five months after Penn Entertainment sold the company back to founder Dave Portnoy in favor of a deal with ESPN to rebrand its sportsbook, Barstool Sports is nearing a deal with DraftKings, according to Eben Novy-Williams of Sportico. As opposed to its previous partnership with Penn, which hosted the Barstool Sportsbook before its ESPN rebrand, this will be a more traditional marketing deal that will see Barstool promote DraftKings odds and benefit from customer referrals to the sportsbook.
Due to a noncompete agreement with Penn, Barstool reportedly won’t be able to complete the deal until after the Super Bowl. According to Sportico, the multiyear agreement being discussed would pay Barstool Sports “in the low eight figures” annually.
It figured to only be a matter of time until Barstool reached a new sports betting partnership post-Penn, as the company has produced no shortage of gambling-related content dating back to its inception. It’s notable that rather than leasing its naming rights to another operator, Barstool is opting for a more traditional endorsement deal, similar to the ones that DraftKings has with several other outlets and celebrities.
Although it’s somewhat surprising that Barstool’s noncompete agreement with Penn appears to only be for six months, it also falls in line with the sportsbook operator’s decision to sell the company back to Portnoy for only $1, despite originally purchasing it for more than $550 million. It will be interesting to see how much of a Barstool presence DraftKings has on its app as a result of the deal and whether it ultimately leads to any Barstool content airing on the DraftKings Network.
It’s been a busy few weeks for Barstool Sports, with CEO Erika Ayers Badan announcing her impending departure from the company last week. On Monday, the company announced a new partnership with Rumble, giving the anti-cancel culture video platform access to all of its content.
[Sportico]
