SportsUSBetting Exclusive on Barstool & ESPN Deals:
BOSTON – The US sports betting scene has been rocked by a sequence of deals and reversals in recent times, headlined by Barstool Sports’ separation from the sportsbook world and its subsequent reconnection with its original helmsman, Dave Portnoy. This move comes amidst ESPN’s ambitious foray into the sports betting domain with a whopping $1.5 billion deal with Penn Entertainment.
Barstool Sports, known for its maverick approach to sports commentary, has transitioned back to its founder, Portnoy, marking its exit from the broader world of regulated gambling. Penn Entertainment, which had a significant investment in Barstool, opted to divest it for a nominal sum of just $1. Portnoy’s exhilaration on this development was evident, emphasizing that the essence of Barstool’s content might not have been a perfect fit within the confines of regulated gambling. However, stipulations from the divestment deal state that any future sale or “monetization” of Barstool would entitle Penn to 50% of the gross proceeds.
Parallelly, the sports media titan, ESPN, is steering its brand into new territories, as it collaborates with Penn Entertainment to birth ‘ESPN Bet’. This rebranded sports-betting application is backed by a $1.5 billion licensing agreement, a move that nudges Disney Co, ESPN’s parent company, into the contentious space of sports gambling. Disney, historically protective of its family-centric image, is now navigating this delicate juxtaposition.
The partnership entails mutual endorsements, with ESPN promoting the ESPN Bet app across its expansive broadcast and digital spectrum. As a feather in the cap, ESPN Bet will also benefit from privileged access to ESPN’s talent pool.
Diving deeper into the financial intricacies, beyond the upfront licensing cost, Penn has also agreed to offer ESPN rights approximated at $500 million, which could potentially allow ESPN to acquire stakes in Penn Entertainment. This deal, tentatively spanning a decade, holds provisions for an additional ten-year extension through mutual consent.
ESPN, threading cautiously, has stressed on its commitment to promoting responsible gaming and maintaining “journalistic integrity”, while also introducing internal measures like the “responsible gaming” committee and crafting fan-centric marketing guidelines.
Amid these seismic shifts in the sports betting landscape, one thing is clear – the arena is evolving at a breakneck speed, and we, at SportsUSBetting (SUSB), are here to keep you updated every step of the way.
