Dave Portnoy buying back $551,000,000 Barstool leaves Jason Whitlock stunned - "Didn't see this coming"

Dave Portnoy's acquisition of Barstool Sports, which he had sold to PENN Entertainment for $551 million, has surprised many observers, with Jason Whitlock among them. In a development that few saw coming, the founder of Barstool brought back his own brand from PENN as part of a domino effect of wider market realignment.

ESPN signed a deal with PENN Entertainment which involved Barstool Sports being sold back to Portnoy.

Jason Whitlock said he was blindsided by the move:

"Wow. This is fascinating. Good for Barstool and Portnoy. Didn't see this coming."

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Why did Dave Portnoy buy back Barstool Sports from PENN Entertainment?

Dave Portnoy got to buy back Barstool Sports at no cost after he had sold it for $551 million to PENN a few years earlier.

After PENN entered into an agreement with ESPN, it made no sense for them to hold on to Barstool Sports, as PENN is the market leader in the field. Therefore, they let it go for free with some conditions.

Barstool now has a no-compete clause with PENN, meaning it cannot advertise any sportsbooks. Moreover, it cannot launch its own sportsbook as per the terms. Finally, the deal also says that PENN will receive 50% of the gross proceeds received by Dave Portnoy “in any subsequent sale or other monetization event of Barstool.”

For Portnoy, it means that he now gets to own the brand that he created. It's a win-win for both parties.

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Dave Portnoy's net worth

Given the no-compete clause and other conditions, Dave Portnoy would have to find other revenue streams for Barstool. He has some money to spend, having generated a significant net worth based on the brand value of his creation, despite the many controversies that saw him banned from NFL games.

His net worth is estimated to be around $100 million.