Barstool Sports starts layoffs as Dave Portnoy takes back control.
The popular sports media platform Barstool Sports is letting go of some of its staff members. This happens after the company, which specializes in a mix of sports and "bro culture," was sold back to its founder, Dave Portnoy, following a financially troubled partnership with Penn Entertainment.
Penn Entertainment, a regional gaming company that runs 43 casinos in 20 states and online sports betting in 17 markets and iGaming in five states, previously purchased a 36% stake in Barstool Sports for $163 million. They then bought the remaining 64% for $364 million, making their total investment in the company $527 million.
However, in a surprising turn of events, Penn announced a $1.5 billion partnership with Disney-owned ESPN in June, creating a new sportsbook operation named ESPN Bet. A part of the agreement included Penn selling Barstool back to Portnoy for only $1.
Penn executives didn't anticipate the regulatory challenges Portnoy's reputation presented. Barstool Sportsbook faced rejection for gaming licenses in various states due to concerns about Portnoy's past, which he may not be considered acceptable for a state-issued gaming license.
Barstool Layoffs
Before Penn's acquisition of Barstool Sports, the company had around 130 employees. After the takeover, the staff count increased by about 300 positions. Unfortunately, those working in the sports betting and gaming sectors will lose their jobs.
Portnoy has acknowledged the need for layoffs since Penn's takeover, saying, "Anyone paying attention, we're going to have layoffs and cuts, and they've started, and it sucks." He continued, "I hate firing people. You can be incompetent, not work, and I generally don't fire because I hate it so much. It's the worst thing to do."
Portnoy confirmed this week that 100 people have already been laid off.
"Having said that, we're in a position where it's a no-brainer. We have to get back to a break-even thing. We're losing a lot and it sucks," Portnoy stated.
Now, Barstool Sports is returning to its roots, focusing on its blogs and social media content. Recently, Portnoy's review of Dragon Pizza in Somerville, MA, gained national attention when he declared it the "worst pizza place in America."
A heated argument between the pizza parlor's owner and Portnoy resulted in a massive response from Barstool's social media followers.
Penn's Sports Betting Units
Come winter, Penn Entertainment will no longer operate Barstool Sportsbooks at its casinos or online. Instead, the ESPN Bet books will take their place, both physically and online in applicable territories.
Penn officials confirmed that they will continue to utilize theScore brand for their sports betting operations in Canada. They purchased theScore for $2 billion in the August 2021 acquisition of Score Media.
Here's the original link to the post: Barstool Layoffs, Penn Sports Betting Units, and More
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