The company was recently valued at $450 million, but what is its controversial founder’s net worth? On January 29th of this year, Penn National Gaming announced that it was investing $163 million in Barstool Sports for a 36% equity stake. In addition to the sports betting estimates, various sources (Bettor Insider, Statista) are calling for tens of billions in additional gross gaming revenues from iGaming -- which includes online games such as blackjack and slots. Here's Her Update On The State's Response To COVID-19, Stimulus Check Update: 'I Believe We Have A Moral Obligation,' Says President-Elect Joe Biden, WATCH LIVE AT 9:30 AM: Governor Whitmer To Provide Update On COVID-19 Cases And Response, Here's Everything To Know About Michigan's New Indoor Dining Guidelines. According to Goldman Sachs research, Barstool also provides a combined Penn / Barstool with a more significant bettor database than established peers. By subscribing to our newsroom you will get the latest esports news from us. Since it’s debut a month ago the Barstool Fund has raised nearly 30 million dollars to help small businesses across the county during the pandemic. The excitement surrounding it has brought out internet celebrity David Portnoy. Barstoolâs social media following is also vast and significant. Why His Sister Says He Should Stay In Prison, Dr. Oz Asks Scott Peterson’s Sister If She Knows What Caused Him To Kill His Wife And Unborn Child, 'Mr. By the common man, for the common man. Tom Briglia/Getty. They still have to execute and have a great deal to prove, but narratives matter in the stock market. For every story that involves the Patriots, there is one that involves cankles. The company was originally founded by Dave Portnoy in 2003 as a print-only publication focused on fantasy sports and betting. For more information, please visit roundhillinvestments.com or follow us on twitter @roundhill. The $163 million consisted of $135 million in cash and $28 million in stock, and included warrants that would entitle Penn to majority control if exercised (after year 3). While we are in the early innings of the U.S. rollout, expectations are significant. Barstool Sports founder Dave Portnoy personally called to tell him the Barstool Fund chose them to receive money to help them through the pandemic. Once a little-known but profitable regional casino operator, Penn was transformed into a digital-first media and online betting powerhouse. Despite the potential TAM, the U.S. market is currently modest in size (especially relative to mature markets like Australia and the UK). People have strong feelings about Dave Portnoy, the opinionated founder of Barstool Sports who is famous for his man-on-the-street pizza reviews. The company was originally founded by Dave Portnoy in 2003 as a print-only publication focused on fantasy sports and betting. True Crime: Will Scott Peterson's Murder Conviction Be Tossed? While this is true, Pennâs Barstool investment is setting them up for the next couple decades, not the next couple years. CEO of Barstool Sports Erika Nardini joined the Daily Caller to talk about the Barstool Sports fund, which has raised over $12 million dollars for small businesses. How big is the U.S. sports betting opportunity? Barstool Sports is difficult to explain, in the sense that the company itself is somewhat of an enigma. Although Portnoy is already immensely popular among sports fans, this fund has reached people of all interests and is exceeding expectations. He says as he watched states shut down because of COVID-19, he got angry. But while revenues have grown significantly, the companyâs personality remains the same as it ever was. Check out our coverage on the Barstool Sportsbook Launch. It takes years, if not decades, to build that type of brand loyalty. Similar to a livestreaming platform like Twitch or distribution network like Spotify, Barstool has the ability to elevate the reach of the content creators and personalities it brings into the fold. "Sure, … For information on donating to Barstool Sports, or if you’re a business in need of help, go to. Founded by Portnoy, Barstool has created a vision for how sports are covered and analyzed today. Barstool Sports, as long as it has the founder that it does, is making the world a worse place. Dave Portnoy is founder of the sports and pop culture blog Barstool Sports. Perhaps most importantly, throughout its history Barstool has continued to offer an escape from the increasingly buttoned-up sports content on linear TV. He also posted the moment he stepped into the brand new Barstool Sportsbook, which has been years in the making. Barstool Sports is one of the most popular online brands today in the world of sports, comedy, pop culture, sports betting, and more. Elmer’s Place, a popular bar and restaurant near Central Connecticut State University, is the latest foundering establishment to benefit from Barstool Sports’ coronavirus pandemic rescue fund. The company has tens of millions of followers throughout various platforms, including Instagram, Twitter, TikTok, and Snapchat. At first glance, the deal may have seemed like little more than a tactical bolt-on acquisition. (CBS DETROIT)– Starting Friday gamblers in Michigan will no longer need to visit casinos to place a bet. El Pres, Big … After all, we are in the midst of a 21st century âdigital gold rushâ. But Barstool Sports isn’t like any other sports-media company. As such, we believe that Barstoolâs reach can quickly translate into an effective top of the funnel for Pennâs brick and mortar casinos, but more importantly, leverage its brand to launch a successful sports betting app to compete with the likes of DraftKings and FanDuel. More importantly, they have been effective thus far in converting a social audience into paying customers, as e-commerce represented more than $30 million of Barstoolâs 2019 revenues. Barstool’s Kate Mannion is pregnant! © 2021 CBS Broadcasting Inc. All Rights Reserved. @barstoolsports has raised $6M to help small owners, and this owner got the news on Christmas. But as we alluded to earlier, Penn didnât invest for the present -- they invested for the future. Facebook buying Instagram. In the game of customer acquisition, lower costs are king. Portnoy launched the fundraising effort with the nonprofit 30 Day Fund for small businesses impacted by COVID-19 called “The Barstool Fund” last week and contributed $500,000 of his own money toward the effort. Besides sports and pop culture, Barstool Sports is known for Portnoy's one-bite pizza reviews, where he takes a sample of a piping hot slice and gives a score on a scale of 1 to 10. As technology advanced, so did Barstool. All 3 Detroit casinos will participate in sports betting, an industry that’s expected to bring millions in tax revenue for Michigan. Stimulus Check Update: When Could The Third Payment Arrive? Upon seeing these businesses struggle to make ends meet, Barstool Sports founder Dave Portnoy started the Barstool Fund, an online fundraiser seeking to help those in need. Barstool Sports is a digital media company that produces content focused on sports and pop-culture. It generated $1.4 billion in EBITDA for 2019. Learn more about investing in: Esports Sports Betting. They derive a betting audience of 29 million (12 million males aged 21-34) versus 8 million and 4 million for FanDuel and DraftKings databases, respectively. Barstool only generated ~$100 million in revenues in 2019, and while it was fast-growing (+53% and +65% revenue growth in 2018 and 2019, respectively), the media company remained only âmodestlyâ profitable. Summary: As of 2019, Barstool revenues totalled ~$100 million, consisting primarily of e-commerce and merchandising, digital advertising, and podcast revenues. By viewing our video content, you are accepting the terms of our. While the Barstool-branded mobile betting platform hasnât even launched yet (itâs due later this month), Barstoolâs current brand is on par with the current market leaders in U.S. betting. Barstool Sports says it’s selected more than 70 small businesses to receive funds, including eateries like The Eagle House in Williamsville, Squire’s Tap Room in … Dave Portnoy founded Barstool Sports in 2004 If thereâs a single chart that highlights why this deal is one of the best ever, here it is: I think you can guess where they brought Portnoy and company into the fold. “We’ve raised a million dollars so far just for Michigan business, so I think we have a chance to raise 5 to 10 million dollars to give right back to businesses in Michigan who need it”. David Portnoy of Barstool Sports hosts The Pool After Dark at Harrah's Resort on Saturday May 11, 2019 in Atlantic City, New Jersey. Portnoy, Founder and president of Barstool Sports a popular online media site is in Michigan this week, not only promoting his Barstool Sportsbook at Greektown Casino, but helping small businesses in the area get a piece of the betting pie. “To see the impact that we can have, when we say ‘Hey, we’re going to help you keep the lights on for another three months,’ is really incredible, like I’ve been crying non-stop,” Nardini said. Barstool consumers are fans. Barstool Sports Founder Dave Portnoy Creates Fund To Help Struggling Small Businesses, Starting With Borrelli’s In East Meadow EAST MEADOW, N.Y. (CBSNewYork) – A Long Island business is getting financial help from an unlikely source. In its early years, distribution focused exclusively on the Boston metropolitan area. Who is Kate from Barstool? In more recent years, the model has in part shifted to more involved partnerships with linear broadcast networks, including William Hill / CBS, Fox Bet / Flutter, and more recently PointsBet / NBC. As you can see, only one company, Penn National, is getting credit for adapting and evolving towards a digital-first future. And so what brought them in at very top is also what’s going to get them to bet.” In its early years, distribution focused exclusively on the Boston metropolitan area. Opening weekend numbers, downloads, and more! As illustrated below, 65% of Barstoolâs audience -- which as of January included 66 million unique visitors a month -- is aged 21 to 44. This means that sportsbooks are focused on customer acquisition and scale, favoring top line growth and user acquisition over short-term profitability. All you’ll need is a computer or cell phone. Here’s everything you need to know to be in the loop. Many skeptics will highlight that younger bettors donât have the wallet size of their older counterparts. It is endorsing harassment and cruelty and bullying. Does This Prove That Hank Aaron Was Juicing? They love the Barstool brand, and they love the Barstool personalities. The New York resident made what he called a video "rant" about state and … The long anticipated online sports betting is now legal in Michigan and just a click away. In 2007, the year the original iPhone was introduced, Barstool shifted to online distribution. Nearly a dozen online operators are available for gamblers, that must be at 21 years old. Disneyâs takeover of Marvel. His … Whitmer's Press Conference? Thatâs where Barstool fits in. Thatâs typically how the best deals play outâ¦but Dave Portnoy and Barstool Sports arenât your typical acquisition target. Barstool Sports fundraiser helps support small Chicopee business during pandemic. When Penn announced the Barstool acquisition in January, the companyâs prospects changed overnight, if only in the eyes of the stock market. Investors loved the deal. And alongside the shift, the company would grow its fanbase exponentially, primarily targeting young (and male) sports fans. Examples of execution abound, but a few to note include: This expansion has highlighted the evolution of Barstool into a platform. Dave Portnoy, owner of Barstool Sports, initiated this national fundraising effort on Dec. The Swampscott, MA native is no stranger to restaurant industry. Kate is a sports commentator on the Barstool Sports website. Jeff Bartos co-founded the Pennsylvania 30 Day Fund with a group of local business leaders and worked with Barstool Sports to help save Reading Terminal Market. He posted a series of online videos as he toured around Michigan trying out local pizza restaurants. The regional gaming operator already managed 41 properties across 19 states, totaling $5.3 billion in 2019 revenues. Founded by David Portnoy in 2003, this digital media company is now owned/operated by Penn National Gaming and The Chernin Group. When online betting went live at noon on Friday, his Barstool Fund quickly started generating revenue for small businesses. This is all to highlight the significant value that Barstool will likely bring into the Penn ecosystem. ©2021 CBS Broadcasting Inc. All Rights Reserved. Googleâs purchase of YouTube. This has translated to significant app download volume for Barstool Bets, a free-to-play contest and entertainment app -- on par with that of BetMGM -- despite lacking any sports betting functionality. Barstool brought the awareness, Penn brings the operational fortitude and existing presence in 19 states (several of which are yet to offer regulated mobile betting). Barstool Sports Founder Dave Portnoy is known for his pizza reviews throughout the country, and while in Detroit this week, he stopped by one of Detroit's favorites. BARSTOOL SPORTS SAVIOR: @mackstenders201 went from facing bankruptcy to a sales record overnight all thanks to @BarstoolFund. On the companyâs second quarter conference call, Penn highlighted 25% growth in the 21-45 age demo for its regional brick and mortar assets, likely a direct result of the Barstool tie-up. Dave Portnoy, founder of media company Barstool Sports, has raised $3.4 million for 10 small businesses as of Thursday. Note: Morgan Stanley expects 25% EBITDA margins for online betting at maturity, higher for iGaming. However, typically it takes years for such transactions to fully realize relevant synergies, value creation and ultimately, shareholder value. Mom': Male Orangutan Steps Up To Care For 2-Year-Old Daughter After Death Of Matriarch. “It’s a great feeling to help others” Said Portnoy. Just this month, Barstool signed a multi-year deal with ex-NFL star (and TV network host) Deion Sanders. Theyâre monetizing memes to the tune of tens of millions of dollars per year. Barstool Sports is at the top for the funnel, bringing people in through all manner of engagement and spitting them out at the sportsbook app. Portnoy is the founder of multimedia site Barstool Sports and a University of Michigan alum. 2020 ROUNDHILL FINANCIAL INC. All Rights Reserved. Roundhill Investments is a registered investment adviser and ETF sponsor focused on thematic and sector-specific investing. Barstool has become one of the most popular and outspoken media companies in the sports world, and Portnoy is the brainchild behind it all. As the company continued to operate outside of mainstream media, it naturally developed a cult following. Barstool Sports - By the Common Man, For The Common Man Follow all the action at The Stool with our first app that actually works - live video, podcasts, and blogs with the hottest takes only from the funniest personalities on the internet. 9.4m Followers, 173 Following, 10.8k Posts - See Instagram photos and videos from Barstool Sports (@barstoolsports) Barstool Sports Portnoy Uses Online Sports Betting To Help Michigan Small Businesses During PandemicDavid Portnoy, Barstool founder in Detroit promoting new online sports betting in … This came at a time when New York City was forced to close indoor dining. Various assumptions abound in each forecast, most importantly those related to the state-by-state regulatory process. While millions of viewers watched ESPN, they arenât necessarily âESPN fans.â Barstool was -- and is -- different. These individuals can not only grow their personal brand, but grow alongside that of broader Barstool (think content creators joining FaZe Clan, or 100 Thieves). The Barstool Fund, created by Company President Dave Portnoy, has helped raise more than $20 million for … Yet despite the minimal impact of the acquisition to Pennâs current bottom line, the market reacted right away. 38% comes from the highly-coveted 21-34 age range. A different (and improved) story Below is a comparison of EV/EBITDA multiples for Penn versus its peer group. “When I walked into the sportsbook for the first time, I had to pinch myself because it just didn’t seem real. Penn National, meanwhile, was a $13.9 billion enterprise value company. Moving forward, Penn and the Barstool betting app are well-positioned to capture market share in a multi-billion dollar market. Barstool Sports is a sports & pop culture blog covering the latest news and viral highlights of each and everyday with blogs, videos and podcasts. Since the first launch in Virginia, the 30 Day Fund launched in Pennsylvania, Georgia, Mississippi, Arkansas, and New Jersey. To further this point, I canât ever recall a âbolt-onâ deal that ever had this kind of impact on brand awareness for the acquirer. The site is designated "For the common man, by the common man" and its posts are influenced by New England sports but are not central to this one theme. Barstool sports is a blog based in Boston, MA and is run by Dave Portnoy aka El Pres. Toddler Fatally Shoots 5-Year-Old Cousin While Playing With Gun, Missed Gov. We create thoughtful investment products designed to help investors express their vision of the future. This, all in an effort to help save small businesses in the state that’s struggling to stay afloat. Barstool Sports and recycling company Republic Services have teamed up to create a public service announcement that asks beer drinkers nationwide to keep their aluminum cans out of landfills. Historically, the gamblng industry has focused on client acquisition via a combination of third-party lead generation and traditional advertising (where permitted). The happy announcement went out yesterday and fans of the sports website will be thrilled to hear the good news about their favourite commentator. To understand why, it's important to try and understand Barstool, and how it fits in the broader Penn story. In retrospect, the best mergers and acquisitions always look obvious. Fast forward to today, and Barstool has further leveraged technology -- social media, podcasts, blogs, YouTube -- to expand their reach and build diversified business lines. This material may not be published, broadcast, rewritten, or redistributed. The thought here is simple -- eyeballs build brand awareness and eventually lead to new customers. 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