When online betting went live at noon on Friday, his Barstool Fund quickly started generating revenue for small businesses. Nearly a dozen online operators are available for gamblers, that must be at 21 years old. Founded by Portnoy, Barstool has created a vision for how sports are covered and analyzed today. Penn National, meanwhile, was a $13.9 billion enterprise value company. Fast forward to today, and Barstool has further leveraged technology -- social media, podcasts, blogs, YouTube -- to expand their reach and build diversified business lines. After all, we are in the midst of a 21st century “digital gold rush”. To further this point, I can’t ever recall a “bolt-on” deal that ever had this kind of impact on brand awareness for the acquirer. Barstool Sports, as long as it has the founder that it does, is making the world a worse place. 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. ©2021 CBS Broadcasting Inc. All Rights Reserved. Yet despite the minimal impact of the acquisition to Penn’s current bottom line, the market reacted right away. Whitmer's Press Conference? Roundhill is built on the primary tenets of investor education, full transparency and open communication. 2020 ROUNDHILL FINANCIAL INC. All Rights Reserved. They’re monetizing memes to the tune of tens of millions of dollars per year. People have strong feelings about Dave Portnoy, the opinionated founder of Barstool Sports who is famous for his man-on-the-street pizza reviews. Summary: As of 2019, Barstool revenues totalled ~$100 million, consisting primarily of e-commerce and merchandising, digital advertising, and podcast revenues. 9.4m Followers, 173 Following, 10.8k Posts - See Instagram photos and videos from Barstool Sports (@barstoolsports) This becomes a virtuous cycle of improved talent = improved brand = ability to acquire even better talent. At first glance, the deal may have seemed like little more than a tactical bolt-on acquisition. He also posted the moment he stepped into the brand new Barstool Sportsbook, which has been years in the making. We create thoughtful investment products designed to help investors express their vision of the future. Barstool Sports is difficult to explain, in the sense that the company itself is somewhat of an enigma. Barstool has become one of the most popular and outspoken media companies in the sports world, and Portnoy is the brainchild behind it all. 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 “modestly” profitable. 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. But as we alluded to earlier, Penn didn’t invest for the present -- they invested for the future. The excitement surrounding it has brought out internet celebrity David Portnoy. Portnoy says Penn National will match every dollar deposited and wagered with barstool sportsbook this weekend. Here’s everything you need to know to be in the loop. 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 … In retrospect, the best mergers and acquisitions always look obvious. The long anticipated online sports betting is now legal in Michigan and just a click away. Google’s purchase of YouTube. As you can see, only one company, Penn National, is getting credit for adapting and evolving towards a digital-first future. Barstool’s social media following is also vast and significant. By viewing our video content, you are accepting the terms of our. 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. 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. 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. This material may not be published, broadcast, rewritten, or redistributed. 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). Note: Morgan Stanley expects 25% EBITDA margins for online betting at maturity, higher for iGaming. “It’s a great feeling to help others” Said Portnoy. Dave Portnoy, founder of media company Barstool Sports, has raised $3.4 million for 10 small businesses as of Thursday. But Barstool Sports isn’t like any other sports-media company. 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. On January 29th of this year, Penn National Gaming announced that it was investing $163 million in Barstool Sports for a 36% equity stake. The company has tens of millions of followers throughout various platforms, including Instagram, Twitter, TikTok, and Snapchat. The Swampscott, MA native is no stranger to restaurant industry. Barstool Sports founder Dave Portnoy personally called to tell him the Barstool Fund chose them to receive money to help them through the pandemic. This means that sportsbooks are focused on customer acquisition and scale, favoring top line growth and user acquisition over short-term profitability. To understand the brilliance of the Barstool acquisition is to first understand the magnitude and potential of the U.S. online gaming market. According to Goldman Sachs research, Barstool also provides a combined Penn / Barstool with a more significant bettor database than established peers. BARSTOOL SPORTS SAVIOR: @mackstenders201 went from facing bankruptcy to a sales record overnight all thanks to @BarstoolFund. (CBS DETROIT)– Starting Friday gamblers in Michigan will no longer need to visit casinos to place a bet. 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. Disney’s takeover of Marvel. While millions of viewers watched ESPN, they aren’t necessarily “ESPN fans.” Barstool was -- and is -- different. Just this month, Barstool signed a multi-year deal with ex-NFL star (and TV network host) Deion Sanders. Since the first launch in Virginia, the 30 Day Fund launched in Pennsylvania, Georgia, Mississippi, Arkansas, and New Jersey. Portnoy founded a print publication in the Boston area in 2003 called Barstool Sports that grew into a sports and pop-culture website with 8 million visits a month. To understand why, it's important to try and understand Barstool, and how it fits in the broader Penn story. In its early years, distribution focused exclusively on the Boston metropolitan area. ‎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. In 2007, the year the original iPhone was introduced, Barstool shifted to online distribution. The regional gaming operator already managed 41 properties across 19 states, totaling $5.3 billion in 2019 revenues. As the company continued to operate outside of mainstream media, it naturally developed a cult following. Dave Portnoy, owner of Barstool Sports, initiated this national fundraising effort on Dec. 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. His … 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 Barstool Fund, created by Company President Dave Portnoy, has helped raise more than $20 million for … 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. True Crime: Will Scott Peterson's Murder Conviction Be Tossed? Who is Kate from Barstool? As illustrated below, 65% of Barstool’s audience -- which as of January included 66 million unique visitors a month -- is aged 21 to 44. And in terms of the market, the Barstool acquisition is certainly one of the all-time greats. For every story that involves the Patriots, there is one that involves cankles. Penn’s investment in Barstool is an investment in the future. This is all to highlight the significant value that Barstool will likely bring into the Penn ecosystem. @barstoolsports has raised $6M to help small owners, and this owner got the news on Christmas. On the company’s 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. Toddler Fatally Shoots 5-Year-Old Cousin While Playing With Gun, Missed Gov. Various assumptions abound in each forecast, most importantly those related to the state-by-state regulatory process. Although Portnoy is already immensely popular among sports fans, this fund has reached people of all interests and is exceeding expectations. As such, we believe that Barstool’s reach can quickly translate into an effective top of the funnel for Penn’s 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. 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. Does This Prove That Hank Aaron Was Juicing? It generated $1.4 billion in EBITDA for 2019. Dave Portnoy founded Barstool Sports in 2004 “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. “When I walked into the sportsbook for the first time, I had to pinch myself because it just didn’t seem real. 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. Roundhill Investments is a registered investment adviser and ETF sponsor focused on thematic and sector-specific investing. Barstool Sports is one of the most popular online brands today in the world of sports, comedy, pop culture, sports betting, and more. Perhaps most importantly, throughout its history Barstool has continued to offer an escape from the increasingly buttoned-up sports content on linear TV. The happy announcement went out yesterday and fans of the sports website will be thrilled to hear the good news about their favourite commentator. Barstool Sports is a digital media company that produces content focused on sports and pop-culture. Kate is a sports commentator on the Barstool Sports website. A different (and improved) story Below is a comparison of EV/EBITDA multiples for Penn versus its peer group. Check out our coverage on the Barstool Sportsbook Launch. The thought here is simple -- eyeballs build brand awareness and eventually lead to new customers. All 3 Detroit casinos will participate in sports betting, an industry that’s expected to bring millions in tax revenue for Michigan. This came at a time when New York City was forced to close indoor dining. “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”. Moving forward, Penn and the Barstool betting app are well-positioned to capture market share in a multi-billion dollar market. How big is the U.S. sports betting opportunity? In its early years, distribution focused exclusively on the Boston metropolitan area. For information on donating to Barstool Sports, or if you’re a business in need of help, go to. Once a little-known but profitable regional casino operator, Penn was transformed into a digital-first media and online betting powerhouse. © 2021 CBS Broadcasting Inc. All Rights Reserved. But while revenues have grown significantly, the company’s personality remains the same as it ever was. The company is called Barstool Sports, but the business has effectively become a diversified media brand, one that has been able to execute admirably during time without professional sports. Mom': Male Orangutan Steps Up To Care For 2-Year-Old Daughter After Death Of Matriarch. Barstool Sports founder Dave Portnoy, who has been openly critical of the suffocating restrictions, has started the Barstool Fund to raise money for struggling small enterprises. If there’s 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. However, typically it takes years for such transactions to fully realize relevant synergies, value creation and ultimately, shareholder value. It takes years, if not decades, to build that type of brand loyalty. These deals all make perfect sense. "Sure, … El Pres, Big … That’s where Barstool fits in. And so what brought them in at very top is also what’s going to get them to bet.” David Portnoy of Barstool Sports hosts The Pool After Dark at Harrah's Resort on Saturday May 11, 2019 in Atlantic City, New Jersey. Barstool consumers are fans. That’s typically how the best deals play out…but Dave Portnoy and Barstool Sports aren’t your typical acquisition target. The company was originally founded by Dave Portnoy in 2003 as a print-only publication focused on fantasy sports and betting. 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. The company was originally founded by Dave Portnoy in 2003 as a print-only publication focused on fantasy sports and betting. By subscribing to our newsroom you will get the latest esports news from us. Dave Portnoy is founder of the sports and pop culture blog Barstool Sports. And alongside the shift, the company would grow its fanbase exponentially, primarily targeting young (and male) sports fans. 38% comes from the highly-coveted 21-34 age range. 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. While this is true, Penn’s Barstool investment is setting them up for the next couple decades, not the next couple years. Stimulus Check Update: When Could The Third Payment Arrive? Opening weekend numbers, downloads, and more! 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. Historically, the gamblng industry has focused on client acquisition via a combination of third-party lead generation and traditional advertising (where permitted). As technology advanced, so did Barstool. It is endorsing harassment and cruelty and bullying. 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). All you’ll need is a computer or cell phone. The New York resident made what he called a video "rant" about state and … 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 Barstool’s 2019 revenues. Barstool Sports fundraiser helps support small Chicopee business during pandemic. 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. While we are in the early innings of the U.S. rollout, expectations are significant. While the Barstool-branded mobile betting platform hasn’t even launched yet (it’s due later this month), Barstool’s current brand is on par with the current market leaders in U.S. betting. They love what the company stands for -- unabashed sports entertainment that feels honest and “real”. Barstool sports is a blog based in Boston, MA and is run by Dave Portnoy aka El Pres. Barstool’s Kate Mannion is pregnant! By the common man, for the common man. 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. 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. The company was recently valued at $450 million, but what is its controversial founder’s net worth? Despite the potential TAM, the U.S. market is currently modest in size (especially relative to mature markets like Australia and the UK). 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 … Market share in a what is barstool sports dollar market the deal may have seemed like little more a. 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