Known for his work in sports journalism and the internet, David Portnoy has amassed an impressive net worth of $80 million. Barstool Sports, the digital sports conglomerate he founded, is where Portnoy made his money. Barstool was sold in two separate transactions. The Chernin Group bought a majority share in him in 2016. A 36 percent share in Penn Gaming was purchased from the founders for $163 million in January 2020. This article will go into greater detail about Portnoy’s net worth as a result of these transactions.
David Portnoy was born in Swampscott, Massachusetts, on March 22, 1977. To earn a degree in education, he attended the University of Michigan after graduating from Swampscott High School.
Yankee Group was the IT market research firm he worked for in Boston after graduating from college.
To serve the greater Boston area, Dave started Barstool Sports in 2003 as a print journal. Fantasy sports forecasts, gaming marketing, and sports coverage were all available in the newspaper. In 2007, the website became live. Barstool Sports would become an improbable sports media behemoth in the next decade. It was not uncommon for Portnoy in the early days of the site to work 10+ hour days, including Saturdays and Sundays.
Stool Presidente is Dave’s online moniker on the site. Snarky sports coverage and gorgeous women populate the site. ESPN and Girls Gone Wild may be the best comparisons for the brand. Because BarstoolSports is now one of the most visited sports websites, it appears that the mix is working.
The “One Bite with Davey Pageviews” pizza review series was created by Portnoy in 2017. Reviewing each and every pizza joint in Manhattan is the show’s unofficial mission.
In January 2016, Peter Chernin’s The Chernin Group was reported to have purchased a majority share in Barstool for $10 – $15 million. After investing $20-25 million by 2018, Chernin had increased his share to 60%. Portnoy maintained complete control over the company’s content, which eventually included podcasts, casino content, souvenirs, booze brands, television series, and more.
Penn National Acquisition
Penn National Gaming purchased a 36% share in Barstool Sports for $450 million in January 2020. In the first round of transactions, $163 million will be exchanged. Increasing its investment to 50% would require Penn National to pay an additional $62 million over the course of three years. To match Penn National’s 36 percent share of ownership, The Chernin Group’s initial 60% investment in the company had been cut to 36 percent after the initial acquisition concluded. Some of the company’s top executives, including CEO Erika Nardini, still own the remaining 28%.
All-time high: Shares hit $38 in the days following the announcement. It is unfortunate that Penn’s stock dropped after the international Coronavirus outbreak. The share price has fallen to $7 by March 17. There was an 81% decrease from the peak.
As of May 10, the price of a share has climbed back to roughly $20. Shares had more than doubled to over $50 per share by August. The price of a share had grown to more than $100 by January 2021.
Some $23 million was given as convertible preferred shares and another $3 million was set aside for “forward arrangements” as part of Penn Gaming’s Q1 2020 SEC filing. There are approximately 883,000 shares of Penn Gaming that can be converted from convertible stock.
Penn Gaming has a market value of $10 billion as of this writing. This means that a 0.5 percent share in the company would be worth $50 million. This means that Dave has around $16 million in equity in the company at today’s prices. We estimate Dave Portnoy’s net worth at $100 million, taking into account his remaining Barstool equity and other assets.
The Barstool Fund
The Barstool Fund was established in 2020 to assist small businesses hit by the COVID-19 pandemic. Dave gave $500,000 to the Barstool Fund during this time. Nearly 350 small firms received a total of $39 million from the fund during the course of its existence.
Renee Satherthwaite, the former wife of Portnoy, died in 2017, after an eight-year marriage.