'Barstool, Draftkings Near Sports Betting Deal After Penn Lock-Up' - Sportico
Portfolio Pulse from Benzinga Newsdesk
Barstool Sports is in advanced talks with DraftKings for a sports betting marketing partnership, post-separation from Penn Entertainment. The deal, not yet signed, could be worth low eight figures annually for Barstool. Penn sold Barstool back to founder Dave Portnoy for $1 after an $850 million write-off. Barstool is restricted from betting deals until post-Super Bowl due to a lock-up clause. DraftKings, which spent $1.19 billion on marketing in 2022, ended its ESPN deal as ESPN launched ESPN Bet with Penn.
January 24, 2024 | 4:54 pm
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POSITIVE IMPACT
DraftKings is in talks with Barstool Sports for a marketing partnership that could enhance its customer acquisition post-ESPN deal termination. The company's marketing spend is significant, and this deal could influence its marketing efficiency and customer reach.
The potential partnership with Barstool could provide DraftKings with a strategic marketing avenue, leveraging Barstool's audience. Given DraftKings' past marketing spend and the termination of the ESPN deal, this new partnership could be a positive move for customer acquisition and brand visibility in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Penn Entertainment sold Barstool back to its founder and is now focused on its partnership with ESPN to launch ESPN Bet. The news of Barstool's potential deal with DraftKings follows Penn's $850 million write-off from the Barstool acquisition.
While the news highlights Penn's past relationship with Barstool, the current impact on Penn is neutral as it has already shifted its strategy towards ESPN Bet. The write-off has been accounted for, and the potential Barstool-DraftKings deal does not directly affect Penn's current operations or strategy.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60