Dave Portnoy Early Life
A native of Swampscott, Massachusetts, Portnoy was conceived on March 22, 1977. Throughout his childhood, he played baseball and football, and he was always interested in sports. No matter how much he protested it, Portnoy went to the University of Michigan, even though he wouldn’t be participating in any sports while there. In 1995, he graduated from the University of Michigan with a degree in education.
A technology research firm in Boston hired him after graduating. His first job out of college was at Yankee Group. Before launching Barstool Sports, he worked for another company for four years.
Dave Portnoy Career
New York City-based Chernin Group had purchased a majority share in Barstool and would relocate the company’s headquarters there in 2016, Portnoy announced 2016.
‘One Bite with Davey Pageviews’ was introduced the next year as a series of pizza reviews. It is the goal of the series to review all of Manhattan’s pizzerias.
Penn National Gaming paid $163 million in 2020 for a 36% share in Barstool Sports. The Chernin Group retained a 36 percent ownership in the company following the transaction.
During the first half of Super Bowl LIII, he was held in a cell at Mercedes-Benz Stadium. Due to Portnoy’s creation of phony press credentials the day before the game, he was barred from attending.
As a print journal, Barstool Sports was launched by Dave in 2003. Fantasy sports forecasts, gaming ads, and sports news were all included in the paper’s offerings. In 2007, the website became live. Irreverent sports media powerhouse Barstool would emerge over the next decade. In the early days of the site, Portnoy was well-known for working weekends and holidays in addition to his regular 10-plus-hour days.
— Dave Portnoy (@stoolpresidente) June 21, 2022
Dave is known as “El Presidente” or “Stool Presidente” on the site. The content is a mix of sarcastic sports commentary and photos of hot women. “ESPN and Girls Gone Wild” have been used to characterize the brand. According to the popularity of BarstoolSports, this combo appears to be working nicely.
For the first time in 2017, Portnoy introduced “One Bite with Dave” pageviews, an online pizza review series. The show’s unstated objective is to evaluate every pizzeria in Manhattan.
Acquisition of Chernin
In January 2016, Peter Chernin’s The Chernin Group was reported to have purchased a majority share in Barstool for $10 – $15 million. As of 2018, Chernin had committed between $20 and $25 million to expand his share in the company from 51% to 60%. For as long as Portnoy was CEO, he was in complete control of the company’s material ranging from podcasts to gaming content to merchandising to booze brands to TV series.
Acquisition of Penn National
Penn National Gaming bought a 36% share in Barstool Sports for $450 million in January 2020. A total of $163 million in cash will be exchanged in the beginning. Penn National has the opportunity to pay an extra $62 million over the next three years to increase its ownership to 50%. 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. Portnoy and a few important executives, such as CEO Erika Nardini, own the remaining 28%.
Immediately following this news, the stock price shot up to a record high of $38. In the wake of the worldwide outbreak of the Coronavirus, Penn’s stock took a nosedive. S& P 500 shares were trading at $7 on March 17th, down from the earlier high of $13. That represents an 81% decrease from the previous high.
As of May 10, the price of a share has climbed back to roughly $20. Toward the end of the month, it had risen to around $50 per share. As of January 2021, a single share of the company traded at over $100 a share.
Holdings of Stocks
Approximately $23 million of the $163 million in cash was given as convertible preferred stock, and $3 million was set aside as “forward arrangements,” according to a Penn Gaming 10-Q SEC filing for Q1 2020. The convertible stock can be converted into 883,000 Penn Gaming shares, representing around 0.5% of the company’s market capitalization.
Penn Gaming has a market value of $10 billion as of this writing. As so, a 0.5 percent interest would entail a capital gain of $50,000,000. As of this writing, Dave is said to own a third of that stake, which works out to $16 million. We estimate Dave Portnoy’s net worth to be $100 million, based on his remaining $90 million ownership in Barstool, as well as recent transactions.
The Barstool Fund
When the COVID-19 epidemic was at its peak in 2020, Dave gave $500,000 to the Barstool Fund to support small companies whose operations were affected by the catastrophe. Nearly 350 small firms received a combined total of $39 million from the fund during its existence.