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> So Portnoy gets a bunch of cash (from before) Does he? Didn't VC invest $178M? https://www.crunchbase.com/organization/barstool-sports https://www.crunchbase
by onlyrealcuzzo 3y ago
> So Portnoy gets a bunch of cash (from before)
Does he? Didn't VC invest $178M? https://www.crunchbase.com/organization/barstool-sports https://www.crunchbase.com/organization/barstool-sports
And didn't Penn pay $388M?
- stuff4ben 3y ago388-178 is still a bunch of cash...
- cududa 3y agoMost investments have a "ratchet" provision, where they get at least 2-3x their investment in a sale. Most of it probably went to investors.
- onlyrealcuzzo 3y ago(388-178*y)*x Where y is the ratchet rate, and x is the percent Portnoy owned. He could have easily owned 20% of the company or less. Assuming no ratchet, that could still be well over $30M after taxes - but it's an order of magnitude away from $550M. And assuming a ratchet rate close to 2 - that's almost nothing - even if he owned 80% of the company.