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It's actually a really complex answer. Yes, he did great work advertising for them, but there's a big difference between "Some guy over there advertising your p
by SilverBirch 3y ago
It's actually a really complex answer. Yes, he did great work advertising for them, but there's a big difference between "Some guy over there advertising your product" and "Your employee advertising the product". The problem Penn had was that when they talk to regulators they can't say "We don't know that guy", so they constantly got in trouble with regulators and faced a lot more scrutiny because of the reputation of Dave. So it wasn't a match made in heaven, but also the ESPN deal is just such a big fish that no matter what given the opportunity Penn probably would've moved heaven and earth for ESPN.
Having said that, Sports betting is by far the biggest advertiser in the sports-media segment, so Penn have handed the company back to Dave and said "Oh, btw, you're not allowed your biggest source of revenue". It is undoubtedly going to be tough for Portnoy to make the economics work on a sports-media business without gambling advertising as a key revenue stream. Having said that, that's not necessarily what he cares about. He's rich, he's got his company back, he can say what he likes. If Barstool collapsed tomorrow I don't think he'd be happy, but he'd be producing new content within minutes.