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David Portnoy Net Worth
David Portnoy net worth is estimated to be $100 million as a sports media figure and an internet entrepreneur. Portnoy acquired his riches by founding Barstool Sports, the industry leader in digital sports.
David sold a portion of Barstool through numerous transactions, with the final one occurring in August 2022. He first sold the majority of his assets in The Chernin Group in 2016. In January 2020, Penn Gaming paid the founders $163 million for a 36% stake. The deal included a future option to purchase the entire company.
In August 2022, Penn Gaming used that option, paying $390 million to acquire Barstool entirely. For $550 million, Penn Gaming purchased the whole Barstool company.
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Early Life
On March 22, 1977, in Swampscott, Massachusetts, David Portnoy was born. He continued his study after leaving Swampscott High School and earned his education degree from the University of Michigan in 1999.
He relocated to Boston upon graduation and began working for Yankee Group, a business that conducts IT market research.
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Career
Barstool
In 2003, Dave started Barstool Sports as a print magazine for the Boston metropolitan area. The newspaper featured sports journalism, gaming advertisements, and fantasy sports predictions. The site became up in 2007. In the ensuing ten years, Barstool would develop into a surprising powerhouse in the sports media. In the early days of the site, Portnoy was well-known for working regular 10-plus-hour days and continuing to work on Saturdays and Sundays.
Dave is known online as “El Presidente” or “Stool Presidente.” The website features both hot women and caustic sports news. The company’s image has been compared to “ESPN and Girls Gone Wild.” Given that BarstoolSports is one of the most well-liked sports websites on the internet right now, this combo must be effective.
“One Bite with Davey Pageviews” is a pizza review series that Portnoy started in 2017. The show’s unstated objective is to assess every pizzeria in Manhattan.
Chernin Acquisition
A controlling share in Barstool was reportedly purchased by Peter Chernin’s The Chernin Group for $10 to $15 million in January 2016. Chernin increased his interest to 60% by investing $20–$25 million by the end of 2018. Portnoy maintained complete ownership of the company’s material, which eventually encompassed TV series, souvenirs, gambling-related content, podcasts, and more.
The Chernin Group’s 60% interest was immediately cut to 36%, matching Penn National’s holding, once this original acquisition concluded. Portnoy and a few other influential business leaders, including CEO Erika Nardini, continued to possess the remaining 28%.
Gaming stock at Penn
Shares of Penn Gaming soared to an all-time high of $38 in the days following the announcement, which was. Penn’s shares fell during the global Coronavirus outbreak. By March 17, the stock had fallen 81% from its high of $7 per share.
Penn National Acquisition
At a $450 million valuation, Penn National Gaming purchased a 36% share in Barstool Sports in January 2020. The initial cash transactions totaled $163 million. Additionally, Penn National bought the right to increase its ownership to 50% by spending an additional $62 million within three years.
It had climbed back up to about $20 per share by May 10. It had more than doubled to about $50 per share by August. It has grown to above $100 per share by January 2021. The share price reached $130 in March 2021.
Second Acquisition: Penn National
Later, Penn acquired a further 14% of Barstool, giving it a 50% share. According to an SEC filing submitted on August 17, 2022, Penn Gaming then used its option to purchase the final share in Barstool.
The total cost for Penn to purchase the other 50% of Barstool over the two steps outlined in this second deal will be $387 million.
Portnoy Stock Holding
Of the $163 million in cash, about $23 million was granted as convertible preferred stock, and $3 million was set aside for “forward arrangements,” per a Penn Gaming Q1 2020 10-Q SEC filing. The convertible stock might ultimately be converted into 883,000 Penn Gaming shares or around 0.50% of Penn Gaming’s market capitalization.
When Penn Gaming’s market capitalization was $10 billion, a 0.50% stake in the company was worth $50 million. According to reports, Dave owned a third of the investment, or around $16 million using the example of a $10 billion valuation. Our calculations place Dave Portnoy’s total net worth at $100 million, which includes his approximately $90 million in remaining Barstool ownership as well as proceeds from earlier business ventures.
Barstool Fund
In 2020, at the height of the crisis, Dave donated $500,000 to the Barstool Fund, which was founded to assist small businesses impacted by the COVID-19 outbreak. In the end, the fund had $39 million, which it distributed to nearly 350 small businesses.
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Arrests
In connection with NFL-related incidents, Portnoy has been detained twice. The first time was on May 12, 2015, when he was taken into custody by New York City police after participating in a demonstration against Deflategate in which he and three Barstool employees handcuffed one another on the floor of NFL headquarters.
The second time occurred in 2019 when he was held for a portion of Super Bowl LIII at Mercedes-Benz Stadium. In the latter case, he was disqualified from the game because the day before at a news conference, he had committed mistakes.
Allegations of sexual misconduct
In a Business Insider exposé published in November 2021, Portnoy was accused of having forceful and violent sexual encounters with three young women and of filming them without their permission. Portnoy admitted to breaking one of these women’s ribs during intercourse.
Although he acknowledged causing the harm, he insisted that the sex was consensual. Portnoy referred to the report as a “hit piece” and asserted that Business Insider spent roughly eight months looking for evidence of his malfeasance.
Additional allegations of sexual assault and harassment made by young women were revealed in a second Business Insider article at the beginning of February 2022. Portnoy declared a lawsuit against the newspaper following the release of these further charges. In November 2022, a federal judge dismissed the claim.
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Controversy
Following significant gaming losses, Portnoy filed for bankruptcy protection in 2004. He owed $18,000 to his father and $59,000 to credit card firms.
Portnoy estimated his net worth to be about $100 million in 2019. In December 2019, a Portnoy sex tape was exposed. The U.S. Securities and Exchange Commission filed a tax lien for $11,795 against Portnoy in January 2020.
Portnoy gave $500,000 to The Barstool Fund in 2020, a COVID-19 pandemic relief effort for small businesses. The campaign raised more than $39 million for 348 businesses through May 2021.
