Early Life
Swampscott, Massachusetts-born David Portnoy, entered the world on March 22, 1977. After graduating from Swampscott High School, he pursued a degree in education at the University of Michigan, graduating in 1999.
Post-graduation, Boston became his new home, where he contributed to an IT market research firm called Yankee Group.
The inception of Barstool Sports occurred in 2003 as a print media outlet catering to the Boston metro. Initially focusing on fantasy sports predictions, gaming advertisements, and sports news, the website was unveiled in 2007. Over the following decade, Barstool evolved into a major player in sports media. During the site’s early phase, Portnoy was known for committing over 10-hour days, including weekends.
Portnoy’s nickname on the site is “El Presidente,” signifying his role. The platform features a blend of witty sports coverage and visually appealing women, aligning it between “ESPN and Girls Gone Wild.” This unique formula has propelled BarstoolSports to become a favored sports site.
In 2017, Portnoy initiated a pizza review series titled “One Bite with Davey Pageviews,” with the unofficial objective of reviewing all Manhattan pizza establishments.
Chernin Acquisition In January 2016, Portnoy sold a portion of Barstool to Peter Chernin’s The Chernin Group for $10-$15 million. By 2018, Chernin’s investment grew to $20-$25 million, resulting in a 60% ownership stake. Portnoy retained full control over the content, which expanded to include podcasts, betting content, merchandise, alcoholic brands, TV productions, and more.
Penn National Acquisition #1
In January 2020, Penn National Gaming secured a 36% share in Barstool Sports valued at $450 million. The initial financial transaction totaled $163 million. Alongside this deal, The Chernin Group’s stake was decreased to 36%, matching Penn National’s ownership. The remainder of 28% was held by Portnoy and key executives like CEO Erika Nardini.
Penn Gaming Stock Following the partnership announcement, Penn Gaming’s stock soared to a then-record high of $38. However, the global pandemic induced a sharp decline in share prices, dropping to $7 a share by March 17, marking an 81% decrease from its peak.
By May 10, the stock rebounded to approximately $20 per share. Subsequently, it doubled to around $50 per share by August, climbing over $100 per share by January 2021, reaching $130 in March of the same year.
Portnoy’s Stock Holdings As per a Penn Gaming Q1 2020 10-Q SEC filing, $23 million from the $163 million in cash was allocated as convertible preferred stock, and $3 million was reserved for “forward arrangements.” The convertible stock could potentially translate to about 0.50% of Penn Gaming’s market cap OR 883,000 Penn Gaming shares.
Considering a $10 billion market cap, a 0.50% share equated to a $50 million value. Portnoy purportedly possessed a third of this stake, approximately $16 million based on the $10 billion valuation. Combined with his projected $90 million stake in Barstool and assets from prior transactions, estimates place Dave Portnoy’s net worth at $100 million.
Penn National Acquisition #2 Subsequently, Penn acquired an additional 14% of Barstool, ultimately achieving 50% ownership. The SEC filing on August 17, 2022, disclosed Penn Gaming’s decision to buy the remaining half of Barstool through a $387 million payment to attain full ownership.
Penn Sale Back To Portnoy On August 8, 2023, concomitant with Penn’s exclusive betting alliance with ESPN, Portnoy declared his re-assumption of 100% Barstool ownership. Additionally, he assented to a non-compete clause and other favors, categorizing it as a mutually advantageous agreement. Furthermore, in the event of a future Barstool sale, Penn is entitled to half the proceeds. Per Penn’s CEO statement:
“The divestiture allows Barstool to return to its roots of providing unique and authentic content to its loyal audience without the restrictions associated with a publicly traded, licensed gaming company.
A day later, it was disclosed that Portnoy repurchased Barstool for a token fee of $1.00. The rationale behind such an action by Penn remains ambiguous.
Firstly, it is important to note that the brand would likely be considered valueless without Dave’s involvement, making it improbable for Dave to agree to work under a new owner. Secondly, Penn still holds the right to a significant portion of the proceeds from any potential future sale of Barstool. Additionally, it is probable that Penn Gaming is currently writing off the brand’s value, with plans to record an $850 million loss on Barstool. This loss likely comprises the $550 million paid in various transactions and $300 million in accumulated costs and investments over the years. Notably, the agreement prevents Portnoy from joining a rival betting firm or making negative comments about ESPN or Penn Gaming.
“PENN engaged in a transaction where David Portnoy acquired 100% of the outstanding shares of Barstool for a nominal cash sum ($1.00) along with specific non-compete and other restrictive clauses.
In response to the hardships faced by small businesses during the peak of the COVID-19 pandemic in 2020, Dave contributed $500,000 to the Barstool Fund. The initiative managed to raise a total of $39 million, which was subsequently distributed to nearly 350 struggling small businesses.
Personal Life Renee Satherthwaite was Dave Portnoy’s spouse from 2009 to 2017. In 2021, he commenced a relationship with Silvana Mojica.
(Photo by Michael Reaves/Getty Images)
During December 2019, a private video of Portnoy became public. Business Insider accused him of inappropriate behavior on two occasions, allegations that Dave vehemently refuted, leading him to file a lawsuit against the publication. In November 2022, a federal judge dismissed the lawsuit, prompting Portnoy to lodge an appeal that he later withdrew in February 2023.
Reportedly, in 2004, Dave Portnoy sought bankruptcy protection due to significant gambling losses, resulting in debts of $59,000 to credit card companies and $18,000 to his father.
Real Estate Over the years, Dave Portnoy has been associated with numerous real estate acquisitions, including a $2.2 million residence in Nantucket, a $14 million waterfront property in Miami, a Hamptons house purchased for $9.75 million, and a $1.4 million estate in Saratoga Springs.
In September 2023, Dave acquired a Nantucket waterfront mansion situated on 1.2 acres for $42 million. This purchase set a new record for the area, surpassing the previous high by approximately $5 million.
