Dave Portnoy Net Worth (Money & Salary)

What is Dave Portnoy’s net worth and salary?

As an American sports media personality and internet entrepreneur, Dave Portnoy boasts a net worth of $150 million. His wealth has primarily come from his role as the founder of Barstool Sports, a digital sports powerhouse. Over several transactions, he sold parts of Barstool to various buyers, culminating in a deal with Penn Gaming in August 2022.

In 2016, he initially sold a majority stake to The Chernin Group. Later, in January 2020, Penn Gaming purchased a 36% stake from the founders for $163 million, which included an option to acquire the complete company at a later point. By August 2022, Penn Gaming activated that option, acquiring Barstool for $390 million, making the total payment to $550 million for complete ownership. Further analysis of these deals and their implications for Portnoy’s fortune will follow in this article.

In a surprising turn of events, Dave Portnoy re-acquired Barstool from Penn Gaming on August 8, 2023. This marked his return as the sole owner of the brand for the first time in nearly a decade. Remarkably, Dave is reported to have purchased Barstool for a nominal fee of just $1.00, which is indeed correct. More details on this transaction will be provided later in this article.

Early Life

Born on March 22, 1977, in Swampscott, Massachusetts, David Portnoy graduated from Swampscott High School before pursuing a degree in education at the University of Michigan, where he graduated in 1999.

Following his graduation, he relocated to Boston and began working at an IT market research company known as Yankee Group.

Barstool

In 2003, Dave established Barstool Sports, initially as a print publication catering to the Boston metro area, providing fantasy sports predictions, gaming advertisements, and sports reporting. The website made its debut in 2007. Within a decade, Barstool transformed into an unexpected powerhouse in sports media. In its formative years, Portnoy was often observed working over 10 hours a day and even on weekends.

On the platform, Dave is referred to as “El Presidente” or “Stool Presidente.” The site combines sharp-witted sports commentary with visuals of attractive women, resulting in a brand that has been likened to a mix of “ESPN and Girls Gone Wild.” This unique blend has evidently proven successful, as Barstool Sports remains one of the leading sports sites on the internet today.

In 2017, Portnoy initiated a pizza review series entitled “One Bite with Davey Pageviews,” with the unofficial objective of reviewing every pizza establishment in Manhattan.

Chernin Acquisition

In January 2016, a stake in Barstool was sold by Dave to The Chernin Group, led by Peter Chernin, for $10 – $15 million. By 2018, Chernin had injected an additional $20 – 25 million, increasing his ownership to 60%. Despite this, Portnoy retained full control over the company’s content, which eventually encompassed podcasts, gambling-related materials, merchandise, alcohol brands, and television programs, among others.

Penn National Acquisition #1

In January 2020, a 36% stake in Barstool Sports was acquired by Penn National Gaming for a total valuation of $450 million. Initially, the cash exchanged amounted to $163 million. Additionally, Penn National secured an option to invest another $62 million within three years to elevate its stake to 50%.

Immediately following the closure of this initial transaction, The Chernin Group’s stake was diminished from 60% to 36%, aligning it with that of Penn National. Portnoy and a small group of key executives, including CEO Erika Nardini, retained the remaining 28% ownership.

Penn Gaming Stock

Shares of Penn Gaming soared to a then-record high of $38 shortly after the announcement. However, in the ensuing turmoil from the global Coronavirus pandemic, Penn’s stock took a nosedive. By March 17, the shares had fallen to $7 each, witnessing an 81% decline from its highest point.

By May 10, recovery brought the stock back to about $20 per share. In August, it more than doubled again to roughly $50 per share. By January 2021, it surpassed $100 per share and reached $130 in March of that same year.

Portnoy’s Stock Holdings

Per a Q1 2020 10-Q SEC filing from Penn Gaming, out of the $163 million in cash, around $23 million was allocated as convertible preferred stock, and $3 million was designated for “forward arrangements.” The convertible stock could eventually be converted into approximately 0.50% of Penn Gaming’s market cap or about 883,000 shares.

When Penn Gaming’s market cap stood at $10 billion, a 0.50% stake corresponded to $50 million. Reportedly, Dave held 1/3 of that stake, which translated to approximately $16 million at that valuation. When this is combined with his estimated remaining stake of around $90 million in Barstool, along with proceeds from past dealings, Portnoy’s estimated net worth is around $100 million.

Penn National Acquisition #2

Subsequently, Penn obtained an additional 14% of Barstool, culminating in a total ownership of 50%. Then, on Wednesday, August 17, 2022, an SEC document disclosed that Penn Gaming had exercised its option to purchase the remaining interest in Barstool. This two-step agreement entails that Penn will ultimately disburse $387 million to acquire the additional 50% of Barstool that it did not own previously.

Penn Sale Back To Portnoy

On August 8, 2023, coinciding with Penn’s announcement of a long-term exclusive betting partnership with ESPN, Dave disclosed that he had reclaimed 100% ownership of Barstool. He consented to a non-compete agreement and described other conditions as a “win-win.” Should Portnoy decide to sell Barstool in the future, Penn retains the right to half of the proceeds. Penn’s CEO stated:

“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.”

Following the announcement of the deal the next day,
“`It became known that Dave successfully re-acquired Barstool for a mere $1.00. What was Penn’s motivation behind such an agreement? To begin with, the brand lacks value without Dave at its helm, and it’s uncertain that he would have accepted working under a new owner. Additionally, as previously noted, Penn retained rights to half the revenue from Barstool should it be sold again in the future. Furthermore, it appears that Penn Gaming is planning to write off the brand’s value. In the same financial disclosure that disclosed the Portnoy sale, Penn Gaming announced intentions to incur an $850 million loss on Barstool—a figure likely derived from the $550 million spent in past transactions, alongside $300 million attributed to various costs and investments throughout the years. Lastly, the sale also imposes restrictions on Portnoy, barring him from employment with competing betting firms or from making disparaging remarks about either ESPN or Penn Gaming.

“PENN sold 100% of the outstanding shares of Barstool to David Portnoy in exchange for a nominal cash consideration ($1.00 dollar) and certain non-compete and other restrictive covenants.“

The Barstool Fund

During 2020, amidst the COVID-19 pandemic, Dave contributed $500,000 to the Barstool Fund, established to support small businesses affected by the crisis. Over time, this fund garnered $39 million, which was allocated to nearly 350 small businesses.

Personal Life

From 2009 to 2017, Dave Portnoy was wed to Renee Satherthwaite. He started dating Silvana Mojica in 2021.

In December 2019, Portnoy found himself in the headlines due to a leaked sex tape. Business Insider accused him of sexual misconduct on two separate occasions. In response, Dave not only refuted the claims but also initiated a lawsuit against the publication. A federal judge dismissed the lawsuit in November 2022, and while Portnoy filed an appeal against the dismissal, he ultimately withdrew it in February 2023.

In 2004, after facing substantial gambling losses, Dave reportedly sought bankruptcy protection, with debts of $59,000 owed to credit card companies and $18,000 to his father.

Real Estate

Over the years, Dave Portnoy has been associated with various real estate ventures, including purchasing a $2.2 million home in Nantucket, a $14 million waterfront property in Miami, a house in the Hamptons for $9.75 million, and a property in Saratoga Springs for $1.4 million.

In September 2023, Dave acquired a waterfront mansion on 1.2 acres in Nantucket for $42 million, which set a new record for the area by approximately $5 million.