Vishesh Raisinghani
4 min read
In This Article:
Shortly after selling his sports media company Barstool Sports to Penn Entertainment for $551 million, founder Dave Portnoy turned around and repurchased 100% of the company for just $1 in 2023, according to Business Insider.
“It’s one of the [greatest] trades of all time,” he told Shannon Sharpe in a recent interview on the Club Shay Shay podcast. Sharpe then joked that the deal was “better than the Louisiana Purchase.”
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Companies don’t often sell for less than the price of a candy bar, but Portnoy says a combination of unique factors gave him the opportunity to pull it off.
Here’s why Penn decided to let him buy the company he founded in 2003 back and what it taught him about getting rich in America.
According to Portnoy, the brash image he had cultivated for himself online while building the Barstool Sports business quickly collided with the heavily-regulated gambling and casino industry Penn Entertainment operates within.
“Gambling [is] super regulated, you need licenses,” he told Sharpe. “If a state regulator in Indiana doesn't like you, you're in trouble. I'm a controversial guy [and] it was definitely creating issues for Penn getting licenses.”
Penn Entertainment CEO Jay Snowden hinted at these struggles during an earnings call in 2023, Variety reported.
“Being part of a publicly held, highly regulated, licensed gaming company, it became clear that we were an unnatural owner” for Barstool Sports, he told shareholders.
Portnoy also admitted that Barstool Sports was losing money at the time. However, the ultimate trigger for the sale was Penn’s megadeal with ESPN to rebrand its sports betting service from Barstool Sportsbook to ESPN Bet, according to Variety.
As part of the deal, Portnoy agreed to repurchase Barstool and abide by specific non-compete restrictions. Penn also retains the rights to claim 50% of the gross proceeds from any subsequent sale of the company.
As of 2025, Portnoy is still the sole owner of Barstool Sports. But he claims the company’s boomerang journey taught him a key lesson about how to get rich in America.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Portnoy’s roughly $550 million windfall from selling his company underscored a key lesson — building and selling a business can be one of the most powerful wealth-building tools in the U.S. economy.
