Dave Portnoy Net Worth (Money & Salary)

What is Dave Portnoy’s net worth and salary?

An American sports media personality and internet entrepreneur, Dave Portnoy, boasts a net worth of $150 million. His wealth stems from founding the digital sports powerhouse Barstool Sports. In a series of transactions, David sold portions of Barstool, culminating in a deal with Penn Gaming in August 2022.

Initially, in 2016, he sold a majority stake to The Chernin Group. Then, in January 2020, Penn Gaming purchased a 36% stake from the founders for $163 million, with the option to acquire the entire company later. By August 2022, Penn Gaming exercised its option, securing Barstool entirely for a valuation of $390 million. Overall, Penn Gaming spent $550 million to acquire all of Barstool. More details about these transactions and their effect on Portnoy’s fortune will be discussed later in this article.

In an unexpected development, on August 8, 2023, it was announced that Dave had bought back Barstool from Penn Gaming. This move reinstated Portnoy as the sole owner of the brand for the first time in nearly ten years. Reports indicate that he re-acquired Barstool for a symbolic price of just $1.00. This isn’t a typo. Further information on this transaction will follow later in this article,

Early Life

On March 22, 1977, David Portnoy came into the world in Swampscott, Massachusetts. Following his graduation from Swampscott High School, he attended the University of Michigan, ultimately earning a degree in education in 1999.

Post-college, he relocated to Boston and took a position with an IT market research firm known as Yankee Group.

Barstool

In 2003, Dave established Barstool Sports as a print publication targeting the Boston region. The publication provided fantasy sports insights, gaming advertisements, and sports coverage, eventually launching a website in 2007. Over the subsequent decade, Barstool transformed into an unexpected powerhouse in sports media. During the site’s formative years, Portnoy was recognized for working 10+ hour days and often clocking in on weekends.

On the site, Dave is affectionately referred to as “El Presidente” or “Stool Presidente.” It offers a blend of humor-laden sports commentary and appealing visuals of women. The brand has been likened to a mix of “ESPN and Girls Gone Wild,” a combination that evidently appeals to audiences, making BarstoolSports one of the most frequented sports websites across the internet today.

In 2017, Portnoy initiated a pizza review series named “One Bite with Davey Pageviews,” which unofficially aims to evaluate every pizza establishment in Manhattan.

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Chernin Acquisition

In January 2016, a stake in Barstool was sold by Dave to Peter Chernin’s The Chernin Group for a sum between $10 – $15 million. By the year 2018, Chernin had invested between $20 – 25 million to raise his stake to 60%. Despite this, Portnoy maintained full control over the company’s content, encompassing podcasts, gambling content, merchandise, alcohol brands, TV shows, and more.

Penn National Acquisition #1

Penn National Gaming acquired a 36% stake in Barstool Sports in January 2020, at a valuation of $450 million. Initially, the cash transaction totaled $163 million. Additionally, Penn National secured an option to invest an extra $62 million within three years to increase its ownership to 50%.

Once this initial deal was finalized, The Chernin Group’s stake was reduced from 60% to 36%, aligning it with Penn National’s stake. The remaining 28% continued to be in the hands of Portnoy and a few key executives, including CEO Erika Nardini.

Penn Gaming Stock

Following the announcement, shares of Penn Gaming skyrocketed to an all-time high of $38. However, in the aftermath of the global Coronavirus pandemic, Penn’s stock took a drastic turn. By March 17, it had dropped to $7 a share, marking an 81% decline from its peak value.

On May 10, the stock rebounded to approximately $20 a share. By August, it more than doubled, nearing $50 a share, and by January 2021, it exceeded $100 a share, peaking at $130 in March of that year.

Portnoy’s Stock Holdings

As per a Penn Gaming Q1 2020 10-Q SEC filing, of the $163 million cash transaction, around $23 million was allocated as convertible preferred stock, and $3 million was designated for “forward arrangements.” This convertible stock had the potential to be converted into about 0.50% of Penn Gaming’s market cap OR 883,000 shares of the company.

With a market cap of $10 billion for Penn Gaming, a 0.50% stake would equate to $50 million. Reportedly, Dave owned one-third of this stake, which—based on the $10 billion valuation—would amount to approximately $16 million. When factoring in his remaining roughly $90 million stake in Barstool and his wealth from earlier dealings, we estimate Dave Portnoy’s net worth to be around $100 million.

Penn National Acquisition #2

At a later date, Penn acquired an additional 14% of Barstool, increasing its ownership to 50%. Then, on Wednesday, August 17, 2022, an SEC filing disclosed that Penn Gaming had opted to purchase the remaining portion of Barstool. Through a two-step process detailed in this second transaction, Penn was set to pay $387 million to obtain the remaining 50% of Barstool it did not already possess.

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 regained 100% ownership of Barstool. He also agreed to a non-compete clause, along with other conditions that he deemed “win-win.” Moreover, should Portnoy decide to sell Barstool in the future, Penn reserves the right to half of the sale proceeds. In a statement from Penn’s CEO:

“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.”

The day after this deal was announced, it came to light that Dave managed to re-acquire Barstool for a nominal fee of just $1.00. Why would Penn agree to such terms? Firstly, the brand lacks value without Dave, and it is doubtful he would work under a different owner. Additionally, as previously noted, Penn retained the right to half the proceeds from any future sale of Barstool.

“`Again, the brand is in discussion. Additionally, it is probable that Penn Gaming is incurring a write-off in relation to the brand’s value. The financial disclosure that unveiled the Portnoy transaction also indicated that Penn Gaming plans to absorb an $850 million loss on Barstool. This is likely a result of the $550 million spent throughout the earlier transactions combined with $300 million invested and incurred in costs over the years. Moreover, the sale imposes restrictions on Portnoy, preventing him from working with a competing betting company or making negative remarks about either ESPN or Penn Gaming.

“PENN sold all outstanding Barstool shares to David Portnoy for a nominal cash payment of $1.00 and included specific non-compete and other restrictive clauses.“

The Barstool Fund

In 2020, during the peak of the COVID-19 pandemic, Dave contributed $500,000 to the Barstool Fund, which was initiated to assist small businesses affected by the crisis. Over the course of its operation, the fund successfully raised $39 million, benefiting nearly 350 small businesses.

Personal Life

From 2009 to 2017, Dave Portnoy was married to Renee Satherthwaite. In 2021, he started a relationship with Silvana Mojica.

In December 2019, a leak of Portnoy’s private video surfaced. Business Insider accused him of sexual misconduct on two occasions. However, Portnoy not only refuted these claims but also filed a lawsuit against the publication. In November 2022, a federal judge dismissed the case. Although Portnoy appealed the dismissal, he ultimately withdrew it in February 2023.

Reports indicate that in 2004, Dave Portnoy sought bankruptcy protection after suffering significant gambling losses, accumulating debts of $59,000 to credit card companies along with $18,000 owed to his father.

Real Estate

Over the years, Dave Portnoy has been associated with several real estate acquisitions, including a Nantucket home for $2.2 million, a Miami waterfront residence priced at $14 million, a $9.75 million home in the Hamptons, 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, setting a record in the area by approximately $5 million.