Unnamedtemporarysportsblog.com

If I sold anything for $450M, I wouldn't care what anyone thought

 

In answer to the $450 million question. ...

Portnoy had already sold a majority stake at a valuation in the low tens of millions of dollars to Peter Chernin several years ago. So he isn't seeing anything near $450 million.

The employees of Barstool retain only 28 percent of the company in this latest deal, and that includes people other than Portnoy.

It also isn't a straight check being cut for $450 million for a 100 percent stake. Penn National is buying a 36 percent stake up front, and that is being paid for with convertible preferred stock of Penn National in addition to cash; the cash stake is $135 million. In three years, they are committed to bringing their stake up to 50 percent with $62 million. At that point they have call rights to buy more and make themselves the majority owner. ... but only if they choose.

What that means to Portnoy? ... he probably pocketed $10 to $20 million when he sold to Chernin. He'll likely see millions of dollars on this sale, but not the hundreds of millions people have been assuming. The site brought Portnoy a lot of money. But Peter Chernin is the one who is going to see the bulk of the money from the sale at the ridiculous valuation.