How Dave Portnoy Net Worth Made Him Live a Luxurious Life

David Portnoy is an American sports media figure and internet mogul. The net worth of Dave Portnoy amounts to $120 million. Portnoy has amassed his wealth as the originator of the digital sports giant known as Barstool Sports.

Early Days and Professional Journey of Dave Portnoy

David Portnoy was born on March 22, 1977. He completed his studies at the University of Michigan in 1999, majoring in education. After college, he relocated to Boston, where he worked for an IT market research firm. He founded Barstool Sports in 2003 as a print medium for the Boston metro area. The publication featured fantasy sports forecasts, gaming advertisements, and sports news. The website was introduced in 2007. Over the subsequent decade, Barstool evolved into an improbable force in the sports media. Portnoy was recognized for consistently putting in over 10 hours a day during the website’s initial phase, even working on both Saturdays and Sundays.

On the site, Dave is known as the “El Presidente” or “Stool Presidente”. The platform is a blend of edgy sports coverage and alluring women. The brand has been likened to a blend of “ESPN and Girls Gone Wild”, and has proven to be highly successful, making BarstoolSports one of the most sought-after sports sites on the web today.

In 2017, Portnoy launched a pizza review series named “One Bite with Davey Pageviews”. The unofficial aim of the show is to review every pizza place in Manhattan.

Portnoy was wedded to Renee Satherthwaite from 2009 to 2017.

Acquisition of Barstool Sports by The Chernin Group

In January 2016, it was reported that Peter Chernin’s The Chernin Group had acquired a controlling interest in Barstool for $10 – $15 million. By 2018, Chernin had put in $20 – 25 million to raise his stake to 60%. Portnoy retained full control over the company’s content, which eventually encompassed podcasts, gambling content, merchandise, alcoholic brands, TV shows, and more.

Acquisition of Barstool Sports by Penn National

In January 2020, Penn National Gaming obtained a 36% interest in Barstool Sports at a valuation of $450 million. The initial cash amount transacted totaled $163 million. Penn National has the option to pay an additional $62 million over the course of three years to raise its stake to 50%. After the initial transaction, The Chernin Group’s 60% stake was reduced to 36%, aligning with Penn National’s stake. The remaining 28% is still held by Portnoy and a few key executives, such as CEO Erika Nardini.

In the days immediately following the announcement, the shares rose to an all-time high of $38. Unfortunately, due to the global coronavirus outbreak, Penn’s stock value plummeted. By March 17, the stock had fallen to $7 per share, marking an 81% decline from its peak.

By May 10, it had rebounded to around $20 per share. By August, it had more than doubled to approximately $50 per share. By January 2021, it had surged to over $100 per share.

Stock Holdings

As per a Penn Gaming Q1 2020 10-Q SEC filing, a portion of the $163 million in cash, approximately $23 million, was allocated as convertible preferred stock, and $3 million was earmarked for “forward arrangements”. The convertible stock can potentially be converted into about 0.5% of Penn Gaming’s market cap, or 883,000 shares of Penn Gaming.

At the time of writing, Penn Gaming’s market cap stands at $16 billion. Hence, a 0.5% stake would be valued at $80 million at that level. It is reported that Dave owns approximately one-third of this stake, amounting to around $26 million. When combined with his remaining approximately $90 million stake in Barstool and the wealth from prior transactions, we estimate Dave Portnoy’s net worth to be $120 million.