Why The Barstool & Penn Partnership Didn't Work Out

[@DavePortnoy]

Full episode here: kzbin.info/www/bejne/fIjWhKeeitx5haM

[@Doprahwinfrey]

Fire Kate she is the worst

[@wheeler2816]

This inside talk is the stuff I can't get enough of

[@pejpm]

At it’s core, Barstool needs advertising $. The gambling, the events etc help, but the core business is eyeballs and ad $. They need to wildly cut costs, it’s a low margin business model, the only way they can survive is drastically scale back to the core competencies.

[@Michael-ok6pe]

Said it’s $10-12M annual loss on $200M in revenue from his interviews/ conversations. Not drastic cuts needed imo especially when likely $2M of finance/hr / etc that’s there just because they report to a public company.

[@kengurney5725]

at it's core? is that an apple joke, in reference to the guy eating an apple in the video?

[@pejpm]

@@kengurney5725 no but it should have been

[@pejpm]

@@Michael-ok6pe $12m loss on $200mm revenue is significant. Only so much of that $12mm can come from headcount. Media people get paid fucking nothing, guaranteed the average blogger/content person is on $70-80k if they’re lucky, he’d have to let go a LOT of people to turn a profit just through expense management. Wouldn’t surprise me if they move location again too. Look at what happened to Vice Media, similar story. Tried doing too much bullshit and went from ridiculous valuation down to being basically written off. The fact that Penn sold it back to him (minus the gambling) for $1 indicates that they deem the content side of the business to be essentially worthless. The appetite for businesses that have lots of users/viewers but no clear path to profitability is not what it was a few years ago. High rates means future cashflows are discounted back a lot more aggressively, financing will be harder to find and more expensive. I wish him well, I’ve been reading off and on since 2008 (Mo still the best writer they’ve had), but even SoftBank wouldn’t touch this one.

[@scott1476]

Francis watching and eating in the background like the true serial killer he is

[@fredpierce946]

Thought he got fired

[@tccandler]

I blame Rico Bosco for eveything bad in this world.

[@poopshoes7579]

I blame Red and and Brandon Walker

[@SneeUnit]

He caused inflation.

[@SOURJDADDY]

You have started a war I don’t think you are ready for 😂😂😂😂

[@camerondrummond9918]

he’s ur god eh

[@poopshoes7579]

@@camerondrummond9918 Rico the rockstar is a god….who else survives harassing a coworker’s spouse? Only Rico

[@ma34529]

I'm surprised Dave let KFC interrupt him so much 😅

[@kerstansexton9934]

He brings nothing to the company

[@tootoo-yd4cm]

i know tthis video is older bu my god KFC is insufereable. me me me me me. no one give a shit about you, stop talking

[@patrickhudson1534]

Can we always get Francis' tiny face in the corner of the screen eating while he looks on intently

[@aalokjoshi6839]

KFC is so delusional lol. Buddy there is zero loyalty when it comes to betting. Odds and UX are the only thing that matters. Barstool book was absolutely garbage. Odds and UX wise. Absolutely trash.

[@timlogan5864]

There's a financial conversation going on? I thought this was a Francis eats an apple video.

[@From_Nothing_Gaming]

The man knows how to polish off an apple.

[@9tailskyle]

Thank the lord that fisherman didn't do any permanent jaw damage

[@BostonsF1nest]

Barstool needs to bring back the Barstool Blackout Tour circa 2012

[@EPiche09]

I'm still waiting for a password reset link from Barstool Sportsbook. It's been about 6 months.

[@RealTalkAlexV]

What’s with the random cut to caroline 😂😂😂

[@frankiem8921]

You just have to watch 30 seconds of this video to understand the cluster F of this company and why Penn cut and run

[@myronheinke2662]

probably because no one can fix the download link on for the pizza app on google play. attention to detail is what kills you in the end.

[@GodfatherBoxSet]

I agreed with the Penn decision to work on the app. I switched to draft kings becuase the UI on the barstool sportsbook was so bad. Hopefully it can get better and I'll switch back

[@MrRyinoyea]

I work at a casino where Barstool operated. Penn tried pretty hard to get people to use it but everybody would tell me how bad the interface was and then they started offering worse odds for the privilege. I didn’t realize they were still using Kambi as 3rd party to make the odds.

[@VicelessNomad]

KFC stress stroking his leg, cracking knuckles…😂 #doesntlikewhereitsgoing

[@JDL0427]

Well these guys are in for a ride. This is not going to end well.

[@jasonhoppe781]

Barstool will be fine it’s all the other bs they were doing that won’t be. Plus when Dave wasn’t the owner he only focused on his part. Coming back to the head of the table he sees all the lazy people that have been stealing money not working. It’s pathetic

[@July4.1776]

Writing is on the wall. Dave is shitting his pants.

[@frankiem8921]

This was his baby, he knew what was going on, playing dumb isn’t an excuse for him

[@matta6395]

@@jasonhoppe781I very much disagree with this take

[@DOC33336]

really happy to see Dave back. Go Pres Go.

[@perfectspec]

I spent $98 on the Barstool Store last week. I hope that helps. Good luck

[@iodedonpepto]

You bought 1 hoodie?

[@iodedonpepto]

The hilarious thing is Dave countless times shit on draft kings and fanduel and both companies dwarfed Penn in popularity, exposure and revenue. Penn buying barstool has to go down as one of the worst business decisions ever

[@dolan561]

1:35 The camera guy gets it...

[@NycXTool]

KFC rocking the Clarks Wallabees..... A NYC staple

[@jonnymattis]

Once again Francis steals the show

[@RKLIFE17]

I use the barstool Sportsbook. What will happen to it?

[@tee1up785]

The app keeps crashing. “Oops, something went wrong. Try again”. Just a heads up if anyone from BS sees this.

[@vger9186]

This video is a prime example of where capitalism can go horribly wrong.

[@BootsieTheGreek]

I read somewhere they still get a piece of barstool monetizing? Also the sale of barstool later ?

[@stratusvapes6908]

Penn gets 50% of the sale if Dave ever sells barstool again. plus barstool cant partner with a gambling company anymore (competition to penn)

[@Ben_1878]

The dude in the back just watching and eating do some work 😅😅

[@user-tr8rg1xg9e]

Might be time to give Nate a promotion.

[@joshlovely13]

That short cut was a layoff coming! Sorry blondie

[@reppy1]

How does a gambling company not have their own traders , deadset $2 company

[@calsurf93]

This is what a adderall shortage and entitlement will do

[@garrettklingshirn7768]

Outside of Dave, these geniuses know nothing about how the business they work for operates or was doing. Dave clearly has a loose grasp of a lot of the details too.

[@letterbombfilms]

Barstool is a little tiny company...its not ESPN, lol. Penn were sold a song.

[@BostonsF1nest]

Tesla is another company that didn’t generate a profit until recently but when it did- Elon Musk immediately became one of the richest men in the world.

[@Veyronp87]

Barstool is going under pretty soon, Penn dumped it for a reason . Dave made his fortune so good for him but don’t expect Barstool to be around for years and e

[@daryllsheremeta4811]

Who is buddy in the backround stuffing his face and wanting in on the conversation. 😂

[@adamwaller1528]

Francis gets it 😉

[@rdigital5020]

I'd start with the creepy red headed dude in the background...staring and eating😮

[@BostonsF1nest]

Nah he’s one of the funniest dudes there

[@MoonBull13]

What if he actually let Dave finish a sentence. That would be awesome

[@clebo99]

What is cambi?

[@BettingNetwork]

Can you spot Francis Ellis?

[@mikeshar852]

Does barstool need a plumber??🌲👀🌲😂

[@guitarlearningtoplay]

That explains nothing tbh. But I already know what happened. It’s simple. It was gambling company who thought they could get gamblers by growing Barstool out to compete mainstream media. So they spent a fortune growing it, but it didn’t pan out that way because Barstool is a very niche category, that most sports guys don’t fall into especially gamblers. And it’s known as a goofball type of atmosphere which is not the type of place you want to spend big money gambling. If Bank of America started a casino it would get 10x more gamblers just because of the trust. So then Penn spent all this money and basically it wasn’t organic growth so it was just causing a huge amount of debt. So they gave it back to Dave not for free but for giant debt they accumulated. So not Prez has to cut out the waste especially if he wants to keep some of the bloat like the bar.

[@jimlahey3919]

This ship has been taking on water for years. Barstool will no longer exist inside of 10 years. Poor management, poor staff.

[@BostonsF1nest]

They’ll turn it around because Dave is the main reason ppl watch Barstool. They stopped making it content based and started using it to funnel users towards their online sports book. That changes now

[@Koi-addict33]

Lets behonest they in major trouble and the woman who took the company down the path of penn and net loss from profit is still in charge

[@Greeen0]

Why isn't the red headed guy in upper left corner working? He just keeps sniping in yalls conversation. What a werdio, he wants to be in that group so bad!

[@Nickg222]

the old barstool sportsbook app / website was WAY better.. the new APP they released is absolute dog. Terrible.. lol.

[@paulm5458]

Just downloaded all your apps. I hope you all succeed.

[@Bruinsin7]

Brady leaving the Pats was the worst thing for barstool. Pre Jail Rundown. The Sit in. Post Jail Rundown. Dave ripping 6 cigars while the others look on in disgust. Roger ripping his skinny jeans. Those times will never be matched. All this tiktok influencer bullshit is not the Stool that we knew and loved.

[@tonyriney7257]

Francis going to town on that apple!

[@dev_724]

Kev, look out! Theres a dag on ghost behind you

[@GelatoooBuzzz]

You don’t need to post a video about why it didn’t work, you guys said too much shit about gambling and betting on you’re different barstool livestreams that it caused too much damage for penn so they dipped to someone more careful

[@GelatoooBuzzz]

Simple as that barstool talks too much to be associated with a billion dollar business plan

[@jimsonjohnson3761]

You gotta be from Stupidtown to reply to your own comment

[@highandhappy]

A weed segment should be on barstool and we should do the segment

[@theravagedgrapefruit8190]

Penn found out barstool lied on its resume basically!

[@scoob06STi]

The dude eating in the background was very distracting

[@DavidGeorge197]

Let Dave talk

[@Deerpoo22]

Ya know Quasimodo predicted all this

[@annmarie6060]

Only time I watch KFC is when Dave's on! Go back to mornings where No One Watched!

[@ryanlau3133]

Wish KFC was gone

[@EddieIrvine106]

KFC needs to shut up

[@Yomamaissoo]

He knows it is all falling apart

[@Kurokyura]

We don’t care anymore

[@murph2511]

KFC is the legit worst. Add him to the layoffs

[@Koi-addict33]

GET RID OF ERICA AND START RUNNING IT YOURSELF AND YOU MIGHT SAVE IT

[@ECooks]

kfc literally blows this dude

[@jayp9316]

What is this? Crossing the legs is thus a primitive defensive technique. People usually cross their legs when they feel uncomfortable and insecure. It's a 'closed' body language gesture that closes you off from other people.

[@jimsonjohnson3761]

Are you fucking R'd?

[@pejpm]

All the ‘alleged’ rapey behavior probably didn’t help

[@aalokjoshi6839]

Shutup. It was all fake news and proven to be so. Foh hater.

[@jimsonjohnson3761]

Alleged is literally just old media for "we are pretty sure we're just lying to you but you don't know the facts either"

[@pejpm]

@@jimsonjohnson3761 ok Trump

[@rivercloud32]

He is going broke

[@MrSwaggerLlama]

You have always been broke 😂

[@aalokjoshi6839]

Let’s see he sold his share of the company for several hundred millions of dollars. Now he owns a 100% of the company for $1 and has total control to do whatever he wants. He is not going broke. There is only upside for Dave personally.

[@nogaroblu9321]

It’s remarkable how someone as successful as Dave knows such little about real business.

[@frankiem8921]

Agreed and it’s sad tbh

[@dougfriend8669]

Lol Brick Watch is great example

[@nogaroblu9321]

@@dougfriend8669 I hate to say it but Barstool in its current form will fail as it will not be profitable at all-likely not even close to break even as Dave wishes. All that will be left are Dave and his pizza reviews and maybe a few podcasts.

[@Cbutton]

“We were losing them a shit ton”

[@therealspoon69]

nardini turned barstool into a gay tiktok hangout for women.

[@bigpat1836]

Couldn’t ever bet In the south east where college football is biggest. Shame

[@brycesattler2301]

🧡💜🌴🐾🐅🏜️

[@chogers24]

KFC never changes his jeans and also those shoes are awful

[@jamescameron204]

And that shirt fck, guy can't dress up whatsoever

[@jimsonjohnson3761]

You're from Iowa. Lime you know about clothes at all. You guys are still wearing jorts in that mid country shit hole