Barstool Sports, the popular sports media company founded by Dave Portnoy, is facing significant layoffs that will result in the loss of around 100 jobs. The decision comes after Portnoy regained control of the company following its breakup with Penn Entertainment, which had acquired a majority stake in Barstool in 2020 for a staggering $551 million.
Portnoy, who has been open about the impending cuts, expressed his reluctance to let go of employees, stating, "I hate firing people. It's the worst thing to f-king do." However, he emphasized that the layoffs are necessary to bring the company back to a break-even point, as Barstool has been experiencing significant financial losses.
The partnership with Penn Entertainment was initially seen as an opportunity for Barstool to expand its sports betting business by leveraging the recognizable brand. However, the venture proved to be unsuccessful, with Penn Entertainment incurring hundreds of millions of dollars in losses. Following the sale back to Portnoy earlier this year, Penn Entertainment announced a rebranding partnership with ESPN for its existing sportsbooks.
Portnoy spoke positively about the sale and wished ESPN and Penn Entertainment success in their collaboration. He also expressed his relief at being able to return to the company's original spirit, stating, "It's back to the pirate ship. By the way, I will never sell Barstool Sports [again], ever. I'll hold it till I die."
Despite the reassurances, Portnoy has urged the remaining employees to brace themselves for a challenging journey ahead, asking them to "step the f-k up." The layoffs mark a significant shift for Barstool Sports, as the company navigates its future under Portnoy's leadership and works towards financial stability.
These developments at Barstool Sports highlight the volatility and challenges faced by media companies in an ever-changing landscape. As the company adjusts to its new structure and focuses on its core values, the future remains uncertain for both the employees affected by the layoffs and the broader Barstool community.
