After Barstool Sports sale, founder Dave Portnoy getting ‘the hell out of NY,’ betting on horses and Penn
Portnoy teases moving to Florida, taking Penn 'to the moon' after $387M sale of sports website
Barstool Sports founder Dave Portnoy discusses deal with Penn Entertainment and its takeover of Barstool sports and debates the nature of the stock markets as meme stocks become a focus on young investors.
On "Varney & Co." Friday, Barstool Sports founder Dave Portnoy discussed what his next plans are after selling the remainder of the sports media platform’s stock for $387 million on Thursday.
"First thing I gotta do, is I got to make sure I get the hell out of New York, right? And get down to Florida and establish some residency so the government can't steal all my money," Portnoy told FOX Business’ Stuart Varney.
"This weekend, I'm going to Saratoga with some buddies. I'm going to bet on the horses," he continued, "so I'm just going to live the same lifestyle that I've always done, except maybe more extravagantly."
Casino operator Penn Entertainment took full control of the sports website founded by the controversial media tycoon Portnoy, according to a US Securities and Exchange Commission filing on Wednesday. The purchase of the remaining Barstool share will be completed by February 2023.
PENN PURCHASES REMAINDER OF BARSTOOL SPORTS FOR $387 MILLION
The company initially purchased 36% of the website in 2020 for $163 million in a deal that combined sports gambling and online media. The deal stipulated that Penn could buy the remaining shares via a two-step process for $387 million.
Barstool Sports founder David Portnoy says he's "getting the hell out of New York" on "Varney & Co." Friday, August 19, 2022, after selling the sports website for $387 million to Penn Entertainment. (Getty Images)
On Friday, Portnoy explained how the majority of his market net worth comes from Penn investments, and hopes to "take this thing to the moon."
"The more Penn goes up, that's my investment," Portnoy said. "The other stuff is all fun and games, but Penn is still where most of my net worth is tied up."
Portnoy also responded to claims that he’s trying to avoid capital gains tax by borrowing against his holdings in Penn, saying he’s not using any "tricks."
"I don't know where all these tricks are coming from, but I don't have them and I'm paying out the guts for it," Portnoy said. "So if you know any little inside tricks on how to get around taxes legally, I'm all ears, but I pay 50%. I feel like an idiot."
While clarifying he’s "happy to pay" what’s expected from his investment income, Portnoy believes the government is "so wasteful" with taxpayer dollars.
"There's certainly things that we need as a country that you've got to pay taxes for," Portnoy noted. "So it's not so much how much they take, but I really feel like I'm just taking it and lighting it on fire when I give it all to them."
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Barstool Sports founder and president Dave Portnoy discusses LIV Golf, the viral Little Leaguers hug, and SafeMoon's lawsuit in a wide-ranging interview on 'Varney & Co.'
Portnoy asserted he’s done "all the research" on Penn’s future in the market and as an entertainment and gambling company, saying "all the stock market is a game."
"If you look at the Penn stock, it trades with the rest of the gambling stocks almost lockstep for the past year, year and a half. We don't operate like those guys," Portnoy explained. "Those guys are spending billions of dollars on advertising and literally burning money and losing hundreds of millions of dollars. And we trade exactly like them. There's no actual differentiation."
FOX Business' Phillip Nieto contributed to this report.