Penn National Gaming (NASDAQ:PENN) is finding unique ways to capitalize on its stake in Barstool…
Posted on: August 4, 2021, 02:21h.
Final up to date on: August 4, 2021, 02:45h.
Devin O’Connor Learn Extra
The Barstool Fund is right here to remain.
Kenney’s Irish Pub in Michigan expresses its because of the Barstool Fund and founder Dave Portnoy final yr. Portnoy revealed this week that the charity is now a everlasting useful resource for companies enduring hardship. (Picture: FOX 2 Detroit)
Barstool Sports activities founder Dave Portnoy says his nonprofit, fashioned final yr to help small companies, is changing into a everlasting charitable group.
Portnoy established Barstool Sports activities in 2003. He offered a 36 p.c stake within the digital media turned sports activities betting firm to Penn Nationwide Gaming in January of 2020 for $163 million.
The Barstool Fund launched in December of 2020. So far, it’s obtained greater than $41.5 million from 230,867 supporters. Portnoy launched the charity with $500,000 of his personal money. The fund has to date assisted 443 companies.
We’ve determined to show the Barstool Fund right into a full-time charity — one thing that will probably be present not solely throughout COVID, and hopefully COVID doesn’t come again, however for many years,” Portnoy defined on social media. “I really imagine entrepreneurs are the spine of the US.”
The Barstool Fund replace included Portnoy revealing that the charity is searching for an skilled nonprofit govt to steer the group. The job posting requires an applicant to have a minimum of 5 years of managerial expertise main a 501(c)(3) group, good enterprise judgement, and powerful sense of stewardship.
The long-term purpose, Portnoy says, is to “make an enormous distinction not solely throughout COVID, however for the long run small companies of the US.”
Barstool Sports activities little doubt resonates with the “bro tradition.” It amassed legions of followers by means of its viral digital media content material that’s frequently shared, appreciated, and beloved throughout quite a lot of channels.
The American Gaming Affiliation (AGA) says almost 70 p.c of “core sports activities betters,” those that place a sports activities bet a minimum of yearly, are male. The bulk are additionally beneath the age of 34.
With that knowledge in thoughts, it’s no marvel why Penn Nationwide believed investing $163 million into Barstool Sports activities was a sound endeavor. Its January 2020 take care of Barstool moreover gives Penn Nationwide with the rights to amass the remaining stake within the firm in what might run $450 million in whole.
Following Penn’s funding in Barstool, the web model quickly ventured into the sports activities betting area. The Barstool Sportsbook is licensed and working in Pennsylvania, Michigan, Illinois, and Indiana. Barstool’s on-line interactive on line casino is stay in Pennsylvania and Michigan.
Numerous Companies Assisted
The Barstool Fund’s unique intent was to offer monetary assist to struggling eating places amid the pandemic. However since then, the charity has stepped in to assist quite a few companies in various fields.
Bowling alleys, laundromats, salons, indoor sports activities amenities, psychological well being providers, yoga and dance studios, and clothes producers are just some examples of the varied companies assisted.
To qualify for assist, the small enterprise should proceed to pay their workers and chorus from decreasing jobs. For these deemed certified, the Barstool Fund usually points a grant within the quantity that can enable the enterprise to outlive one other 30 days.
Companies are capable of obtain additional donations from the fund to verify the unique profit isn’t for nothing.
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