Dave Portnoy Starts Layoff For 25% Of Staff After Reacquiring Barstool Sports: “People Have To Step The F*ck Up”
Dave Portnoy, the founder of Barstool Sports, openly acknowledged this week on Barstool Radio that his company is currently undergoing a series of layoffs. The news reveals that Barstool Sports is set to reduce its workforce by nearly 25%, equating to approximately 100 positions being eliminated on Thursday.
These layoffs follow Portnoy’s recent regaining of control over the company, which transpired after its separation from Penn Entertainment. Portnoy had forewarned about these cutbacks and his plans to streamline operations, and now the reality of the situation is manifesting.
At present, Barstool Sports maintains a workforce of about 430 employees. Over the span of 3 and a half years with Penn Entertainment, the company expanded its staff by approximately 300 individuals. Unfortunately, the necessity for these payroll reductions arises in the wake of Portnoy’s repurchase of Barstool Sports from Penn Entertainment for a nominal sum of $1, a transaction that occurred just a few weeks ago.
Addressing the issue candidly, Portnoy expressed his discomfort with the layoffs, emphasizing his aversion to letting people go, even in cases of incompetence or lack of performance. He described the process as arduous and lamentable, underscoring the tough decisions that the company must make in order to restore fiscal balance.
“People who know me from the beginning I hate firing people. You can be incompetent, not work and I generally don’t fire because I hate it so much. It’s the worst thing to f–king do,” he stated. “Having said that, we’re in a position it’s a no-brainer. It’s not like I have that moral – well you can’t do it because nobody will have jobs. We’ll all not have jobs. So we have to get back to a break-even thing. We’re losing a lot and it sucks.”
Barstool Sports was established by Portnoy in 2003 and saw a significant shift in ownership in 2016 when a majority stake was sold to The Chernin Group. Earlier this year, Penn Entertainment finalized its acquisition of Barstool Sports for a substantial sum of $551 million, only to experience financial losses in the ballpark of $800 million due to the venture.
Penn Entertainment had initially anticipated that Barstool’s brand recognition in sports media would bolster its sports betting enterprise. However, the reality was far from the anticipated success. Subsequently, Penn Entertainment went on to collaborate with ESPN to overhaul its existing sportsbooks.
Portnoy seemed content with the development, regarding it as a “win-win” situation, and he extended well-wishes to ESPN and Penn Entertainment for their future partnership. More importantly, from his perspective, the sale has restored the company’s autonomy and irreverent ethos, allowing it to revert to its roots of the “pirate ship.”
The founder further affirmed his commitment to Barstool Sports, pledging never to sell the company again, and asserting, “I’ll hold it till I die.”
While that might hold true, Portnoy is urging those who are still standing alongside him to brace themselves for a challenging journey, emphasizing, “People have to step the f–k up.”
Information for this briefing was found via New York Post and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
