• Loading stock data...
Saturday, December 14, 2024

Inside PENN’s Investor Presentation for Its ESPN Partnership

  • PENN projects ESPN Bet will reach as high as a 20% share of the U.S. online sports betting market by 2027.
  • The $2 billion deal comes almost a month after Disney CEO Bob Iger said he was open to selling an equity stake in ESPN.
Rafael Henrique/SOPA Images/Sipa USA

PENN Entertainment’s stock has surged 14% since yesterday’s licensing deal announcement to create ESPN BET. Penn’s Barstool Sportsbooks will be rebranded as ESPN Bet under the landmark agreement to get legacy sports network go full-in on legalized sports betting after some initial trepidation from parent company Disney.

PENN will will make $1.5 billion in cash payments to ESPN over the next decade and grant ESPN roughly $500 million worth of its shares. Below is the 13-page deck PENN shared to its investors on its ESPN partnership, which projects that ESPN Bet will reach as high as a 20% share of the domestic online sports betting market by 2027.

The deal merges PENN’s existing database of 27 million gaming customers with the front-facing brand of ESPN, whose lean into gambling content included hiring on-air personality Pat McAfee away from the sports betting company FanDuel.

As noted in the deck, ESPN Bet will have access to reach the network’s 370 million social media followers, 100 million monthly digital unique viewers, and 25 million ESPN+ streaming subscribers. ESPN’s fantasy sports app, a natural bridge to meet potential sports bettors, reached 11 million users during last year’s football season.

ESPN and Penn had been winding down discussions of its deal a week ago before Tuesday’s announcement, a source told Front Office Sports. The betting agreement comes nearly one month after Disney CEO Bob Iger said he would consider finding a strategic partner to take an equity stake in ESPN, with potential suitors including tech companies Apple and Amazon as well as major sports leagues.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

The Top-Secret Operation to Create the Army-Navy Football Uniforms

The two-year process includes dozens of employees, NDAs, and military historians.
Mina Kimes and Ryan Clark at NFL draft

ESPN Talent Turns Its Fire on Aaron Rodgers

The network’s NFL talent ripped the QB as ‘hypocritical’ this week.
Indiana Fever forward Aliyah Boston (7) celebrates with Indiana Fever guard Caitlin Clark (22) altering recording a triple-double Wednesday, Sept. 4, 2024, during the game at Gainbridge Fieldhouse in Indianapolis. The Indiana Fever defeated the Los Angeles Sparks, 93-86.

The Meteoric Rise of Women’s Basketball in 2024

The business of women’s basketball exploded this year.
Dec 12, 2024; Chapel Hill, NC, USA; North Carolina Tar Heels new head coach Bill Belichick speaks to those attending his hiring announcement at Loudermilk Center for Excellence.

UNC Job Brings an End to Belichick’s Short-Lived Media Career

Bill Belichick had six media jobs this football season.

Featured Today

Nov 2, 2024; Denver, Colorado, USA; Detailed view of a Wilson NBA basketball held by a referee during the second half between the Utah Jazz against the Denver Nuggets at Ball Arena

‘Obvious Weak Point’: Refs Remain an NBA Gambling Concern

A season after Jontay Porter, the biggest risk may not be players.
Nov 2, 2024; Ann Arbor, Michigan, USA; Michigan Wolverines cheerleader runs with a flag before the game against the Oregon Ducks at Michigan Stadium.
opinion
December 7, 2024

College Football’s Billionaire Backer Era Begins

Is this the new normal in CFB recruiting?
LA Galaxy forward Dejan Joveljic (9) celebrates with midfielder Riqui Puig (10) after scoring a goal against Seattle Sounders FC in the second half in the 2024 MLS Cup Western Conference Final match at Dignity Health Sports Park
December 6, 2024

With or Without Messi, Major League Soccer Is Barreling Into the Future

After the Cup final, the league looks to accelerate its growth.
Dec 18, 2022; Lusail, Qatar; FIFA president Gianni Infantino claps during the awards ceremony after the 2022 World Cup final between Argentina and France at Lusail Stadium.
December 2, 2024

FIFA Wants More Matches. Resistance Is Growing Inside the Global Soccer World

Resentment and frustration over expanded schedules is nearing a breaking point.
DraftKings

Sens. Say DraftKings, FanDuel May Have Conspired to Crush Competition: ‘One Company’

The senators asked the FTC and DOJ to investigate the gambling companies.
DraftKings
November 8, 2024

DraftKings Lowers Full-Year Guidance After Brutal NFL Outcomes

DraftKings cited a tough start to the fourth quarter in lowering its 2024 guidance.
December 4, 2024

Poker Pro Pleads Guilty to ‘Massive’ Sports Betting Tips Fraud

Cory Zeidman ran a scheme that amassed $25 million over 14 years.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
Sports betting Analyst Steve Coughlin gives out high-fives on the set of ESPN's College Game Day at the University of Texas, ahead of the Longhorns' game against the Georgia Bulldogs in Austin, Oct. 19, 2024.
November 7, 2024

ESPN Bet at Critical Point As Penn Reports Quarterly Earnings

The two sides agreed to a 10-year deal last August.
Nov 4, 2024; Kansas City, Missouri, USA; Kansas City Chiefs wide receiver DeAndre Hopkins (8) celebrates with quarterback Patrick Mahomes (15) after scoring against the Tampa Bay Buccaneers during the second half at GEHA Field at Arrowhead Stadium.
November 6, 2024

Missouri Becomes 39th State to Legalize Sports Gambling

Missouri was the only state with sports gambling on its ballot this election cycle.
November 5, 2024

On the Ballot: Sports Betting, Former Athletes Impacting the 2024 Election

Several U.S. Senate candidates have sports backgrounds, while Missouri voters will consider legalizing sports betting.
Tony Hinchcliffe at Donald Trump rally.
November 4, 2024

Sports Betting Companies Holding Comic at Arm’s Length After Trump Rally

Hinchcliffe drew criticism over his comments at a rally for Trump.