PENN Entertainment, Inc’s Post

As a kid that grew up on ESPN, I can't believe it is at a point where it is struggling to find a future. Matt Van Dalsem turned me onto this podcast by The Ringer on the topic of what Disney should do with ESPN. I have to say, over the past few years, it's become disheartening to see ESPN struggling to find content that aligns with their brand. In recent months, we've witnessed some rather peculiar choices, such as the "slippery stairs world championships" and the "pillow fighting world championships" being featured on ESPN stations. 🤔 While these events may have their own fan base, it raises the question of whether ESPN is diluting its brand and losing touch with its core audience. That combined with the changes in the media space as a whole, is making this a defining point in the future of ESPN. I think that ESPN is going to have to evolve with the times and find a way to be relevant to the core drivers of human emotions. It has to find it's new voice and define the new value that it is going to bring to this new generation of viewers. What got it here (being the place we went each day to watch highlights from the previous day) has been surpassed by other media options. Sports broadcast rights have become more and more competitive with brands such as Amazon coming in to the market to compete for the National Football League (NFL). The leagues have started their own channels, the MLB Network, NFL Network, SEC Network, etc. I don't know the answer for ESPN, but I do know that there can be a future for this legacy asset, with a renewed focus. As Gretzky said, ESPN should be "skating to where the puck is going, not where it has been". Shameless plug here....if ESPN is looking for amazing content that could help jumpstart their future, I'd be more than happy to introduce them to the beauty and magic of trail running. Amazing people doing unbelievable things in stunning locations....put that on your channel and drop pillow fighting. #TrailRunning #UltraRunning #ESPNRelevancy

Bruh, where’d my ESPN go? No seriously, what the heck. This is crazy. $47Billion worth or rights fees on the line over the next 7 years. Disney has lost over $11Billion on streaming. Charter/Spectrum cares about fiber but wishes cable death. What about venue and on-air advertising? Player salaries? The future of sports viewing/advertising is all up in the air. This situation is so complex that it seems there is no sustainable model. There is no reason for either side to move/give. Will all of cable be dead? We agree with Outkick – this is an extinction level event. The article by Clay Travis sums up the complexities of the situation in detail – it’s a must read – all the way through the end.   OutKick: ESPN vs. Charter Could be the end of the cable bundle… and televised sports as we know it. By Clay Travis – September 7 / Updated September 8. ESPN Vs. Charter Could Be End Of The Cable Bundle...And Sports (outkick.com)   Not only that, when we run advertising for our clients, the landscape is getting even more and more fragmented – with a plethora of services and platforms vying for attention. Now this… But gotta give FUBU-TV (FBU) credit as they grab the display ad space right next to this coverage online. Well played FUBU-TV – stock price rallies.

🚨 Big Moves in Sports Media! 🚨 ESPN dives into the betting arena, partnering with PENN Entertainment. Soon, we'll see the Barstool Sportsbook rebranded to ESPN Bet. 🎲 🔹 This marks ESPN's first significant venture into gambling, as Fox shuts down its sportsbook. 🔹 Plot twist? Barstool is returning to its roots, with Penn selling it back to founder Dave Portnoy. 💼 🔹 Portnoy's take: The regulated industry might not fit Barstool's edgy content. He vows to hold onto Barstool for life. 🎙 🔹 Financials? Penn has committed $1.5 billion to ESPN over a decade, with ESPN potentially receiving additional incentives based on performance. 💰 Endgame? ESPN aims to tap into the betting market, courting younger audiences without directly handling bets. 🎯

46% really don't understand this business or industry. There is a .000000001% ESPN brand will be the top book in US within next 10 years. UNLESS... They completely disassociate themselves with current thinking in the regulated industry and then maybe they're a 2-3% chance. If PENN Entertainment, Inc and Espn don't tear up their current playbook, this is just lipstick on a pig.. Granted, it's a lovely red.. Is there a state that would allow this type of betting to be offered ? There's official data to score the events off... Espn to be #1 Market share Jan 1, 2029 Yes +1000000.. No... Top 5.. Yes +100. No -120.

ESPN enters uncharted waters with Penn Entertainment in the form of 𝗘𝗦𝗣𝗡 𝗕𝗲𝘁 💸 After much resistance, ESPN has finally embraced the flourishing realm of sports betting, courtesy of a billion dollar partnership with Penn Entertainment. 🤝 The strategic alliance comes on the heels of Penn's recent move, where it divested its majority stake of Barstool Sports, which it had earlier acquired for a remarkable ~ $550 million, back to its founder, Dave Portnoy for seemingly $1! Penn has ensured its stake in Barstool's future by incorporating a non-compete and a clause stipulating a 50% share of future proceeds for any sale. Interestingly, Portnoy was quick to announce on X (earlier Twitter) that he would never sell the company and would hold it until he dies. Next step? The Barstool Sportsbook which never really took off under Penn's stewardship, will now be rebranded as 𝗘𝗦𝗣𝗡 𝗕𝗲𝘁. The new Sportsbook is poised to unveil its offerings across 16 U.S. states around the Thanksgiving date, midway into the Football season. 🏈 This licensing deal grants ESPN an infusion of $1.5 billion in cash over the next decade, complemented by $500 million worth of share warrants from Penn Entertainment. In return, Penn gains access to the unparalleled reach of ESPN's colossal customer base and an exclusive rights portfolio encompassing the globe's best sports leagues. 🌎 Amidst discussions surrounding the competitive landscape, Penn Entertainment's audacious stride into the duopoly shared by industry titans FanDuel and DraftKings Inc. becomes an engrossing case study. I can't wait to see what Penn and ESPN do to make this an interesting three-way battle of customer acquisition and retention. #SportsBetting #ESPNBet #GameChangers #ESPN #Penn #Barstool #Innovation #Partnership

JWS with excellent insight and Intel into the ESPN - PENN deal. To me at this stage of the game a ESPN - sports/gaming lifestyle b2b type deal such as this makes more sense and is a better Image match-up than the current and distancing relationship what ESPN has with Disney (but smartly appears to be moving away from). To my mind Disney is a damaged brand - many entertainment brands are but Disney is particularly embattled in my view. They picked the wrong political for in Ron DeSantis from Florida. College sports and the Daily Fantasy Sports sector is more "smash mouth" and "in your face" vibe, akin to MMA powerhouse the UFC. Is this PENN "tease" a deliberate market test of a rougher and more masculine version of ESPN without the mouse ears and political distractions of old? Is this at least part driven by Barstool Sports prior mega success in Daily Fantasy and sports betting news and services with attitude? This move and current vibe has caught my attention. We are open to affiliate b2b with ESPN and PENN, but not Disney these days - at least not with Disney s current political agendas and activism mindset and vibe). We like this ESPN - PENN paring and new handshake. Let's go. Bold and smart market mover Media Man says. #jws #johnwallstreet #espn #penn #sportsbiz #dailyfantasy #dfs #dailyfantasysports #sportsbetting #sportsbets #betonsports #sportsculture #sportsfans #sportsmedia #collegesports #sportsbroadcasting #sportsmarketing #b2b #b2c #merger #manda #culture #popculture #sportsculture #branding #image #market #marketmover #marketmovers #newsmedia #buzz #socialmedia #win #winwinwin #media

With yesterday's announcement of ESPN BET launching this fall, we wanted to get sports bettors' initial thoughts. We surveyed 1,000 people who regularly bet on sports in the U.S. to figure out if they plan to use ESPN BET, how big they think it can get, and more. Some key findings: – 54% plan to sign up for ESPN BET, 38% are unsure – 63% trust it more than other options because of the association with ESPN – 46% think ESPN BET will be the most popular sportsbook in 3 years Check it out here:

The ESPN/Penn deal ushers in a new era, already underway for quite some time, in sports media. Some viewers will express disdain toward recent industry developments, but the influence of sports betting companies on media brands is written in permanent ink. Money talks after all. Plus, many audiences strongly desire additional action in their sports viewership. It raises engagement. It bolsters time spent. And it significantly enhances overall interest, even in a random Hawaii football game kicking off at midnight EST. Yes, there's always the Hawaii game. Fantasy paved the way years ago. It was mocked for over a decade before flowing down the mainstream. The inundation of spreads/totals/props will, at first, turn some off, but eventually their infusion into game coverage will become comfortably familiar. No more tongue-in-cheek references need apply. Most exciting for voices like this balding blatherer, expect more content initiatives in short order. It's a glorious time for the business. Upward. Onward. #sportsbetting #sportsmedia #sportsbusiness

For quite a while now broadcasters have been talking about the need to share risk/ rewards and this potential idea of ESPN partnering with its biggest media rights partners would really help bring that concept closer to reality. HOWEVER, if they were to in fact partner with ESPN, the competitor landscape that drives US media rights deals to extreme heights every time the next negotiation windows come around would become a whole lot trickier to navigate. Would the big leagues seriously risk reducing the value of media rights? I could see that being a play in other markets but the US is a whole other ball game. Instead I would think a partner that can amplify ESPN's reach, distribution and monetisation would be a much better and likely fit. What do you think? https://lnkd.in/e8b_BEK8

The PENN Entertainment, Inc / ESPN / Barstool Sports agreement is one of the biggest sports business stories of the year. For the deal points: PENN Entertainment is selling 100% of Barstool Sports back to original founder Dave Portnoy for the following: - $1 (not a typo) - Non-competes with other sportsbooks/gambling opportunities - PENN has the right to 50% of the proceeds of any future sale or liquidity event of Barstool The Barstool Sportsbook, owned and operated by PENN in 16 states, will be rebranded as ESPN Bet and launch in the Fall in time for football season under a new licensing deal with ESPN. The agreement, which PENN and ESPN hailed as the “future of sports media and betting” in PENN’s SEC filing about the deal, breaks down like this: - PENN pays ESPN $1.5 billion over the next 10 years, and ESPN will have the option to purchase an additional $500 million of PENN stock via warrants that will vest over that same 10-year period - The goal is to reach “podium position” (third) in the US sports betting market and take a 20% market share. This is a pretty wild turn of events that came together rapidly and brings another well-capitalized player onto the board in an already crowded sports betting space. This week's Sports Business Playbook looks at the deal from the vantage points of the three companies' leaders: PENN's Jay Snowden, Disney's Bob Iger, and Barstool's Dave Portnoy. Check it out! 👇 https://lnkd.in/gP8rhJs5