Dave Portnoy is a provocateur and a showman so this may just be a case of negotiating through the media, but the Barstool Founder says his brand is “99.9% out of Sirius.” He took to Twitter on Tuesday to say that negotiations between the two sides have not been productive.
The feeling seems to be mutual according to Awful Announcing. Andrew Bucholtz writes that he has “heard from a SiriusXM source that their side also sees the deal likely ending rather than being renewed.”
Barstool launched its SiriusXM channel in January of 2017. Back then, it made total sense for the brand to have a presence on the sat-caster. Now though, Barstool may have simply outgrown its need for a radio platform of any kind.
With Penn National Gaming buying a significant stake in Barstool and giving the company a $450 million valuation, it isn’t hard to imagine that radio is the least of Portnoy’s concerns. Also, there may not be a need for the company to pursue deals that require it to provide content to a third party. Between the investment and branding opportunities, Penn National injected enough cash to sustain and help Barstool grow.
As for SiriusXM, the company has been hit hard in the stock market. Bloomberg reported that it is still willing to spend money on top tier talent like Howard Stern, but with negotiations reaching the $120 million per year range and revenue being down, it is possible that some contracts expiring in the near future, like Barstool’s, simply are not a priority.
