Posted on: August 18, 2023, 03:51h.
Last updated on: August 18, 2023, 03:51h.
A Hamptons real estate controversy was sparked Thursday when the New York Post reported Barstool Sports founder David Portnoy dramatically cut the price of his mansion on Old Montauk Highway, implying he’s “desperate for cash.” Thing is Portnoy said his property in the tony East Long Island area isn’t for sale and never has been.
The Post cited unidentified sources on Wall Street that claim just two weeks prior to Penn Entertainment (NASDAQ: PENN) announcing its sports wagering deal with ESPN and the sale of Barstool Sports, Portnoy pared his asking price on the palatial property to $10.5 million, well below the original asking price of $13 million. Portnoy took to X, formerly Twitter, to clear things up.
Sweet article. However (checks notes). My Montauk house is not for sale and has never been for sale. Other than that this was a great read,” he wrote on the social media platform.
In a subsequent xeet (tweet), the Barstool boss noted that property being referenced by the Post, which features five bedrooms and five full bathrooms, is located at 225 Old Montauk Highway, but that’s not his house.
Portnoy Probably Doesn’t Have Money Problems
Until he confirms otherwise, it’s just speculation that Portnoy is dealing with financial problems. On paper, it’s unlikely.
He reacquired Barstool from Penn for just $1. Some analysts believe the media property is worth at least $600 million. Additionally, last week Penn registered 1.25 million shares that Portnoy can sell in the future. As of today’s close, those shares are worth $28.67 million.
Even if Portnoy were to sell those shares — he’s said he has no plans to dump any Penn stock over the near-term — he’d still have 226,800 shares left. That’s $5.2 million based on today’s closing price of $22.94.
A recent anecdote confirms Portnoy likely isn’t hurting for money. Last week, he shelled out $650,000 on a race horse.
Gaming Presence in the Hamptons
Portnoy isn’t the only Hamptons property owner involved in the sports wagering industry. Fanatics founder Michael Rubin recently doled out $50 million for a Hamptons mansion, using the property to host his celebrity-studded Fourth of July “White Party.”
New England Patriots owner Bob Kraft, who has invested in several sports wagering companies, owns a house near Rubin’s.
In 2022, the most expensive Hamptons real estate transaction was the $84.5 million sale of Ron Perelman’s East Hampton estate. Perelman previously was the largest individual shareholder in Scientific Games, which is now Light & Wonder (NASDAQ: LNW). He sold his $1 billion stake in the company in late 2020.