ESPN has drastically altered its approach to sports coverage in recent months, announcing major layoffs with high-profile staffers and replacing them with individual on-air talents. Now, the network is turning its attention to a new partnership with Penn National.
Penn National, which sold Barstool Sports baco to Barstool, announced this week that it had entered a partnership deal with ESPN for sports betting. Following years of reluctance to embrace sports betting by Disney, the company has now teamed up with Penn National on a deal that could shape the future of sports gambling and sports media.
However, negotiations between the two sides weren’t always smooth. While both sides are optimistic about the partnership and the future of ESPN Bet, contract talks proved to be challenging.
According to A.J. Perez, Eric Fisher and David Rumsey of Front Office Sports, ESPN originally didn’t want to partner with PENN. It wasn’t until the company’s top choices were off the table did the two sides begin negotiations. Even then, ESPN reportedly wanted $4 billion over 10 years.
Related: NFL TV ratings
The two sides ultimately agreed on a 10-year deal worth $2 billion. While it’s half the original asking price, $2 billion over the next decade is vital for a company that parted ways with 20 high-profile employees including Jeff Van Gundy, Bomani Jones and Jalen Rose.
Very few details have been released regarding ESPN Bet itself. However, the company’s primary goal is expanding its online reach and building a much stronger pool of users who will bet on the app rather than seeking a higher share of people betting at brick-and-mortar locations.
The introduction of sports betting to ESPN, which reports news, has also been a discussion point. According to Front Office Sports, there’s currently no existing internal policy that bans employees from betting on sports games, but it is reportedly under consideration, especially for insiders like Adrian Wojnarowski and Adam Schefter.