By David Hamilton
You know ESPN the sports media giant. Now brace yourself for ESPN Bet, a rebranding of an existing sports-betting app owned by Penn Entertainment, which is paying $1.5 billion plus other considerations for exclusive rights to the ESPN name.
The deal, announced Tuesday, could take Walt Disney Co.-owned ESPN into uncharted waters. Disney is fiercely protective of its family-friendly image, not typically associated with the world of sports gambling.
Penn will operate ESPN Bet, which ESPN has agreed to promote across its online and broadcast platforms in order to generate "maximum fan awareness" of the app. ESPN Bet will also have unspecified "access" to ESPN talent, the companies said.
Penn's rights to the ESPN brand will initially run for a decade and can be extended for another decade by mutual agreement. In addition to the $1.5 billion licensing deal, which will be paid out over a decade, Penn will also grant ESPN rights worth about $500 million to purchase shares in Penn.
"Penn Entertainment is the perfect partner to build an unmatched user experience for sports betting with ESPN Bet," ESPN chairman Jimmy Pitaro said in a statement.
Disney has wrestled with the issue of adult-oriented entertainment in the past. Until about 15 years ago, its Walt Disney World park in Orlando, Florida, featured a gated late-night area known as Pleasure Island — actually a reference to the 1940 film "Pinocchio," whose characters visited a den of iniquity by that name. Pleasure Island featured bars, music venues and nightclubs in addition to restaurants, shopping and a nightly countdown to "New Year's Eve" complete with fireworks.
When attendance waned, Disney closed down the Pleasure Island nightclubs in 2008 and redeveloped the site as a restaurant and shopping district now known as The Landing at Disney Springs.
ESPN added that it will use its platforms "to educate sports fans on responsible gaming" — for instance by continuing to cover the sports betting industry with "journalistic integrity," creating a "responsible gaming" committee within the company and developing marketing guidelines that "safeguard" fans.
Penn also announced that it sold Barstool Sports, an irreverent sports media site, back to its founder Dave Portnoy. Penn took a 36% stake of Barstool Sports in February 2020 for about $163 million and subsequently acquired the remainder of the company for about $388 million in February 2023. Neither Penn nor Portnoy disclosed terms of the divestment deal.
In a video posted on X, the site formerly known as Twitter, Portnoy radiated excitement over the site's regained independence. The regulated gambling industry, he said, "was probably not the best place for Barstool Sports and the kind of content we make." Portnoy added that he will "never" sell the company. As part of the divestment deal, Penn would be owed 50% of the gross proceeds from any future sale or "monetization" of Barstool.
David Hamilton is an AP business writer.
Taylor Swift wins big and Rita Ora pays tribute to Liam Payne at the MTV EMAs
Taylor Swift came out on top at the 2024 MTV EMAs on Sunday, walking away with best artist, best U.S. act, best live act and best video for "Fortnight" (featuring Post Malone).
Swift, who is finishing up her Eras tour on the other side of the Atlantic, thanked the fans for the bounty of prizes via video message.
The U.K. show opened with an acrobatic Benson Boone suspended in the air on a gold grand piano performing his viral hit "Beautiful Things" and latest release "Slow it Down." Boone also accepted his first EMA for best new act.
South African newcomer Tyla gave Swift a run for her money picking up three awards for best afrobeats, best R&B and best African act.
Tyla performed her smash hit "Water" for the EMA audience at the Co-op Live, Manchester, flanked by a host of dancers, as well as singing energetic new track "Push 2 Start."
British singer Rita Ora, who hosted the show for a record third time, paid tribute to former One Direction star Liam Payne, who died last month after falling from a balcony in Buenos Aires.
Ora had a close relationship with the singer and the pair recorded a song together in 2018, "For You (Fifty Shades Freed)." She addressed the audience saying, "I want to take a moment to remember someone. Liam Payne was one of the kindest people I knew." Her voice broke as she asked the crowd to take a moment to remember Liam saying, "He had the biggest heart and he left such a mark on this world."
Hip-hop legend Busta Rhymes was awarded the EMAs global icon award from British rapper Little Simz telling the crowd that in 34 years of professionally recording this was his first award from MTV and it felt incredible. The 12-time Grammy Award nominee, who has more than 10 million album sales under... Read More