Penn gaming didn't buy Barstool because of their NLI deals (NLI wasn't a thing when they purchased Barstool) they bought them because of their built-in engaged user-base and tapping this base for legalized sports gambling. Point to me one podcast, blog, documentary, T-shirt, or some piece of content that Travis Hunter has endorsed or marketed for Barstool that they've monetized. I'm genuinely curious because if you're paying a guy 6/7 figures I would at least expect to see 1 thing that associates him with the brand. This article is outdated, so TFWIW but it seems to imply he didn't have a deal with Barstool:
https://sports.yahoo.com/source-travis-hunter-does-not-005654316.html
You missed the point by a country mile.
Yes, there are "direct" methods for monetizing. Selling a t-shirt is a direct method. Print a t-shirt with a kid's name and Barstool's name, and then sell it.
BUT THAT'S NOT WHAT I'M TALKING ABOUT.
I am talking about the general concept of enhancing your overall brand, to the point where the value of the business is MORE THAN the revenue on the P&L. That's when buyers OVERPAY for a company (relative to earnings). Goodwill and Going Concern Value. I've seen it dozens of times over 25 years of working in the corporate world.
And, again, this is not just "built-in engaged user-base" for Penn Gaming (and I've worked with Penn Gaming before, so I know their business). If "builit-in engaged user-base" was the sole purpose, Penn Gaming could just license it. Let Barstool keep being Barstool, and just do a joint venture where Penn markets to Barstool's mailing list.
But a full-blown acquisition goes beyond that. It is an attempt to procure the "cool factor" associated with Barstool. Which is tied into Barstool being a "rogue badass" website. As just an example, Barstool LOVES the uncertainty and vagueness associated with GUESSING whether (and how much) they are paying Hunter and McClain and anyone else.
So what I was ACTUALLY talking about is the way a company "monetizes" a situation by making the COMPANY more valuable in an indirect sense. What was Barstool known for BEFORE Travis Hunter and Cormani McClain? A guy stuffing his face with pizza? But how are we talking about them NOW? Obviously, whether anyone is 100% accurate or not, we are talking about Barstool being a Corporate Baba Yaga that is funding Neon Deion and Travis Hunter and Cormani McClain.
The bottom line is simple. If a guy like Portnoy thinks "hey, what kind of return can I expect if I pay a million or two to Travis Hunter", he is lookig at it NOT JUST as direct return on investment (t-shirts, ads, etc.), but also as a MULTIPLIED return on investment that comes from the value of his company going up in an acquisition. That's all. And that's different from John Ruiz, who is NOT looking to sell LifeWallet.