ESPN’s foray into sports betting won’t come cheap for Penn, which has committed to paying roughly $2 billion in cash and equity over the 10-year partnership.
It also won’t come cheap for ESPN, which is in the process of terminating two integrated marketing deals with Caesars and DraftKings to clear up rights for ESPN Bet. Those two deals are worth nearly half of the annual $150 million cash payment that will ESPN will get from Penn, according to multiple people familiar with the terms.
On Tuesday, ESPN made its long-anticipated push into sports betting, announcing a decade-long licensing deal with Penn Entertainment that will see the Barstool Sportsbook rebranded as ESPN Bet later this year.
