{"id":1583084,"date":"2024-06-04T09:24:11","date_gmt":"2024-06-04T13:24:11","guid":{"rendered":"https:\/\/sports7.us\/?p=1583084"},"modified":"2024-06-04T09:24:12","modified_gmt":"2024-06-04T13:24:12","slug":"penn-stock-investors-are-upset-with-ceo-jay-snowden-and-the-companys-sports-betting-spend","status":"publish","type":"post","link":"https:\/\/sports7.us\/news\/penn-stock-investors-are-upset-with-ceo-jay-snowden-and-the-companys-sports-betting-spend\/","title":{"rendered":"Penn stock investors are upset with CEO Jay Snowden and the company\u2019s sports betting spend"},"content":{"rendered":"<p><span style=\"font-weight: 400\">Last Friday, Penn Entertainment\u2019s stock jumped nearly 20%. That was after an investor letter aimed at CEO Jay Snowden for the company\u2019s online sports betting spend. On Friday morning, Donerail Group managing partner Will Wyatt addressed chairman David Handler and the rest of the board. He had this to say. <\/span><\/p>\n<blockquote><p><em>&#8220;<span style=\"font-weight: 400\">We believe that the significant criticism from the investment community regarding PENN\u2019s recent capital allocation is understandable, however,\u201d Wyatt said. \u201cAfter four years of effort, attention, and billions of dollars of shareholder capital invested, the company has been unable to disintermediate the online sports betting landscape, as it had forecast.\u201d<\/span><\/em><\/p><\/blockquote>\n<h2><b>Penn Entertainment is being faulted for spending billions on interactive <\/b><\/h2>\n<p><span style=\"font-weight: 400\">Will Wyatt\u2019s first example of Penn\u2019s failed investments includes their former partnership with Barstool Sports. He noted this demonstrated the \u201cfailure of this strategic initiative\u201d. Just weeks after Jay Snowden became CEO, he purchased 36% of Barstool Sports for $163 million. One year into their partnership, it was apparent that their digital gains were not what they projected. Despite that, Penn paid another $388 million to purchase the rest of Barstool. They now had full control.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">However, Penn ended up selling Barstool Sports back to Dave Portnoy for just $1. Penn had reached a deal with ESPN Bet. Their disinvestment cost nearly $1 billion in non-cash losses. Will Wyatt\u2019s next example was Penn\u2019s purchase of theScore in 2021. They spent another $2.1 million to make that possible. The integration of theScore failed and it did not lead to the $200 million promised in incremental adjusted EBITDA.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The final example used by Mr. Wyatt was notes on ESPN Bet. In the fourth quarter of 2023, ESPN Bet had an adjusted EBITDA loss of more than $300 million. Over the last five years, Penn\u2019s stock has been down (25.9%) with Jay Snowden as the company\u2019s CEO. Will Wyatt had this to say.<\/span><\/p>\n<blockquote><p><em>&#8220;<span style=\"font-weight: 400\">What may be additionally troubling for shareholders is that the operating losses that are growing meaningfully \u2013 and have become a central part of the PENN equity narrative \u2013 sit within an interactive business that currently has no operating leadership,\u201d Wyatt said. \u201cWhat gives this Board any confidence in PENN\u2019s future under this strategy?\u201d<\/span><\/em><\/p><\/blockquote>\n<p><span style=\"font-weight: 400\">On July 1, Aaron LeBerge will oversee the interactive division at Penn. Mr. LeBerge was formerly the chief technology officer at the Walt Disney Company. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last Friday, Penn Entertainment\u2019s stock jumped nearly 20%. That was after an investor letter aimed at CEO Jay Snowden for the company\u2019s online sports betting spend. On Friday morning, Donerail Group managing partner Will Wyatt addressed chairman David Handler and the rest of the board. He had this to say. &#8220;We believe that the significant [&hellip;]<\/p>\n","protected":false},"author":304,"featured_media":1583085,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[447316],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v22.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Penn stock investors are upset with CEO Jay Snowden<\/title>\n<meta name=\"description\" content=\"There\u2019s a ton of evidence stacked against Penn Entertainment for their failed sports betting spending with CEO Jay Snowden.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sports7.us\/news\/penn-stock-investors-are-upset-with-ceo-jay-snowden-and-the-companys-sports-betting-spend\/\" \/>\n<meta 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