STUART: PEN ENTERTAINMENT
ANNOUNCED ITS FULL TAKEOVER OF
BARSTOOL SPORTS, GOING TO PAY
387 MILLION BUCKS, PEN WILL BE
IN FULL CONTROL BY FEBRUARY OF
NEXT YEAR.
NOW, LOOK WHOSE HERE, BARSTOOL
SPORTS GUY, DAVE PORTNOY, THE
MAN HIMSELF.
DAVE?
I DON’T KNOW HOW MUCH OF THIS
YOU’RE GOING TO GET BUT I
TAKE IT YOU ARE NOW AN EXTREMELY
WEALTHY GUY.
JUST TAKING ANOTHER COUPLE
HUNDRED MILLION.
WHAT ARE YOU GOING TO DO WITH
THE MONEY?
>> WELL, FIRST THING I’M GOING
TO DO IS I’VE GOT TO MAKE SURE I
GET THE HELL OUT OF NEW YORK,
RIGHT, AND GET DOWN TO FLORIDA
AND ESTABLISH SOME RESIDENCY SO
THEY CAN’T STEAL ALL MY MONEY,
SO THAT’S ONE.
GOING TO GET MY DUCKS IN A ROW
FOR THAT, STUART BECAUSE I ONE
HAVE MUCH LEFT AFTER THAT THIS
WEEKEND I’M GOING TO SARATO
GA ON WITH SOME BUDDIES
AND BET ON HORSES SO I’LL LIVE
THE SAME LIFE I’VE ALWAYS DONE.
STUART: I MEAN, YOU CAN’T,
EXTRAVAGANT LIFESTYLE, YOU CAN
PUT SOME IN CRYPTOS, BUY SOME
STOCK, WHAT ARE YOU GOING TO DO?
>> WELL, I STILL HAVE CRYPTO, I
HAVE BITCOIN, I GOT BACK IN AT
36, SO I’M TAKING A BEATING
THERE, BUT MY NET WORTH IS STILL
ALL TIED REALLY INTO PENN.
I HAVE A TON OF PENN STOCK AND
ITS BEEN A ROUGH LITTLE RIDE FOR
THE LAST YEAR, STARTED OUT
WELL BUT WE’VE GOT A LOT OF
WORK TO DO SO THE MORE PENN GOES
UP THAT’S MY INVESTMENT.
THE OTHER STUFF IS FUN AND GAMES
BUT PENN IS WHERE MOST OF MY NET
WORTH IS TIED UP AND IF WE CAN
TAKE THIS THING TO THE MOON THEN
I’LL BE ABLE TO DO WHATEVER I
WANT BUT IT’S ALL PENN.
THAT’S WHAT I’M FOCUSED ON.
STUART: BUT WHAT YOU DO IS WHAT
WEALTHY PEOPLE DO IS THEY BORROW
AGAINST THEIR HOLDINGS IN A
COMPANY.
YOU DON’T ACTUALLY SPEND MONEY.
YOU BORROW IT AGAINST YOUR PENN
ENTERTAINMENT HOLDINGS, AND
THEN YOU SPEND IT.
SO YOU DON’T PAY CAPITAL GAINS
TAX.
THAT’S WHAT YOU’RE GOING TO DO,
RIGHT?
>> LISTEN, STUART.
WHEN I GOT ALL THIS MONEY, THE
FIRST THING I DID TO MY TAX
GUY IS I SAID I WANT EVERY TRICK
THAT THESE RICH PEOPLE HAVE.
IF I HAVE TO HAVE MONEY IN THE
CAYMAN’S OFFSHORE, ALL YOU
HEAR ABOUT THESE TRICKS, MY TAX
GUY SAID THE TRICK IS YOU HAVE
TO PAY 15% SO I DON’T KNOW WHERE
ALL THESE TRICKS ARE COMING FROM
BUT I DON’T HAVE THEM AND I’M
PAYING OUT THE GUTS FOR THEM SO
IF YOU KNOW ANY LITTLE INSIDE
TRICKS ON HOW TO GET AROUND
TAXES LEGALLY I’M ALL EARS BUT I
PAY 15% I FEEL LIKE AN IDIOT.
STUART: [LAUGHTER]
BUT THAT SURELY IS BENEATH YOUR
FAIR SHARE, A MAN WHOSE AS
WEALTHY AS THAT.
WHAT DO YOU THINK SHOULD BE A
FAIR SHARE THAT THE TAX MAN
TAKES OUT OF YOUR INCOME?
>> YOU KNOW, I’M HAPPY TO PAY
30, 40, BUT HERE’S MY ISSUE.
IT’S NOT EVEN SO MUCH THAT IT’S
50%.
I JUST THINK THE GOVERNMENT IS
SO WASTEFUL, YOU’RE LIGHTING
HALF OF IT ON FIRE.
THERE’S CERTAINLY THINGS WE NEED
AS A COUNTRY THAT YOU GOT TO PAY
TAXES FOR AND AGAIN I’M HAPPY TO
DO THAT.
I JUST DON’T TRUST THE
GOVERNMENT THAT THEY USE THE
MONEY PROPERLY.
THAT’S THE BIGGER ISSUE SO IT’S
NOT SO MUCH HOW MUCH THEY TAKE
BUT I REALLY FEEL LIKE I’M JUST
TAKING IT AND LIGHTING IT ON
FIRE WHEN I GIVE IT ALL TO THEM.
STUART: LET’S TALK MEME STOCKS
FOR A MINUTE.
WHAT DO YOU MAKE OF RYAN COHEN
DUMPING ALL OF THIS BED, BATH
AND BEYOND STOCK YESTERDAY
AFTERNOON LEAVING THE LITTLE GUY
HOLDING THE BAG.
WHAT DO YOU THINK ABOUT THAT?
>> I DON’T LIKE THAT, BUT I
MEAN, ALL THE STOCK MARKET IS A
GAME.
THE MEME STOCKS ARE A GAME.
THE BIG FIRMS ARE A GAME,
EVERYONE IS PULLING LEVERS AND
DOING WHATEVER THEY CAN, BUT YES
, ANY TIME THE LITTLE GUY
GETS STUCK HOLDING THE BAG YOU
FEEL AWFUL FOR THEM AND THAT’S
WHAT HAPPENED IN THE WHOLE MEME
STOCK MOVEMENT WHEN THEY STOPPED
THE TRADING AND WHENEVER THESE
PEOPLE COME TO JUSTICE FOR IT
WHO KNOWS.
I’D BE SURPRISED IF THEY GET
ANYTHING MORE THAN A SLAP ON
THE WRIST.
STUART: I’LL TAKE ISSUE WITH YOU
ON THE STOCK MARKET BEING JUST A
GAME.
I DON’T THINK IT IS.
IT WASN’T A GAME WHEN YOU WORKED
WITH PENN NATIONAL.
YOU DID YOUR HOMEWORK, YOU
FIGURED OUT THAT COMPANY.
IS IT GOOD, BAD, SIDEWAYS
WHERE’S IT GOING?
YOU HAD SOME JUDGMENT ON IT.
IT WASN’T A GAME.
>> WELL, FOR THAT THOUGH,
YOU’RE USING AN EXAMPLE OF
SOMEBODY WHOSE DIRECTLY INVOLVED
, AND YES, I DID ALL OF
THE RESEARCH WITH PENN, AND I’M
PART OF THAT COMPANY BUT EVEN
STILL, STUART, IF YOU LOOK AT
THE PENN STOCK IT TRADES WITH
THE REST OF THE GAMBLING STOCKS
ALMOST LOCKSTEP FROM THE PAST
YEAR, YEAR AND A HALF.
WE DON’T OPERATE LIKE THOSE GUYS
THOSE GUYS ARE SPENDING BILLIONS
OF DOLLARS ON ADVERTISING AND
LITERALLY BURNING MONEY ANDZ
LOWER CLASSING HUNDREDS OF
MILLIONS OF DOLLARS AND WE TRADE
EXACTLY LIKE THEM AND THERE’S NO
ACTUAL DIFFERENTIATION OR
PEOPLE LOOKING AT THE WAY THE
COMPANIES OPERATE
DIFFERENTLY.
I’M NOT SAYING IT FOR EVERYBODY
BUT I DO MEAN THAT WHEN OLDER
INVESTORS LECTURE THE NEWER
INVESTORS, ON HOW THEY GET TO
TAKE IT SERIOUSLY AND THE ANTI-
MEME STOCK, EVERYONE’S
IN IT TO MAKE MONEY, EVERYBODIES
USING EVERY ADVENT AGE THEY CAN,
I DON’T THINK SOME PEOPLE SAY
YOU’RE TRADING UNFAIRLY OR
FAIRLY.
STUART: IT’S A QUESTION OF
GAMBLING VERSUS INVESTING.
I THINK YOUNG RETAIL INVESTORS
HAVE BEEN GIVEN A TERRIBLE
EXAMPLE OF THESE MEME STOCKS.
THIS IS NOT HOW YOU MAKE MONEY
IN THE LONG TERM.
IT’S NOT HOW YOU GET RICH IN THE
LONG TERM.
THEY’RE GAMBLING, NOT INVESTING.
OKAY, TAKE ME UP ON IT.
>> SO BUT WHAT WOULD YOU SAY
ABOUT THE COMPANIES THAT WERE
DOING ALL OF THIS SHORTING AND
THEN GOT CAUGHT RED HANDED WHEN
THE MEME STOCK MOVED?
THEY WERE JUST GAMBLING THE
OTHER WAY BUT SOMEHOW, THE
STOCK MARKET STOPPED TO SAVE
THESE PEOPLE WHEN THEY PLACED
THEIR BAD BETS.
THAT’S THE PROBLEM I HAVE WITH
IT.
EVERYBODY, WHAT’S THE DIFFERENCE
BETWEEN SHORTING THE STOCK AND
THE MEME STOCK MOVEMENT?
STUART: YOU’RE SHORTING A STOCK,
YOU ARE EXPECTING THE STOCK TO
GO DOWN, YOU’VE DONE YOUR DUE
DILIGENCE ON THAT COMPANY.
>> IT’S A GAMBLE.
STUART: EVERYTHING IS A FORM OF
GAMBLING BUT THERE’S A HUGE
DIFFERENCE BETWEEN INVESTING,
JUDGMENT, AND ROLLING THE DICE,
GAMBLING MEME STOCKS.
THERE’S A DIFFERENCE, AND IF YOU
--
>> BUT IT’S A GAMBLE --
STUART: BY PULLING THE LEVER ON
THE SLOT MACHINE THAT’S A ROTTEN
LESSEN.
>> BUT STUART IS IT A GAMBLE?
IF YOU’RE PART OF THIS WALL
STREET BETS AND YOU THINK YOU
HAVE THIS ARMY OF PEOPLE WHO CAN
MANIPULATE THE STOCK PRICE,
THAT’S NOT GAMBLING.
THAT’S NO DIFFERENT THAN ALL
THESE ALGORITHMS THAT ALL THESE
PEOPLE HAVE MADE A TON OF MONEY
ON.
THEY’RE USING ALGORITHMS.
THEY AREN’T NECESSARILY DOING
RESEARCH.
THEY ARE USING MATH AND
TECHNOLOGY TO ALTER THE STOCK
MARKET.
STUART: YOU TELL THAT TO ALL
THOSE BED BATH BED, BATH AND
BEYOND INVESTORS THE LITTLE
RETAIL GUYS WHO BOUGHT EARLIER
THIS WEEK AND ARE NOW LEFT
HOLDING THE BAG.
YOU TELL THEM THAT.
LAST 30 SECONDS TO YOU.
>> TO ME, WELL, I FEEL BAD FOR
THOSE INVESTORS.
I HAVEN’T BEEN PAYING OVERLY
ATTENTION TO THE BED, BATH AND
BEYOND THINGS SO KIND OF GOT ME
ON SKATES A LITTLE BIT ON THIS
ONE AND I ALWAYS ROOT FOR
THE LITTLE GUY.
MY POINT IS, I FUNDAMENTALLY
DISAGREE WITH THE LECTURE FROM
OLDER INVESTORS THAT THIS IS
INVESTMENT AND YOU HAVE RETAIL
AND DUE DILIGENCE, NO.
THERE’S ALL SORTS OF ALGORITHMS,
MATH, THEY SELL, THEY PROGRAM
AND SELL ON DIFFERENT TRADE.
THEY HAVE INFORMATION TO TRADE
FLOW.
THIS IS JUST THE WORLD’S BIGGEST
ROULETTE WHEEL IS WHAT BASICALLY
THE STOCK MARKET IS, AND PEOPLE
GOT MAD WHEN THE RETAIL TRADERS
GOT THE HAMMER FOR ONCE.
STUART: GOTTA GO.
YOU KNOW THESE HARD BREAKS COME
UP BUT DAVE, THAT WAS VERY
INTERESTING.
WE APPRECIATE YOUR POINT OF VIEW