Barstool Sports has sued Omega Accounting Solutions and O’Brien Sales & Marketing for breach of contract, accusing the California companies of failing to pay for advertising and sponsorships.
The complaint was authored by attorney David C. Berg and filed in the Southern District of New York on Wednesday.
Barstool says it signed a media buy and sponsorship agreement with Omega in 2022, with O’Brien acting as Omega’s advertising agency, and Omega payed Barstool $300,000 as part of the deal. That contract was apparently successful, as the companies soon negotiated a second, much larger, deal worth $6 million, with Omega agreeing to pay four quarterly payments of $1.5 million.
As part of the $6 million contract, Omega is described as becoming an exclusive partner with Barstool and sponsoring Barstool’s live shows. Those shows included the Barstool Sports Arizona Bowl played on Dec. 30, 2022 and Barstool’s Rough N’ Rowdy amateur boxing contests, along with programming related to the 2023 Super Bowl and 2023 March Madness. The complaint also references Omega’s featured placement on Pardon My Take episodes.
The complaint notes that Omega promoted its relationship with Barstool on its website. Omega “prominently” featured Barstool’s logo, with the moniker “AS SEEN ON” emphasized. Omega also highlights Barstool founder and owner Dave Portnoy.
Not only was Omega featured by Barstool, the complaint charges, but Barstool “went above and beyond its obligations” by specifically promoting Omega’s CEO, Jay Woods. Barstool’s then-CEO Erika Ayers Badan invited Woods to appear as a guest on an episode of Barstool’s Token CEO podcast. During the interview, Woods described his company’s services and Omega wrote an article on its website highlighting the interview.
“It was one of the first times … if not the first time,” the complaint said, “that Barstool had a representative of an advertiser as a guest on one of its podcasts.”
Barstool contends it “performed all of its obligations” in the contract but that the defendants have paid only a portion of what they allegedly owe. Barstool says it sent O’Brien, as Omega’s advertising agency, invoices totaling about $4.7 million for services rendered between September 2022 and December 2022.
The complaint says O’Brien wired Omega $1.8 million in February 2023, with O’Brien expected to pay Barstool $1.5 million and O’Brien expected to be paid a roughly $265,000 commission. Barstool says O’Brien paid Barstool about $426,000 and still owes $1.08 million. As for Omega, it allegedly owes Barstool $3.2 million or $4.4 million, depending on whether the amount is tied to the contract or purported value of the services.
Attorneys for Omega and O’Brien will answer the complaint in the coming weeks and deny the allegations. There are a range of potential defenses, including an argument that Barstool breached the contract—perhaps there’s a dispute over services rendered—or that the companies paid what they owed based on their interpretation of the relationship.
The case has been assigned to U.S. District Judge Alvin K. Hellerstein. The 91-year-old judge has been the judge in a number of noteworthy cases, including civil litigation brought by sexual assault victims against disgraced film producer and convicted felon Harvey Weinstein.