Fanatics, Inc.

Fanatics, Inc. is an American online manufacturer and retailer of licensed sportswear, sports collectibles, NFTs, trading cards, and sports merchandise, as well as sports betting and iGaming. The company began as an American online retailer of licensed sportswear and merchandise, which operates the e-commerce businesses of major professional sports leagues and media brands, as well as hundreds of collegiate and professional team properties.

Fanatics, Inc.

Type	Private
Industry	Textile, E-commerce, trading cards and collectibles, digital collectibles/NFTs, sports betting and iGaming
Founded	Jacksonville, Florida, 2011 (2011)
Founder	Alan Trager, Mitch Trager (Football Fanatics, 1995) Michael Rubin (Fanatics, Inc., 2011)
Headquarters	Jacksonville, Florida New York, New York Manchester, UK
Area served	Worldwide
Key people	Michael Rubin, CEO Doug Mack, Vice Chairman & Fanatics Commerce CEO Glenn H. Schiffman, EVP & CFO Tucker Kain, Chief Strategy & Growth Officer
Products	Licensed sports apparel, trading cards, digital collectibles/NFTs
Brands	Fanatics Mitchell & Ness^[1] WinCraft Top of the World Majestic Topps FansEdge Kitbag
Revenue	$3.4 billion (2021)^[2]
Owner	Michael Rubin
Number of employees	8,000
Subsidiaries	Candy Digital by Fanatics,^[3]^[4] Fanatics Collectibles,^[5]^[6]^[7] Fanatics Betting & Gaming ^[8]
Website	fanaticsinc.com

History

Michael G. Rubin is the CEO of Fanatics.^[9] In 1998, Rubin created an apparel and logistics company, Global Sports Incorporated, which would later turn into GSI Commerce, a multibillion-dollar e-commerce company.^[10]> In 2011, Rubin acquired Fanatics from its founders, brothers Alan and Mitchell Trager; the Florida-based sports retailer had an e-commerce presence across college and professional teams, and the new assets merged into GSI.^[11] Rubin sold GSI to eBay later that year for $2.4 billion and bought back the sports e-commerce business, which included online stores for all North American sports leagues along with hundreds of teams and colleges, keeping the name Fanatics, Inc for the new company moving forward.^[12]

Post-merger

In April 2012, Fanatics raised $150 million from Insight Venture Partners and Andreessen Horowitz and acquired its Florida-based rival Dreams, Inc. for $158 million in cash and $25 million in debt.^[13] This move added the brands Fans Edge and Mounted Memories, which was rebranded as Fanatics Authentic division.^[14]

Rubin’s vision was to differentiate Fanatics by serving the real-time expectations of global sports fans and partners.^[15][16] In 2014, Doug Mack was appointed CEO and Fanatics opened a Bay Area office to tap into the Silicon Valley tech talent pool.^[17][18] Mack helped Fanatics move from a domestic e-commerce business to a mobile-first, direct-to-consumer brand with its own manufacturing capabilities.^[19][20] Priorities such as real-time manufacturing, data, and technology, would guide the company’s innovative vertical commerce (v-commerce) model.^[21][22]

In 2015, Fanatics raised $300 million from Silver Lake Partners and in early 2016 the company acquired UK-based internet retailer Kitbag to accelerate focus around international expansion and global soccer.^[23][24]

In April 2017, Fanatics bought sportswear and merchandise manufacturer and MLB uniform provider Majestic Athletic from VF Corporation in an effort to add to the company’s growing vertical manufacturing capabilities. Nike would eventually take over as MLB’s official on-field uniform partner, with Fanatics using the existing facilities acquired during the Majestic acquisition to now make Nike MLB uniforms.^[25]

In September 2017, Fanatics closed a $1 billion round of fundraising led by Softbank, with participation from the NFL, MLB, NHL, MLS and NFLPA. As of that year, Fanatics was expected to produce $2.2 billion in annual revenue.^[26] The next month, Fanatics acquired Fermata Partners to transform the college licensed sports business and a new Fanatics College division was formed.^[27]

In the following two years, Fanatics announced 10-year deals with Nike, the National Football League and Major League Baseball that granted Fanatics the rights to design, manufacture and distribute all Nike fan gear sold at retail for both leagues.^[28]

At the onset of the pandemic in early 2020, Fanatics and MLB halted production of MLB jerseys to manufacture masks and gowns for emergency personnel battling COVID-19.^[29] Using the exact same material that was previously used to make Yankees, Red Sox, Phillies and all other MLB jerseys, that fabric was instead used to make more than one million masks and gowns that were eventually shipped to more than a dozen states.^[30][31][32]

In April 2020, Michael Rubin—with the help of Fanatics employees around the world—launched the ALL IN Challenge, one of the largest digital fundraisers in history.^[33] The celebrity and athlete driven ALL IN Challenge exploded on social media and raised $60 million dollars to provide nearly 300 million meals for Feeding America, Meals on Wheels, No Kid Hungry, and World Central Kitchen.^[34][35][36] Also in 2020, Fanatics established the All-In Challenge Foundation, which will continue to serve as the philanthropic arm of the company.

In August 2020, the company secured $350 million Series E funding raising Fanatics’ valuation to $6.2 billion.^[37][38] Using the new funds, Fanatics purchased assets from Vetta Brands, including leading collegiate headwear producer Top of the World. This acquisition saved more than 200 jobs and added significant headwear scale and capabilities.^[39][40] In December 2020, Fanatics acquired WinCraft, the preeminent licensed hardgoods and promotional products company, which increased the company’s presence with non-apparel merchandise.^[41]

Global Digital Sports Platform (2021-Current Day)

In March 2021, Fanatics secured a $320 million funding round,^[42] followed by another $325 million in August 2021 that brought the company's valuation to $18 billion as of September 2021.[1] During the latter funding round, Fanatics also announced plans to evolve into a global digital sports platform through expansion into new verticals, including NFTs, trading cards, gambling and gaming, ticketing, media and more. With the move, Rubin assumed the new role of CEO of the larger Fanatics company, with Doug Mack remaining CEO of Fanatics Commerce and serving as Vice Chairman of the broader business.[1][3][4]

In May 2021, Rubin co-founded the digital collectibles company Candy Digital with Mike Novogratz and Gary Vaynerchuk. ^[43] Candy Digital secured an exclusive, long-term agreement with MLB as its first content partner.^[44] Later that year, Candy Digital received $100 million financing round, valuing the company at $1.5 billion. The round was led by Insight Partners and SoftBank Vision Fund2, and included NFL Hall of Famer Peyton Manning, Connect Ventures and Will Ventures.^[45]

In August 2021, Fanatics secured long-term Trading Cards manufacturing and distribution rights from MLB, MLBPA, NBA, NBPA and NFLPA,^{[46][47][48][49]} starting 2026.^[48][50] A month later, Fanatics Collectibles, Fanatics’ new trading cards and collectibles business, secured a $350 million Series A round at $10.4 billion valuation.^[51] Fanatics acquired Topps, the preeminent licensed trading card brand that has serviced collectors, fans and retailers for more than 70 years, in early 2022.^[52] As part of the deal, approximately 350 global Topps sports and entertainment employees joined Fanatics and the iconic brand will continue to operate under Fanatics Collectibles.

In February 2022, Fanatics, along with some of the biggest names in sports, entertainment and culture, acquired lifestyle and streetwear brand Mitchell & Ness from Juggernaut Capital Partners.^[53] Mitchell & Ness will continue to operate as a separate, distinct brand within the Fanatics Commerce division.^[54] In April 2022, Fanatics announced a $1.5 billion fundraising round which brought the company’s most recent valuation to $27 billion. More than half of the money raised came from strategic partners, including sports leagues, players’ associations, and team owners, with the single biggest investor being the NFL.^[55]

Sports leagues

NBA

In 2015, the NBA announced a multi-year partnership with Fanatics to operate its 25,000 sq ft flagship store in New York City.^[56] Since Fanatics also operates the online NBAStore.com, customers of the New York City store are able to browse and purchase from the entire online inventory through in-store handheld devices.^{[citation needed]}

NFL

In March 2016, the NFL and Fanatics agreed to a new long-term extension to operate NFLShop.com.^[57] The NFLPA also granted Fanatics the rights for player merchandise. Fanatics will replace Nike as the largest maker and seller of player merchandise starting in March 2017.^[58]

NASCAR

In 2015, Fanatics obtained a licence from NASCAR to sell the merchandise trackside at all 36 Monster Energy NASCAR Cup Series races and select NASCAR Xfinity Series races. This contract eliminated car owner and sponsor-owned merchandising haulers, which had previously sold mixed merchandise and limited edition items in favor of a singular "superstore" shopping area with one checkout zone for all merchandise, generally located outside one track entrance. It was initiated in August 2015 at the Pocono Raceway.^[59] By 2017 however, the plan was considered a failure due to limited merchandise and poor foot traffic, and it led to a decline in overall at-track merchandise sales.^[60] Larger tracks such as Daytona International Speedway utilized the first turn for merchandising, however, the majority of fans did not enter through this area as well as the many fans camping infield. Sponsors were unable to find places for drivers to initiate fan contact as they had previously in merchandise haulers for events such as autograph signings.^{[citation needed]}

Fanatics currently employs a "hybrid" system with a blend of haulers and smaller Fanatics tents (size/space varies per track). This allows Fanatics to reach more fans, especially once inside the gates and has reopened the door for NASCAR and driver sponsor interaction. Fanatics President Ross Tannenbaum indicated, "We've got all this money and all this product invested [in the tent] and it's sitting outside the gates where there is nobody coming [while the race is happening]. All those people are inside and at some point walking around or doing something and there's a very poor product offering. To have the best shopping experience, our goal would be to have a really strong offering of product out front like we have today but do a better job of having destination shopping inside the track."^[61] In July 2017, it was revealed that the drivers only get as little as 1 to 3 percent of the profits that Fanatics make while Fanatics make 75 percent of the profit. This has led drivers such as Kyle Larson and Ricky Stenhouse Jr. to be vocal and seek changes. On November 2, 2018, Fanatics announced they would no longer provide the trailers for the series as the series continues its decline, though Fanatics would continue with online sales until 2024.^[62]

NHL

In 2017, the National Hockey League partnered with Adidas and unveiled a new hockey jersey with Fanatics making the jerseys themselves as the new standard jersey for fans while Adidas manufactures the on-ice jerseys. Fanatics and Adidas also partnered up to make NHL hats in 2017, ending the 20 year New Era contract.^{[citation needed]}

MLB

In December 2015, MLB announced a merchandise deal that split the rights between Fanatics and Nike.

In August 2021, it was announced that Fanatics would take over the MLB baseball cards license from Topps after 2026. With the subsequent purchase of Topps by Fanatics in January 2022, the license began immediately.^[63]

MLS

MLS and Fanatics began their partnership in 2017.^{[citation needed]}

Formula 1

In 2020, Fanatics announced a partnership with Formula One for merchandise production and sales. The deal was extended in July 2021 after a surge in e-commerce sales.^[64]

Other ventures

In January 2015, Fanatics began selling a collection of casual womenswear designed by Ricki Noel Lander called Let Loose By RNL.^[65] In October 2019, Fanatics teamed up with sports broadcaster Erin Andrews on a line of clothing.^[66]

In 2017, Fanatics signed a manufacturing, design and e-commerce partnership with English association football club Aston Villa, a first for an English club.^[67] In 2022, this partnership was extended, after Aston Villa reported they had seen a 450% increase in e-commerce sales under this agreement.^[68] In July & August 2021, Fanatics struck a similar deal with Manchester United, Chelsea,^[69] Derby County^[70] and Everton.^[71]

In June 2020, Fanatics announced a ten-year licensing, manufacturing and e-commerce partnership with French soccer club Paris Saint-Germain.^[72] There are also partnerships with German clubs Schalke^[73] and Bayern Munich, as well as Spanish club Atlético Madrid.^[74]

Fanatics have licensing partnerships with the England national football team,^[75] the Canada men's national soccer team^[76] and the England national rugby union team.^[77]

References

1. "Michael Rubin's Fanatics, Jay-Z, Meek Mill, Lil Baby, and More Acquire Mitchell & Ness for $250 Million". Complex Networks.
2. "Fanatics Valued at $18 Billion as Jay-Z, Boehly's Eldridge Invest".
3. "Fanatics' NFT company is worth $1.5 billion, and NFL legend Peyton Manning now owns a stake". CNBC. 21 October 2021.
4. "Candy Digital Launches MLB Secondary Marketplace". 19 January 2022.
5. Bhasin, Kim (8 March 2022). "Fanatics Sets Plan for Trading-Card Business, Starts New Brand". Bloomberg. Retrieved 14 April 2022.
6. "Fanatics Collectibles".
7. "Fanatics acquires Topps trading cards for $500 million". CNBC. 4 January 2022.
8. "Fanatics Betting and Gaming".
9. Bobrowski, Meghan (10 August 2021). "Fanatics Valuation Rises to $18 Billion as It Plans to Expand Sports Offerings". Wall Street Journal. Retrieved 2022-07-06.
10. Liberman, Noah (2001-11-05). "Michael Rubin profile". sportsbusinessjournal. Retrieved 2022-07-06.
11. Colao, J.J. (2012-11-18). "Newly-Minted Billionaire Is Spinning eBay Scraps Into Gold". Forbes.
12. DiStefano, Joseph (2011-09-12). "Facebook, Zynga, Groupon ... and Philly's Kynetic". The Philadelphia Inquirer.
13. Associated Press (2012-08-16). "Fanatics buying Dreams for about $158 million". Yahoo! News.
14. Bensinger, Greg (2013-06-06). "Score! Web Sports Retailer Fanatics Inc.Tops $3 Billion Valuation". The Wall Street Journal.
15. Colao, J.J. (2012-11-18). "Newly-Minted Billionaire Is Spinning eBay Scraps Into Gold". Forbes
16. DiStefano, Joseph (2011-09-12). "Facebook, Zynga, Groupon ... and Philly's Kynetic". The Philadelphia Inquirer.
17. Bensinger, Greg (2014-08-09). "Sports Apparel Purveyor Fanatics Swipes One Kings Lane Chief". The Wall Street Journal.
18. Donato-Weinstein, Nathan (2016-05-04). "Why the world's largest licensed sports merchandise retailer is moving hundreds of jobs to San Mateo". Silicon Valley Business Journal.
19. Snyder, Benjamin (2014-12-03). "For online sports retailer Fanatics, the holidays are its Super Bowl". Fortune.
20. Palmieri, Jean and Clark, Evan (2021-07-21). "CEO Talks: Doug Mack on Fanatics’ Fast Rise". WWD.
21. Palmieri, Jean and Clark, Evan (2021-07-21). "CEO Talks: Doug Mack on Fanatics’ Fast Rise". WWD.
22. 2019 Disruptor 50 list (2019-05-15), "25. Fanatics". CNBC.
23. Primack, Dan (2015-08-25). "Exclusive: Fanatics raises $300 million from Silver Lake". Fortune.
24. Del Rey, Jason (2016-02-02). "Fanatics Buys European Online Sports Retailer for $17 Million in Big Soccer Push". Vox.
25. Dixon, Drew (2017, 04-05) "Jacksonville’s Fanatics Inc. to acquire Majestic sports apparel company”. Jacksonville.com.
26. Loizos, Connie (2017-09-06). "Given an assist, sports e-commerce giant Fanatics closes that $1 billion round led by SoftBank". TechCrunch.
27. Long, Michael (2017-10-16). "Fanatics creates college division after Fermata Partners acquisition". Sports Pro Media.
28. "The N.F.L. and Nike Make Room for Fanatics". The New York Times. 2018-05-23. Retrieved 2022-07-05.
29. "The dynamic career and life of Michael Rubin — billionaire team partner, friend of high-profile rappers, and criminal-justice reform advocate". Business Insider. 2021-04-21. Retrieved 2022-07-05.
30. "Coronavirus: MLB jersey provider Fanatics creating masks and gowns for medical workers".
31. Castrovince, Anthony (2020-04-23). "15,000 masks donated to Cleveland Clinic". MLB.com. Retrieved 2022-07-06.
32. "MLB Officially Partners With Nike And Fanatics; Nike To Be Official Uniform And Footwear Provider". Forbes. 2019-01-25. Retrieved 2022-07-05.
33. "The dynamic career and life of Michael Rubin — billionaire team partner, friend of high-profile rappers, and criminal-justice reform advocate". Business Insider. 2021-04-21. Retrieved 2022-07-05.
34. Lee, Michael (2020-04-20). "Brotherly Love: How a Sixers co-partner is getting stars of all kinds to pitch in". The Athletic. Retrieved 2022-07-06.
35. Beer, Jeff (2020-05-18). "How Fanatics' All In Challenge became the wildest $50 million celebrity charity contest ever". Fast Company. Retrieved 2022-07-06.
36. Kane, Dr. Gerald C (2021-06-25). "In Pandemic Pivot, Fanatics Reinvents the Playbook". The Wall Street Journal. Retrieved 2022-07-06.
37. young, jabari (2020-08-13). "Michael Rubin's Fanatics now valued at $6.2 billion after latest Series E funding round". CNBC. Retrieved 2022-07-06.
38. Herrera, Sebastian (2020-08-13). "Web Retailer Fanatics Raises $350 Million Amid Rebound in IPO Market". WSJ. Retrieved 2022-07-06.
39. Palmieri, Jean (2020-09-08). "Fanatics Acquires Assets of Top of the World Headwear Company". Yahoo!. Retrieved 2022-07-06.
40. Novy-Williams, Eben (2020-09-07). "FANATICS EXPANDS HEADWEAR BUSINESS WITH ACQUISITION OF VETTA BRANDS ASSETS". Sportico. Retrieved 2022-07-06.
41. young, jabari (2020-12-07). "Fanatics acquires WinCraft, a company that makes sports-themed merchandise". CNBC. Retrieved 2022-07-06.
42. young, jabari (2021-03-24). "Fanatics valuation doubles to $12.8 billion after a new funding round". CNBC. Retrieved 2022-07-06.
43. Novy-Williams, Eben (2021-06-01). "FANATICS LAUNCHES NFT FIRM CANDY DIGITAL WITH NOVOGRATZ, VAYNERCHUK". Sportico. Retrieved 2022-07-06.
44. young, jabari (2021-06-01). "MLB launches into NFT space with help from Lou Gehrig and new company led by Fanatics". CNBC. Retrieved 2022-07-06.
45. young, jabari (2021-10-21). "Fanatics' NFT company is worth $1.5 billion, and NFL legend Peyton Manning now owns a stake". CNBC. Retrieved 2022-07-06.
46. Young, Jabari (2021-08-19). "MLB will end 70-year deal with trading card company Topps". CNBC. Retrieved 2022-01-04.
47. Young, Jabari (2022-01-04). "Fanatics acquires Topps trading cards for $500 million". CNBC. Retrieved 2022-01-04.
48. Beer, Tommy. "Report: Fanatics Strikes Again, Set To Become Exclusive Licensee For NBA Trading Cards". Forbes. Retrieved 2022-01-04.
49. Munar, Julio Luis (2021-08-25). "Fanatics Takes NFL Cards From Panini To Complete Sole Control Of Big 3 Sports Cards". ClutchPoints. Retrieved 2022-01-04.
50. Young, Jabari (2021-08-19). "MLB will end 70-year deal with trading card company Topps". CNBC. Retrieved 2022-01-04.
51. Beaton, Andrew (2021-09-29). "Fanatics Trading Cards Valuation Rises to $10.4 Billion as New Firm Aims to Expand Its Reach". The Wall Street Journal.
52. Beaton, Andrew (2022-01-04). "Fanatics Pried Baseball Cards From Topps. Now Fanatics Is Buying Topps". The Wall Street Journal.
53. Hirsch, Lauren (2022-02-18). "Fanatics is buying Mitchell & Ness, a fellow sports merchandiser". The New York Times.
54. Cowen, Trace William (2022-02-18). "Michael Rubin's Fanatics, Jay-Z, Meek Mill, Lil Baby, and More Acquire Mitchell & Ness for $250 Million". Complex Networks.
55. Golden, Jessica (2022-04-06). "NFL, MLB and players unions lead the latest round of investment in rapidly growing Fanatics". CNBC.
56. "Conshohocken Company to Run NBA Flagship Store in NYC". More Than The Curve. 6 June 2015. Retrieved 13 May 2016.
57. "Fanatics Signs Long-Term Extension Of NFL Deal, Expanding Rights". Retrieved 13 May 2016.
58. . B2B E-Commerce World. Archived from the original on 14 May 2016. Retrieved 13 May 2016.
59. . NASCAR. Archived from the original on 2015-08-06. Retrieved 2019-10-24.
60. "Souvenir haulers may return to some NASCAR races as merchandise program evolves". NBCSports.com. 9 May 2017. Retrieved July 6, 2017.
61. "Revamped merchandise model will see more souvenir trailers at tracks". ESPN. May 9, 2017. Retrieved 2019-10-24.
62. "Fanatics to bring early end to its deal selling NASCAR merchandise". motorsport.com. Nov 2, 2018. Retrieved 2019-10-24.
63. Young, Jabari (2022-01-04). "Fanatics acquires Topps trading cards for $500 million". CNBC. Retrieved 2022-01-04.
64. "Formula One extends deal with Fanatics after surge in sales". CNBC. 2021-06-22. Retrieved 2022-06-10.
65. Fanatics website: "Let Loose by RNL is a Contemporary Women's Fanwear Line Designed by American Actress, Model and Designer Ricki Noel Lander" retrieved August 8, 2016
66. "Erin Andrews Designs Clothes for Fanatics". WWD. October 2, 2019.
67. "Aston Villa sign innovative kit deal with Fanatics and Luke 1977". SportsPro. 2018-04-23. Retrieved 2022-06-10.
68. "Villa extend Fanatics partnership". Aston Villa Football Club. 8 June 2022. Retrieved 2022-06-10.
69. "Chelsea Sign Fanatics For Improved Online Shopping Experience – fcbusiness". Retrieved 2022-06-10.
70. "Derby County And Fanatics Agree LongTerm Retail Partnership To Enhance Supporters Shopping Experience". www.dcfc.co.uk. Retrieved 2022-06-10.
71. Jones, Adam (2021-08-30). "Fanatics confirm Everton expansion and address Irish fan concerns". Liverpool Echo. Retrieved 2022-06-10.
72. Kochkodin, Brandon (June 30, 2020). "Paris Saint-Germain Signs 10-Year Merchandise Deal With Fanatics". Bloomberg. Retrieved June 30, 2020.
73. "Schalke 04 | Fanatics Licensing Management". Retrieved 2022-06-10.
74. "Club Atlético de Madrid - Atlético de Madrid, Fanatics renew agreement until 2025". Club Atlético de Madrid. Retrieved 2022-06-10.
75. "England Football". Fanatics Inc. Retrieved 2022-06-10.
76. "Canada Soccer and Fanatics Agree to Long-Term Retail Partnership to Enhance Fan Shopping Experience". Canada Soccer. 4 June 2021. Retrieved 2022-06-10.
77. "England Rugby". Fanatics Inc. Retrieved 2022-06-10.

External links

• Official website