- Multiple NFL figures attend Fanatics CEO Michael Rubin’s July 4 party NBC Sports
- Tom Brady Says He ‘Definitely Needed ALOT of Electrolytes’ After Star-Studded Fourth of July Party Yahoo Entertainment
- Why Grant Williams went viral after Michael Rubin’s star-studded July Fourth white party Knoxville News Sentinel
- Tom Brady, Damar Hamlin, James Harden & more attend all-white Fourth of July extravaganza USA TODAY
- “Tom Brady Look the Youngest”: Fans Go Berserk as 33-YO James Harden and Devin Booker Have a Rager With NFL GOAT to Celebrate America EssentiallySports
- View Full Coverage on Google News
Tag Archives: Fanatics
Fanatics’ $150 million deal for PointsBet reflects industry ‘growing up’ – Yahoo Finance
- Fanatics’ $150 million deal for PointsBet reflects industry ‘growing up’ Yahoo Finance
- Fanatics set to acquire Pointsbet’s U.S. sports betting operations in $150 million deal Yahoo Finance
- Fanatics acquiring PointsBet U.S. for $150 million: What it means for the sports gambling landscape The Athletic
- Fanatics Acquires PointsBet’s U.S. Business, Marking Its Official Foray Into Sports Betting The Action Network
- Fanatics to acquire U.S. business of PointsBet as it aims to grow sports betting operation The Philadelphia Inquirer
- View Full Coverage on Google News
Fanatics in talks to acquire BetParx sportsbook
New York, NY. – December 7th. Portrait for a profile on Fanatics founder & CEO Michael Rubin at his office in downtown NYC.
The Washington Post | Getty Images
Fanatics is in discussions to acquire the BetParx sportsbook, as the sports merchandising company looks to take a bigger position in sports betting, according to people familiar with the matter.
A deal hasn’t been reached, although Fanatics signed a letter of intent to buy the sportsbook, said the people, who weren’t authorized to speak publicly on the matter. A deal price couldn’t yet be learned, and the discussions may not result in an agreement, the people added.
Representatives for Fanatics and BetParx declined to comment.
The BetParx app was launched last year by Greenwood Gaming & Entertainment, the parent company of Parx Casino in Pennsylvania, and Playtech, an online gambling software supplier. BetParx is also available in New Jersey, Pennsylvania, Maryland, Michigan and Ohio.
Fanatics has considered an initial public offering, but has been looking to complete an acquisition in the gambling space, among other possible deals, ahead of going public, the people said.
The company would be entering a crowded marketplace. Dozens of sports-betting operators have emerged in recent years, including Flutter-owned FanDuel, DraftKings, Caesars and BetMGM, which is co-owned by MGM Resorts and Entain. As the space has grown more competitive, smaller players have struggled, with some, like MaximBet, ceasing operations recently.
Fanatics has been seeking a deal in the sports betting space for some time. Last year, it had been in discussions with small gambling operator Tipico, CNBC previously reported.
The company is opening Fanatics Sportsbook at FedExField, the stadium of the NFL’s Washington Commanders. Fanatics also said it received a temporary license to operate in Massachusetts, and plans to partner with Plainridge Park Casino, which is owned by Penn National.
In October, Fanatics said it hired Andrea Ellis as chief financial officer of its betting and gaming division.
Last year, Fanatics’ billionaire executive chairman Michael Rubin sold his 10% stake in Harris Blitzer Sports Entertainment, the owner of the Philadelphia 76ers and New Jersey Devils, allowing Fanatics to enter the gambling space. NBA rules prohibit team owners from operating a gambling platform.
Fanatics raised $700 million in capital late last year, which the company planned to use toward potential mergers and acquisitions across the collectibles, betting and gaming businesses, CNBC previously reported.
The fresh round of capital brought Fanatics’ valuation to $31 billion.
Rubin’s company has been rapidly growing recently, pushing past solely being an online sports merchandise business. The company estimates its revenue for Fanatics, including its Lids segment, will be approximately $8 billion in 2023.
The company has been growing through acquisitions. Last year, it expanded its footprint in the collectibles business with a $500 million acquisition of Topps. It also bought clothing brand Mitchell & Ness in partnership with LeBron James and Kevin Durant.
–CNBC’s Jessica Golden contributed to this article.
Fanatics CEO Michael Rubin selling stake in company that owns Philadelphia Sixers, New Jersey Devils
Fanatics CEO Michael Rubin, a prominent minority owner of the Philadelphia 76ers, is selling his stake in the Harris Blitzer Sports & Entertainment company that owns the Sixers and New Jersey Devils, he announced Wednesday.
Rubin, who sources say holds a 10% equity stake in HBSE, is divesting his 11-year stake in the NBA and NHL franchises because of looming conflicts in the expansion of his Fanatics business into sports betting and individual player partnerships.
“As our Fanatics business has grown, so too have the obstacles I have to navigate to ensure our new businesses don’t conflict with my responsibilities as part-owner of the Sixers,” Rubin said in a statement. “… Given these realities, I will sadly be selling my stake in the Sixers and shifting from part-owner back to life-long fan.”
Fanatics is a $20 billion-plus company that sells licensed professional and college merchandise online. The expansion into sports betting and negotiating individual partnership deals with pro athletes creates numerous conflicts with collective bargaining rules.
Prior to the Sixers-Brooklyn Nets trade involving guard James Harden in February, Rubin drew the scrutiny of NBA rivals because of his close relationship with Harden. Rubin can now enter outside financial partnerships with players who were disallowed because Rubin was a part-owner of the teams, an avenue that could prove beneficial to the Sixers as they work to re-sign Harden.
“Given Michael’s tremendous success growing Fanatics into a global platform across every major sport, his decision doesn’t come as a surprise,” HBSE founder and managing general partner Josh Harris said in a statement. “I am so grateful for his years of partnership. His fierce passion, entrepreneurial mindset and steadfast commitment to doing the right thing have left an indelible mark on the Sixers organization.
“Michael will always be a member of our HBSE and Sixers family, continue to be a presence courtside and a key partner in our collective commitment to be a force for good in Philadelphia.”
Said HBSE co-founder and co-managing partner David Blitzer: “Michael is a visionary and innovator who has played an integral role in helping us grow and position HBSE for future success. He has been an incredible friend and business partner over the last 11 years and his instincts, work ethic, passion, and ability to bring people together have helped establish him as one of the industry’s most influential and successful leaders.
“Michael has used those same attributes to help us evolve and grow, all while becoming a driver of positive, inspiring change in our communities. As he prepares for this new chapter in his career, I’m excited to watch Michael further revolutionize the Fanatics business, unlocking its full potential by connecting sports fans from around the world through a multitude of new platforms and verticals.”
‘Sick to my stomach’: Dollar Tree fanatics protest new $1.25 prices
Dollar Tree’s recent decision to end $1 prices after 35 years and raise most items at stores to $1.25 has elicited an angry response from many loyal customers on Twitter, Facebook, TikTok and YouTube.
Video bloggers with hundreds of thousands of followers posted videos of their reactions to the price hike — or entering a store for the first time and seeing Dollar Tree’s ubiquitous green and yellow “Everything’s $1” circles replaced with $1.25 signs.
Some shoppers have started derisively calling the chain “$1.25 Tree” and say it should change its name.
The criticism highlights the risks that Dollar Tree — the last of the big dollar store chains to actually sell nearly everything for a dollar — took when it abandoned its $1 brand identity.
“I wish they wouldn’t have done that because most of their shoppers are people who are not getting paid a lot of money,” said Leniza Costa, a beauty influencer in Pawtucket, Rhode Island, who is “known for always going” to Dollar Tree.
Costa won’t shop at Dollar Tree (DLTR) as often and instead will look to purchase $1 items at Walmart (WMT).
“This is the worst time to increase the price, when everything else is so much,” she said.
We won’t know for certain whether customers are turning their backs on Dollar Tree’s new prices until it reports its quarterly results in the coming weeks. But there are signs the move may be alienating some shoppers.
A weekly online survey of around 500 consumers by Coresight Research, a retail research and advisory firm, found a 6.2% drop from December 27 to January 3 in the number of customers who said they had bought non-food items at Dollar Tree compared to the prior two weeks. A steeper decline of 12.2% was recorded among shoppers ages 45 to 60. Other chains, including Walmart and Dollar General, did not see similar drops in the surveys.
Dollar Tree added the $1.25 prices to more than 2,000 stores in December (it has around 8,700 US stores), and Coresight said in a report that its “decline in shopper numbers appears to coincide with its price hike.” The firm cautioned against an “overreliance on a single week’s data point,” but said the latest figures “may reflect a shopper exodus on the back” of the price change.
“We have had a very positive response from the overwhelming majority of our customers around the $1.25 price point and the extreme value and broader product selection it has enabled, especially in these inflationary times,” a Dollar Tree spokesperson said in an email. “We look forward to providing more details on this initiative during our next earnings call.”
‘Our niche’
The $1 price was almost sacrosanct to Dollar Tree, which sells toys, home furnishings, kitchenware, holiday decorations, stationary, party supplies, arts and crafts, books, food, household essentials and other items.
Macon Brock, a Dollar Tree founder, said in his 2017 autobiography that “I viewed the dollar-only concept as sacred. It was everything. Without it, we’d be just another discount retailer.”
“Ditch the dollar, I believed, and we’d surrender our niche,” he wrote.
As recently as August, Dollar Tree chief executive Michael Witynski said the company was committed to $1. “This dollar price point is going to be more important than ever,” he said on an analyst call.
Selling everything for $1 was also easy on Dollar Tree store operations. Workers didn’t have to constantly spend time changing price displays in aisles or tags on shelves, and it was simple for customers on tight budgets to keep track as they shopped.
Dollar Tree raised prices because its business was pressured by having to keep everything under $1. Labor, transportation, fuel, merchandise and shipping costs have surged, squeezing the company’s profits.
Some merchandise also suffered as a result of the $1 strategy. The chain had to discontinue several “customer favorites,” the company said in November, particularly in packaged and frozen foods. Raising prices will give Dollar Tree flexibility to reintroduce those items, expand its selection and bring in new products to draw customers, according to the company.
Dollar Tree had started selling items at $1.25 and $1.50 at some stores and said it got positive positive customer feedback on the test, leading the company to announce in November that it will move to $1.25 at all of its stores.
On December 12, in response to an activist investor pushing for broader changes at the company, including nominating an entirely new board of directors, Dollar Tree’s board said the price hike has been successful thus far.
The performance of stores with $1.25 prices “continues to validate our earlier tests and demonstrates the success of the Company’s strategy and execution,” the board said in a statement. The board said the move to $1.25 “was not a decision the Company took lightly, and required careful planning, including to ensure that it continues to provide a meaningful assortment with extreme value” to shoppers.
But some retail analysts have said the decision was rushed, jeopardizes the brand’s image and will lead shoppers to turn to competitors such as Dollar General (DG), which sells around 20% of its products for $1.
The price change “saddened” the Scent Maven, a video blogger who posts about her hauls at Dollar Tree and other stores, and will lead her to shop there less often. (She spoke under the condition that her name be withheld from the story to protect her identity.)
“We all, in the Dollar Tree community, hoped it wouldn’t happen,” she said, adding that $1 was a price “you could count on.”
“There was no doing math in your head or anything like that,” she said. “You know you could go to the Dollar Tree with $10 and walk out with 10 items.”
Although Dollar Tree has put up new signs at stores that say it will offer new items and “more thrills” at $1.25, she has yet to see the change.
“It’s like they’re promising you something more for 25 cents. But it’s not. It’s all the same quality and types of products.”
Fanatics valued at $18 billion with new investors including Jay Z
Fanatics Founder/Executive Chairman Michael Rubin attends Fanatics Super Bowl Party at College Football Hall of Fame on February 2, 2019 in Atlanta, Georgia.
Mike Coppola | Getty Images
Sports merchandise company Fanatics secured a $325 million raise on Monday to expand into new sectors within its parent umbrella. It’s now valued at $18 billion, sources informed CNBC.
The Florida-based e-commerce firm plans to focus on revenue streams outside of merchandising. The division will be led by Fanatics chairman Michael Rubin, who will serve as chief executive officer. Fanatics claims it will make $3.4 billion in revenue this year, according to The Wall Street Journal.
Fanatics is seeking new opportunities like sports gambling and this move explains why it’s been hiring new executives. Last month, Fanatics hired former IAC chief financial officer Glenn Schiffman to play a critical role in expanding into new sectors like gaming and new ticketing models. The company oversees a blockchain tied to their NFT company, Candy Digital.
Former Los Angeles Dodgers president Tucker Kain joined the firm as chief strategy and growth officer. Matt King, Fan Duel’s former CEO, is expected to help lead a sports gambling and gaming division.
It’s still unclear the role Fanatics might play within the sports gambling sector. The company explored acquiring sports gambling provider PointsBet, but those discussions ended.
Investors in the raise include hip-hop mogul Jay Z and his entertainment company Roc Nation. SoftBank and Major League Baseball also have equity in Fanatics.
The investment continues an active 2021 for Jay Z. Last February, Moet Hennessy, the wine and spirits division of luxury conglomerate LVMH purchased a 50% stake in his champagne brand, Armand de Brignac. And last March, Jack Dorsey’s Square platform purchased Jay Z’s Tidal music service for $297 million in cash and stock.
Meanwhile, Rubin is transforming Fanatics into a more globally focused digital sports company that can serve various sectors within sports (merchandise, gambling, ticketing and the NFT marketplace). Fanatics plans to leverage its over 80 million user base tied to its merchandise division.
Fanatics enhanced its operations via acquisitions in 2020. The company also started operations in China to help increase its valuation from $6.2 billion in August 2020 to $12.8 billion last March.
Jay-Z is seen on September 18, 2020 in New York City.
Robert Kamau | GC Images | Getty Images
Last December, Fanatics purchased sports manufacturer WinCraft to increase its presence with non-apparel merchandise. WinCraft sells home, office and automotive sports-themed merchandise, such as clocks and banners. The move accelerated its vertical commerce business and strengthened its manufacturing and distribution operations.
The National Football League and MLB benefit from any increased valuations since both leagues collectively invested $150 million in Fanatics in 2017. Last year, the $350 million raise resulted in a $100 million equity increase in their holdings in Fanatics.
And as Fanatics increases its stake throughout sports, it further fuels speculation an IPO is on the horizon. The company continues to downplay a potential entry into the public sector, though.
Asked about its plans on CNBC’s “Squawk Box” last March, Rubin responded: “I think going public is an option for us that we talk about a lot but it’s not something we’re focused on today. We’re focused on building a business. But I think we’re well-financed and have a lot of growth capital to continue to grow.”
CORRECTION: This article has been updated to reflect that Fanatics plans to expand into new sectors within its parent umbrella. It is not forming a new company.