# Fanatics, Inc.

Fanatics, Inc. is a global digital sports platform that consists of several businesses, including licensed sports merchandise, trading cards and collectibles, sports betting and iGaming, special events, and live commerce. The company began as an American online retailer of licensed sportswear and merchandise, which operated the e-commerce businesses of major professional sports leagues and media brands, as well as hundreds of collegiate and professional team properties.

## History

Michael G. Rubin is the founder and CEO of Fanatics. 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. Rubin sold GSI to eBay in 2011 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.

### The early years

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. This move added the brands FansEdge and Mounted Memories, which was rebranded as Fanatics Authentic division.
Rubin's vision was to differentiate Fanatics by serving the real-time expectations of global sports fans and partners. In 2014, Doug Mack was appointed CEO and Fanatics opened a Bay Area office to tap into the Silicon Valley tech talent pool. Mack helped Fanatics move from a domestic e-commerce business to a mobile-first, direct-to-consumer brand with its own manufacturing capabilities. Priorities such as real-time manufacturing, data, and technology, would guide the company's innovative vertical commerce (v-commerce) model.
In 2015, Fanatics raised $300 million from Silver Lake Partners. In early 2016, the company acquired UK-based internet retailer Kitbag to accelerate focus around international expansion and global soccer. 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 Inc. 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.
In September 2017, Fanatics closed a $1 billion round of fundraising led by Softbank, with participation from the NFL, MLB, NHL, MLS and NFLPA. Fanatics was expected to produce $2.2 billion in annual revenue that year. The next month, Fanatics acquired Fermata Partners to transform the college licensed sports business and a new Fanatics College division was formed. 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.
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. 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.
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. The celebrity and athlete driven ALL IN Challenge exploded on social media and raised $60 million to provide nearly 300 million meals for Feeding America, Meals on Wheels, No Kid Hungry, and World Central Kitchen. 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. 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. In December 2020, Fanatics acquired WinCraft, the preeminent licensed hardgoods and promotional products company, which increased the company's presence with non-apparel merchandise.

### Global digital sports platform (2021–present)

In March 2021, Fanatics secured a $320 million funding round, followed by another $325 million in August 2021 that brought the company's valuation to $18 billion as of September 2021. During the latter funding round, Fanatics also announced plans to evolve into a global digital sports platform through expansion into new verticals. It was reported at that time that these verticals may include NFTs, trading cards, sports betting and gaming, ticketing, media and more. With the move, Rubin assumed the new role of CEO of the broader Fanatics portfolio.
In May 2021, Rubin co-founded the digital collectibles company Candy Digital with Mike Novogratz and Gary Vaynerchuk. Candy Digital secured an exclusive, long-term agreement with MLB as its first content partner. 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. In January 2022, Fanatics divested its 60% stake in Candy Digital.
In August 2021, Fanatics secured long-term trading cards manufacturing and distribution rights from MLB, MLBPA, NBA, NBPA, and NFLPA. A month later, Fanatics Collectibles, Fanatics' new trading cards and collectibles business secured a $350 million Series A round at $10.4 billion valuation. Fanatics acquired Topps, the preeminent licensed trading card brand that has serviced collectors, fans and retailers for more than 70 years, in early 2022. As part of the deal, approximately 350 global Topps sports and entertainment employees joined Fanatics to operate under Fanatics Collectibles.
In February 2022, Fanatics, along with some names in sports, entertainment and culture, acquired lifestyle and streetwear brand Mitchell & Ness from Juggernaut Capital Partners. Mitchell & Ness continues to operate as a separate, distinct brand within the Fanatics Commerce division. In April 2022, Fanatics announced a $1.5 billion fundraising round followed by another $700 million in December 2022, reportedly pushing the company's valuation to $31 billion. During the December round, Rubin announced Fanatics would be expanding into a third vertical in 2023, Fanatics Betting & Gaming.
In May 2023, Fanatics bid to acquire PointsBet's U.S. business for $150 million, marking Fanatics' first move into the U.S. sports betting industry. Fanatics expanded its international footprint for the Commerce business with the acquisitions of Italian sports merchandise company Epi in April 2023, and Latin American sports wholesaler Fex Pro in June 2023. Also in June 2023, Fanatics increased the offer to $225 million to outbid DraftKings after that company made a competing bid of $195 million. The first wave of the deal closed in August 2023 in eight U.S. states and started the brand transition from PointsBet to Fanatics Sportsbook. In October 2023, Fanatics sold Bazooka Candy Brands and its product portfolio, which was part of Topps, to Apax Partners.

## Businesses
### Fanatics Commerce

The Commerce division under CEO Andrew Low Ah Kee designs, manufactures, and sells licensed fan gear, jerseys, lifestyle and streetwear products, headwear, and hardgoods. The business operates digital and physical retail locations across leagues, teams, colleges, and associations globally, as well as the flagship site, Fanatics.com. Fanatics has online, sports venue, and vertical apparel partnerships worldwide with all major professional sports leagues and hundreds of collegiate and professional teams, including the NFL, NBA, MLB, NHL, MLS, Formula One, and Australian Football League. Notable partnerships include the rights to design, manufacture, distribute all Nike MLB/NFL fan gear sold at retail; a deal with Barnes & Noble Education (BNED) and Lids to power the fan apparel experience across 750+ BNED online bookstores; a 10-year licensing, manufacturing and e-commerce partnership with Paris Saint-Germain FC; a 10-year exclusive merchandise partnership with the Dallas Cowboys; and launching the first global e-commerce platform as part of an agreement with the International Olympic Committee that runs through the LA 2028 Summer Games.

### Fanatics Collectibles

Fanatics Collectibles was launched in 2021 after securing long-term, exclusive rights to design, manufacture and distribute trading cards for several sports properties, including MLB, MLBPA, NBA, NBPA and NFLPA. Fanatics Collectibles is led by CEO Mike Mahan, who joined the company in June 2022.

### Fanatics Betting & Gaming

Fanatics Betting & Gaming is developing an online and retail sports betting and online casino platform, leveraging the Fanatics brand and its extensive database of sports fans. The division is led by CEO Matt King, formerly of FanDuel. Fanatics Sportsbook is live in 16 states as of March 2024.

### Fanatics Live

In July 2023, Fanatics launched Fanatics Live, a live commerce platform aimed at enhancing the digital shopping experience. Led by CEO Nick Bell, the live shopping app features trading card "breaks," limited edition merchandise drops, and creator content for sports fans and collectors to shop in real time.

### Fanatics Events

Fanatics Events is a venture focused on creating events similar to Comic Con for sports fans. In partnership with IMG, Fanatics Events aims to bring together fans from various interests, including sports, music, fashion, and entertainment. The first event, WWE World, took place as part of WrestleMania in April 2024.
Fanatics Events, in collaboration with WWE, will host WrestleMania 41 at the Las Vegas Convention Center, from April 17 to April 21, 2025. The following superstars were picked for this event:
* Cody Rhodes
* Jey Uso
* Rhea Ripley
* The Undertaker

## Criticism and controversies

Fanatics is considered by many a monopoly in North America due its aggressive ventures into sports merchandising and collectible card markets. Such aggressive actions have been the subject of lawsuits by smaller vendors and other companies such as Panini. These legal battles have centered around allegations of anti-competitive conduct and interference with business relations, further fueling the debate about Fanatics’ market practices. In addition to legal challenges, Fanatics has also been subject to various types of fan criticism. Many consider the Fanatics products subpar, citing issues with the quality and design of their merchandise. So much so, that there are even dedicated pages where consumers voice their dissatisfaction and critique such poor products.
A notable event was the backlash over the quality of its MLB jerseys before and during the 2024 season. During spring training, the Kansas City Royals opted out of using the Vapor Premier template, instead wearing uniforms that featured the larger player name and number font used by the older uniforms. By the time the 2024 regular season started, the league required the Royals to instead wear the new uniforms with the smaller font sizes, with a league spokesperson giving "consistency with other Major League Baseball teams" as the rationale for the mandate. Following player complaints, MLB and Nike announced adjustments to the uniforms, including enlarged lettering and full pant customization starting in the 2025 season. The MLB Players Association memo emphasized that the issues were related to Nike's design rather than Fanatics' manufacturing.