- Billionaire Michael Rubin is selling his ownership stake in the Philadelphia 76ers.
- This is due to a conflict between Rubin’s growing sports e-commerce company, Fanatics, which is looking to expand into sports betting.
- The fanatics are currently valued at $27 billion.
Billionaire Fanatics CEO Michael Rubin announced Wednesday that he is selling his 10% stake in the parent company, which owns the Philadelphia 76ers and New Jersey Devils, after he faced conflicts of interest with the fanatics’ collectible and planned sports betting operation. cited.
Rubin has no plans to buy into a different team after selling his stake in Harris Blitzer Sports & Entertainment, a person familiar with the matter told CNBC. Instead their focus is on the sports e-commerce company Fanatics, which since 2011 has grown into a global operation with a valuation of $27 billion.
“When I was part of the ownership group that acquired the Sixers in 2011, Fanatics started out with selling only licensed sports products online, with a small office in the King of Prussia,” Rubin said in a statement Posted on Twitter. “Today, Fanatics has rapidly transformed into a global digital spots platform across multiple businesses, with more than 10,000 employees in 57 countries and serving nearly 100 million sports fans worldwide.”
Fanatics’ growth in recent years has been partially fueled by the acquisition of WinCraft, which makes sports-themed merchandise and Tops, the trading card company it bought for $500 million.
The NFL, MLB, NBA, NHL, MLS and some player associations have a stake in Fanatics, which has multiple licensing rights and deals with professional and college athletes.
Topps recently announced that it will launch a new line of trading cards featuring college athletes this fall, an event that will involve more than 150 schools and cut profits to some players.
“I had the wonderful opportunity to be part of the ownership group that bought the team that I grew up idolizing,” Rubin said in his statement. “Participating in sports, getting to know our players and taking a closer look inside has been one of the most exciting and educational aspects of my life.”
— CNBC’s Jessica Golden contributed to this article.
Credit: www.cnbc.com /