A detailed photo of Fanatics apparel on display at NFL Hospitality during the 2018 NFL Annual Convention at the Ritz Carlton Orlando, Great Lakes on March 26, 2018 in Orlando, Florida.
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The NFL, other major sports leagues, players’ unions and team owners are leading the latest round of investment in Fanatics, the fast-growing online sports platform company.
The most recent investment totals $1.5 billion, with the NFL providing the largest contribution at $320 million. Fanatics is valued at $27 billion.
The NFL Players Association also invested. Other investors include Major League Baseball and its players’ union, and the National Hockey League.
Joseph Tsai, co-founder of Alibaba and owner of Brooklyn Nets, and Qatar Investment Authority, owner of the Paris Saint-Germain football team, are also investors in this latest round.
The investment continues the trend of leagues and player associations wanting a piece of the Fanatics pie. Similarly, the NBA recently took a 3% stake in SportRadar.
Florida-based Fanatics was founded in 2011 by Michael Rubin, co-owner of the Philadelphia 76ers and New Jersey Devils. It now has exclusive licensing agreements with the NFL, NHL, NBA, MLB and colleges and universities to manufacture and sell official team merchandise.
Earlier this year, the company expanded beyond its merchandise base, acquiring Topps trading cards for $500 million. Fanatics’ company is now valued at $10 billion following a $350 million funding round last September.
Leagues, player associations, and team owners now own about 10% of Fanatics. The NFL and MLB first invested $150 million in Fanatics in 2017. CNBC previously reported that other investors in the recent funding round included Michael Dell’s Fidelity, BlackRock and MSD Partners.
“This investment not only reflects our experience working with Michael [Rubin] and the team at Fanatics for a number of years, but we believe the company is building a business that is new, unique and valuable,” NFL chief media and business officer Brian Rolapp told CNBC of the recent investment round.
Last year, Fanatics launched Candy Digital, which sells non-fungible tokens or NFTs. The company also owns half of hat retailer Lids Sports Group, which it acquired in 2019.
With the launch of an online sportsbook led by former FanDuel CEO Matt King, Fanatics now has its eye on the sportsbook space.
With the growth comes speculation of a possible IPO, but Fanatics isn’t showing: While it’s “clearly an available option for us, there’s no update on any timing,” a company spokesman said. “Our focus remains on growing the business and building the leading digital sports platform over the next decade and beyond.”
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