Fanatics CEO, Michael Rubin, will sell his minority stake worth 10% in Harris Blitzer Sports & Entertainment (HBSE), the owners of the Philadelphia 76ers and New Jersey Devils.
Rubin, currently the third largest shareholder in the company behind managing partners Josh Harris and David Blitzer, will part with his stake due to conflicts with collective bargaining rules.
The move is a direct result of the ongoing growth and expansion of Fanatics into other fields such as sports betting, with former Fan Duel CEO, Matt King, brought in recently to lead Fanatics’ sports betting and iGaming division, and the acquisition of trading card company, Topps, which will work with the NCAA and major leagues to create NIL opportunities for current and former college athletes.
Speaking on the decision, Rubin said in a statement: “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.”
“With the launch of our trading cards and collectibles business earlier this year, which will have individual contracts with thousands of athletes globally, and a soon-to-launch sports betting operation, these new businesses will directly conflict with the ownership rules of sports leagues.
“Given these realities, I will sadly be selling my stake in the Sixers and shifting from part-owner back to life-long fan,” Rubin said.
The interest in Rubin’s stake in HBSE will likely be immediate and see the 10% stake go for a major fee, after the company sold a stake between a reported worth of 5-10% to private equity firm, Arctos Sports Partners earlier this month.
