By his own account, Michael Rubin has always had two constants throughout his life: 1) a love for the Philadelphia 76ers and 2) a passion for starting and running businesses. He watched the 76ers win a title when he was 11 years old, and the following year, he started a ski-tuning shop in his parents' basement.
In 2011, Rubin sold another company, Global Sports Incorporated, to eBay for $2.4 billion, netting himself a $150 million windfall. eBay was only interested in the order fulfillment part of the company, so Rubin was able to buy back multiple parts of GSI at a heavily discounted price. That buyback included Fanatics, where Rubin continues to serve as CEO.
Shortly after making that deal, Rubin bought a minority share in his beloved 76ers as part of the Harris Blitzer Sports & Entertainment (HBSE) investment group. HBSE spent $280 million on its stake. Two years later, it purchased a stake in the New Jersey Devils and management of the Prudential Center for a combined $320 million.
In June 2022, Rubin announced he was selling his stakes in both teams. Rubin tweeted his reason for selling:
"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."
Michael Rubin (left) with Kevin Hart. (Kevin Mazur/Getty Images for Fanatics)
Though Rubin has bittersweet feelings about selling, the decision is going to net him a significant windfall.
While it's unclear what Rubin spent as part of HBSE's initial investments, he owns a 10% stake in the teams. Assuming he also put in 10% of the purchase price, we can estimate he spent around $60 million to buy the 76ers and Devils.
At the time he announced he was selling his stakes in both teams, HBSE's valuation was about $3 billion. Ten percent of $3 billion is $300 million. That means Rubin will make five times his initial investment. That should soften the blow of being forced to sell a stake in his beloved 76ers.
Fanatics looks poised for long-term success, too. The company acquired trading card company Topps in January 2022, lifestyle and streetwear brand Mitchell & Ness in February 2022, and announced a $1.5 billion fundraising round in April 2022 that valued the company at $27 billion.
Rubin may have to give up his ownership stakes, but he'll still get to be a fan of the team he loves. And he'll have plenty of money to buy some team merchandise.
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