Michael Rubin lives a life that many can only dream of, rubbing shoulders with Hall of Fame athletes and Grammy Award winners. Yet, despite his high-profile interactions and constant media presence, it’s his company, Fanatics, that captures the majority of his focus. What started as a small offshoot of GSI Commerce, which Rubin sold to eBay for $2.4 billion, has transformed into a billion-dollar sports merchandising and gambling empire.
Rubin attributes much of his success to his ability to evaluate business opportunities effectively. He operates on three core principles: identifying a significant business opportunity, considering if it can be enhanced, and determining its viability in the marketplace. This strategic mindset has been key in evolving Fanatics from an e-commerce sports business to a leading tech and logistics platform servicing major sports leagues.
The turning point for Fanatics came in 2018 when it secured a 10-year exclusive contract with the NFL to manufacture and distribute all Nike-branded merchandise. This partnership enhanced Fanatics’ market position and allowed the company to rapidly gain market share. However, the onset of COVID-19 presented a new set of challenges. While many businesses were scrambling to survive, Fanatics looked ahead, raising billions to pivot and invest in burgeoning sectors like sports betting, ticketing, and collectibles.
Despite the ambitious expansions, Rubin faced setbacks, notably in the NFT sector. After realizing the challenges during a brief foray into that market, he quickly pivoted, returning funding to investors and refocusing efforts elsewhere. Rubin believes it’s crucial to maintain a forward-thinking mentality to remain relevant in a rapidly changing business landscape.
One of Fanatics’ most notable successes is the launch of Fanatics Fest, dubbed the "world’s largest arena for sports and collectibles." This event has evolved into a platform that brings together sports fans, brands, and collectibles, and functions primarily as a marketing activation aimed at forging connections within the sports ecosystem. With plans for an even more elaborate Fanatics Fest in 2025, Rubin envisions this event as a cornerstone of Fanatics’ strategy.
In conversations about his company, Rubin remains grounded, expressing that they are just beginning their journey. Rather than resting on past achievements, he emphasizes a continuous quest for improvement across all facets of his business. He describes his team of over 22,000 employees as a startup, fueled by a hunger for innovation and growth.
As Fanatics diversifies its offerings, including a foray into the trading card and collectibles sector, Rubin remains laser-focused on optimizing customer experiences. He acknowledges that understanding customer needs is integral to their business strategy. With a growing customer base—now exceeding 120 million—Rubin is dedicated to enhancing the value proposition at Fanatics, creating a unique ecosystem for fans.
Fanatics’ entry into sports betting has proven to be another area of significant growth. By leveraging its extensive customer base, the company has adopted an innovative betting platform that earns dynamic feedback from users. This bettor-oriented model, offering incentives like “fan cash,” aims to differentiate Fanatics Sportsbook from more established competitors like DraftKings and FanDuel.
To bolster the company’s market share, Rubin frequently assesses competitor dynamics, believing that healthy competition drives his team to excel. In just under two years, Fanatics has garnered around 7% of the U.S. sports betting market—a commendable position given the dominance of established players.
Fanatics’ trajectory is further evident in its strategic acquisitions, such as Lids and Mitchell & Ness. These brands help diversify Fanatics’ product offerings, appealing to various segments of the sports fan demographic. Rubin’s approach to business extends beyond mere profit; it is driven by a strong desire to enhance customer experiences and create meaningful connections among sports fans.
While the business continues to evolve, Rubin prioritizes the need to balance work and personal life. He acknowledges the importance of spending quality time with his daughters, recognizing the challenges of maintaining a healthy work-life equilibrium as Fanatics grows.
In conclusion, Michael Rubin’s journey with Fanatics illustrates a relentless pursuit of excellence in the competitive sports merchandise and betting landscape. His ability to adapt during turbulent times, embrace new opportunities, and maintain a clear focus on enhancing fan experiences positions Fanatics as a formidable player in the industry. As the company continues to innovate and expand, Rubin’s commitment to growth and community impact remains paramount, solidifying Fanatics’ status as a leader in the sports sector.
