Fanatics CEO selling stake in Philadelphia 76ers, New Jersey Devils to avoid conflict of interest

Michael Rubin, the CEO of digital sports platform Fanatics, is selling his reported ten percent stake in Harris Blitzer Sports & Entertainment (HBSE), owner of the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils.

According to Rubin, with the Fanatics business grown, he has to navigate many obstacles to ensure their new business doesn’t conflict with his responsibilities as Sixers part-owner.

He noted that their trading cards and collectibles business and a soon-to-launch sports betting operation will directly conflict with the ownership rules of sports leagues.

The 49-year-old Rubin last upped his holding in HBSE in September 2020 to become its third-largest shareholder behind managing partners Josh Harris and David Blitzer.

After selling a stake, reportedly between five and ten percent, to private equity company Arctos Sports Partners this month, HBSE was valued at more than US$3 billion.

Fanatics, whose’ valuation hit US$27 billion in March, has established a trading card business and launched its Candy Digital non-fungible token (NFT) venture.

Major acquisitions for Fanatics this year have included lifestyle brand Mitchell & Ness from Juggernaut Capital Partners and trading card giant Topps for US$500 million.