Fanatics is already a major player in sports merchandise and trading cards. Now, they could be angling to enter the sports media rights space. Sports Business Journal’s John Ourand reports that Fanatics CEO Michael Rubin has been in preliminary meetings to potentially add regional sports networks to Fanatics portfolio.
The sports merchandise and trading card company just added the latter title to its major business focus in recent months. Fanatics signed long-term trading card deals with the NBA, NBPA, MLB, MLBPA, and NFLPA this summer. The company is also exploring entering the gambling space by launching a sportsbook.
“Rubin’s meetings with league, team, distribution, and network executives have been dormant for several weeks, and nothing is imminent, as sources say Fanatics is concentrating on expanding other parts of its business before tackling media,” Ourand wrote in the article. “Several sources said that these talks with Rubin could pick back up again next year. Plus, leagues, teams and media companies are considering several options beyond Fanatics.”
The company could disrupt the RSN business just like the trading card business, which they came out of nowhere to upend over the summer.
Fanatics Trading Cards hasn’t released any products yet but is already valued at $10.4 billion after its latest funding round. Fanatics owns around 80% of the trading card company, with other investors like private equity giant Silver Lake, talent agency Endeavor, and VC firm Insight Partners all working into the fold.
The Michael Rubin-owned company is pushing into merchandise, trading cards, ticket selling, and sports betting. Media rights are the next logical step in that endeavor, but RSNs aren’t the same as those other industries.
Fanatics would likely have to take a loss on the properties in terms of subscriber-generated revenue, but the access to all of those team broadcasts could do wonders for its other business arms.
Leagues need a buyer for their distressed RSN assets, and Rubin could be their man.