Michael Rubin, is looking to enter the sports betting industry. Rubin plans to integrate his company Fanatics into a one-stop shop for ultimate sports fans. Therefore, it will be a place for sports betting tickets, collectibles, and team merchandise.
On June 22nd, Rubin decided to sell his stake in the Harris Blitzer Sports and Entertainment group that owns the Sixers and Devils. His reasoning for selling his ten percent equity stake in the group was to put his entire focus on the growth his company. Additionally, his ownership of the Sixers and Devils would definitely create conflicts with his plan to enter the sports betting industry.
Rubin spoke on a podcast to discuss his intentions with the company in the future and the conflicts the ownership created, stating, “When I saw that it was holding back Fanatics, it was immediately an easy decision. Fanatics is a massive opportunity. This is a company I think can be the most valuable company in sports. Potentially the most valuable company in technology. I am locked-in and laser-focused”.
Rubin has built it into one of the best-known sports merchandise shops and recently got an evaluation of $27 billion. His goal is to get th company to a $100 billion evaluation.
This sounds like a man ready to storm the sports betting space. Rubin had always had an entrepreneurial spirit and a sense of opportunity since he was 11 when he started a ski shop in his parents’ basement.
The podcast also goes more in-depth on his plans with the sports betting venture. In The Volume with Colin Cowherd, Rubin states, “There really isn’t another company today that is working to build an end-to-end digital sports platform.”
Rubin’s Competitive Advantage
The company have a competitive advantage over other sportsbooks. It holds a customer database of 100 million. The online manufacturer and retailer of licensed sportswear, sports collectibles, NFTs, trading cards, and sports merchandise is already well known for every sport. It has partnerships with Major League Baseball, the National Basketball Association, and the National Football League. Rubin has already shown his tolerance to take risks for technological advancement after his interest in the digital market space for collectibles/NFTs.
In June 2021, Michael Rubin, Michael Novogratz, and Gary Vaynerchuk created a company called Candy Digital, specializing in virtual collectibles with the MLB as its first sponsor. He also got the rights for the MLB, the NFL, and the NBA to produce trading cards and acquired Topps trading cards for about $500 million. He mentioned to Cowherd that the collectibles industry needs better marketing, more innovative products, and the elimination of redemptions.
The main obstacle for Rubin will be his major competitors. The companies already own a significant market share of the sports betting space, but Rubin hopes to create the ultimate fan experience and the best product for sports fans.
This is not a short-term play for Rubin. He has a long-term view of the market and sees the growth in the sports betting space. He has been quoted stating, “I think ten years from now sports gambling will be completely mainstream in most places in North America,” and we already see this with the expansion of legalization in states like New York.
It is important to remember that sports betting is still not legalized in two of the largest states based on population: Texas and California. They are bullish on the growth of sports betting, and an employee has been heard stating their intentions to win over the industry in five to ten years, not one to two.
Rubin’s Plans
He has already taken steps, including getting a patent for a mobile betting app, sportsbook, and casino, and is actively looking to enter markets that make economic and financial sense. Rubin plans to create an excellent product for a sports fan that implements sports betting, licensed sportswear, sports collectibles, NFTs, trading cards, and sports merchandise. He is genuinely looking to develop the ultimate fan experience!
