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New York Post
Fanatics CEO Michael Rubin looks to sell $1B in company stock as revenue stalls: report
By Ariel Zilber,
5 hours ago
Fanatics CEO Michael Rubin is looking to sell up to $1 billion of his stake in the sports-merchandise empire as skeptics on Wall Street claim the company’s growth has stalled, according to a report.
Despite the glitz and glitter of his parties, however, Fanatics has suffered from a drop in revenue this year that has Rubin looking to sell as much as $1 billion worth of company stock to an outside buyer, according to the Air Mail newsletter.
Michael Rubin is the billionaire CEO of sports apparel brand Fanatics. Getty Images for Fanatics Rubin is seen alongside Lala Anthony (far left), Kim Kardashian (second from left) and Khloe Kardashian. michaelrubin/Instagram
A Fanatics spokesperson called the July 20 report by William D. Cohan “completely untrue.”
“Revenues are up 17% year to date and are expected to be $8 billion this year,” the rep told The Post on Tuesday.
He added that earnings “will be even better in 2025.”
The spokesperson also denied that a stock sale was in the works.
“Michael is not looking to sell any shares in the company. It’s completely wrong,” the rep The Post.
Wall Street observers have been expecting Rubin to take the company public, possibly even this year. Fanatics raised $700 million, valuing the company at $31 billion, in December 2022.
Investors include asset management giant BlackRock and Fidelity, along with several major sports leagues, according to independent financial research firm Investor Place .
Rubin is seen with Megan Fox (left) and Machine Gun Kelly (right). michaelrubin/Instagram
“There will be a moment in time where it will make sense,” a Fanatics spokesperson told Air Mail when asked about the planned IPO. “Right now, we’re heads-down on building our business.”
Credit-rating agencies have also raised red flags when it comes to Fanatics, according to Air Mail.
Drake is seen alongside Michael Rubin at his “white party” in the Hamptons. michaelrubin/Instagram
Last September, Fanatics reported “meaningful margin deterioration” through the first half of 2023.
S&P Global predicted that Fanatics would face “challenging operating conditions” in 2024 after parts of the business barely turned a profit in the second quarter of last year.
According to the credit-rating agency, Fanatics’ “adjusted EBITDA” margins fell to 2.5% from 8%.
S&P Global also noted that Fanatics’ debt rating had dropped, which put the company at risk of having its credit rating downgraded, according to Air Mail.
Rubin throws his annual star-studded bash at his $50 million mansion in the Hamptons. Page Six
In December, another credit-rating agency, Fitch, lowered Fanatics’ credit rating as well as that of its parent company and its collectibles subsidiary due to losses in its gaming and online-betting division.
Fitch warned that the company’s failure to reduce losses “could lead to a deterioration of its liquidity and put pressure on the company’s credit profile,” according to Air Mail.
A month earlier, Moody’s downgraded the credit rating of the debt accrued by the Fanatics subsidiary that sells officially licensed sports merchandise.
Moody’s cited “significantly weaker than expected earnings and cash flow and the risk that the increasingly difficult operating environment will challenge its ability to achieve the appropriate level of returns on its current investments,” according to the report.
For the latest in sports, top headlines, breaking news and more, visit nypost.com/sports/
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