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Fanatics IPO: Everything You Need to Know About Fanatics

Article By: ,  Head of Market Research
January 21, 2024 10:54 PM

What Do We Know About the Fanatics IPO?

Fanatics, the global leader in licensed sports merchandise, is steadily gearing up for its highly anticipated Initial Public Offering (IPO).

Although the exact timing is not set, steps towards an IPO are evident with strategic hires, including Andrew Low Ah Kee as the CEO of its merchandise business and Deborah Crawford as the head of investor relations. The CFO, Glenn Schiffman, hinted at an IPO timeline in the medium term, possibly within the next 12 to 24 months, subject to business conditions and market dynamics..

What is Fanatics?

Fanatics stands at the forefront of sports merchandise, collaborating closely with major sports leagues like the NFL and NBA to provide fans with branded merchandise through its robust e-commerce platform and retail stores.

The company's ambition doesn't stop at merchandise; it is rapidly expanding into digital collectibles, sports betting, and trading cards, marking its territory in the broader sports domain. The acquisition of Topps for $500 million and other strategic moves underlines Fanatics' commitment to dominating the global sports fan market.

Source: Fanatics

How Much is Fanatics Worth?

Fanatics' valuation has seen a remarkable ascent, reflecting its dominant position in the sports merchandise sector and its aggressive expansion into new markets.

Following a $700 million capital raise in December 2022, the company was valued at a staggering $31 billion. This valuation marks a significant upswing from its previous figures, underscoring the company's successful growth strategy and the high expectations from investors and the market.

With such a robust valuation, Fanatics is poised to make a significant impact when it eventually goes public, potentially marking one of the largest IPOs of the year.

Is Fanatics Profitable?

As a private entity, Fanatics hasn't disclosed detailed financials, but its aggressive growth trajectory and recent valuations suggest a strong financial standing. The company is reportedly projecting about $8 billion in revenue in 2023, excluding trading card rights.

While it's not explicitly stated whether Fanatics is currently profitable, the ambitious long-term profitability goals set by CEO Michael Rubin, envisioning annual profits matching its 2023 revenue in a decade, reflect a positive outlook on the company's financial future.

What is Fanatics’s Business Model?

Fanatics operates with a multifaceted business model, primarily focusing on manufacturing and selling licensed sports merchandise. The company's business model extends beyond merchandise, with significant investments in sports betting, digital collectibles, and trading cards. Fanatics leverages its exclusive licensing deals, digital platforms, and a strategic approach to acquisitions and partnerships to fuel its growth and expand its market influence.

Who are Fanatics’s Competitors?

While Fanatics holds a dominant position in sports merchandise, it competes with other major brands and platforms in sports apparel, betting, and digital collectibles. Notable competitors include Nike, Dick's Sporting Goods, and DraftKings, each with a substantial presence in their respective domains.

As Fanatics ventures into new markets like sports betting and digital collectibles, it will encounter a diverse set of competitors, driving the need for innovative strategies and continuous growth.

Who Owns Fanatics?

Fanatics is owned by a group of high-profile investors and companies, including the NFL, MLB, NBA, NHL, MLS, Silver Lake, SoftBank, BlackRock, Fidelity, and MSD Partners. This strong backing not only provides financial support but also offers strategic advantages in terms of partnerships and market access.

As Fanatics moves towards an IPO, the dynamics of ownership and investment in the company are poised to evolve further.

-- Written by Matt Weller, Global Head of Research

Follow Matt on Twitter: @MWellerFX

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