Sports merchandising company Fanatics is reported to be in advanced negotiations to acquire sports betting company Tipico.
The news follows yesterday’s announcement that Fanatics’ executive chairman Michael Rubin is in the process of selling his sporting interests including his 10% share in Harris Blitzer Entertainment, the company that owns the New Jersey Devils and the Philadelphia 76ers.
In a statement released on Twitter, Rubin said:
“As our Fanatics business has grown, so too have the obstacles I have to navigate to ensure our new businesses don’t conflict with my responsibilities as part-owner of the Sixers.
With the launch of our trading cards and collectibles business earlier this year — which will have individual contracts with thousands of athletes globally — and a soon-to-launch sports betting operation, these new businesses will directly conflict with the ownership rules of sports leagues. Given these realities, I will sadly be selling my stake in the Sixers and shifting from part-owner back to life-long fan.”
The sale of Rubin’s sporting interests is a necessary one as NBA rules prohibit team owners from investing in or owning any sports betting platforms.
Earlier this year Rubin spoke of his desire to enter the sports betting industry telling Sports Business Journal:
“We can be the No. 1 player in the world in that business in 10 years. That does seem ambitious for someone who’s not in the business today, but our strategic advantages are that we are one of the best-known digital sports brands and we touch so many fans.”
Tipico has a relatively small footprint in the United States and currently has licenses to operate in both New Jersey and Colorado. However, the company is one of the leading sports betting providers in Germany and is owned by investment firm CVC Capital Partners.
The move to acquire Tipico looks set to be the latest in a string of deals to strengthen Fanatics’ position in the sports industry. In 2020, the company acquired WinCraft, a sports merchandise manufacturer. Then in early 2022, Fanatics paid $500 million for trading card company Topps.
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