What is Fanatics’ stock price, and are they publicly traded? Unfortunately, investors cannot purchase Fanatics shares because it is a private company. However, Nike (NYSE: NKE), Under Armour (NYSE: UA), and Dick’s Sporting Goods (NYSE: DKS) are sporting goods stocks that traders can invest in.
Sports fans are very loyal. We flash our new gear and rush to buy the latest jerseys and trading cards. Reebok, Nike, Adidas, and Under Armour have been the big names in the sportswear industry for many years, but a new company has entered the game.
Fanatics has become the global leader in licensed sports merchandise and has seen remarkable growth in recent years. The company is expanding beyond its core merchandise business into new markets like sports betting and trading cards.
The company is eyeing an IPO in 2024 or 2025 depending on market conditions. Here is everything you need to know about Fanatics before it hits the stock market in the US.
Table of Contents
Fanatics Introduction (No Stock Symbol)
Fanatics was founded in 1995 in Jacksonville, Florida. It began with a single brick-and-mortar store selling merchandise for the Jacksonville Jaguars and local college teams. After a few years, a second store opened, and an online presence was established.
To become competitive, Fanatics needed to grow and find a new owner. In 2012, it was purchased by Michael Rubin for $277M, along with a 70% stake in Rue La La and ShopRunner, forming the umbrella company Kynetic.
Today, Fanatics has a list of very impressive investors. Michael Rubin remains the majority owner. The NFL, NBA, MLB, NHL, and MLS are minority owners, along with Silver Lake, SoftBank (which led a $1B investment round in 2017 that valued Fanatics at $4.5 billion), BlackRock, Fidelity, and more.
These investors allowed Fanatics to quickly grow exponentially. It took the market share away from other big brands and rapidly rose to the top of the sportswear ladder. Therefore, Fanatics stock could do well.
Licensed Sports Leagues Products
Fanatics has secured exclusive licensing arrangements with major professional sports leagues. The company produces a wide range of licensed sports merchandise, such as apparel, headwear, hard goods, and sports memorabilia. Their biggest partners include:
- Major League Baseball (MLB)
- National Football League (NFL)
- National Basketball Association (NBA)
- National Hockey League (NHL)
- Major League Soccer (MLS)
- NASCAR
- Formula 1
- WWE
- Nippon Professional Baseball (NPB)
Fanatics also developed strategic partnerships with numerous individual international sports teams, such as the Dallas Cowboys, Golden State Warriors, Paris Saint-Germain, Manchester United, Chelsea FC, and Tokyo Giants. The company also has licensing deals with many collegiate athletic programs, including the University of Notre Dame, the University of Alabama, and the University of Texas.
That’s not all. In 2022, Fanatics acquired 75% ownership of Mitchell & Ness. The company produces authentic, throwback-inspired jerseys, shorts, team apparel, and headwear. Jay-Z, Maverick Carter, Meek Mill, Lil Baby, and the D’Amelio family own the remaining 25%. Fanatics also became the majority owner of Lids, a retail store specializing in selling hats, caps, and other headwear. Can you trade Fanatics stock?
Sports Betting and Trading Cards
Fanatics has recently made significant moves into sports betting and trading card markets. It launched its first retail sportsbook in Maryland in 2023. Since then, it has expanded to 19 states (Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Vermont, Virginia and West Virginia). You can find multiple promo codes online for select states and sports.
From 1952 until 2021, Topps exclusively partnered with the MLB to produce and sell players’ trading cards. This partnership ended when Fanatics took over the rights and bought out Topps for $500M.
Fanatics also secured exclusive licensing arrangements with major national professional sports leagues (NASCAR, MLB, NFL, and NBA) and related players’ associations to produce physical and digital trading cards and other collectibles. The could be lucrative for Fanatics stock.
Fanatics Stock of LeBron James
One excellent example is LeBron James. Fanatics has signed an exclusive multi-year trading card partnership with the NBA superstar. This deal marks the end of LeBron’s 20-year relationship with rival trading card company Upper Deck. The deal comes as Fanatics prepares to become the exclusive trading card licensee for the NBA and NBPA starting in 2026.
Entering the Chinese Market
Fanatics’ aspirations don’t end here. The company is looking to establish itself as a leader in an untapped market in China, which might be worth more than $1B. This expansion will benefit its sports partners and individual international sports teams.
European soccer is one of the most popular sports in China. Fanatics will develop an online marketplace, design and launch new retail stores, and develop and manufacture products for Chinese consumers. Maybe we’ll see Fanatics stock on the Chinese market in the future.
Fanatics Competitive Advantage
Many companies operate in the sportswear industry, but Fanatics stands out regarding competitive advantages. The company is slowly taking the entire marketing strategy for many sports leagues and individual teams into its hands. It drives consumer awareness and interactions to an all-time high in global markets.
Another key ingredient to Fanatics’ success is its vertical integration. The company designs, manufactures, and retails all its merchandise online. There are no intermediaries, and the company can control the quality of its merchandise throughout the entire process. Fanatics will immediately produce the goods when your sports team wins a championship.
Lastly, Fanatics has developed a proprietary sales system called “Cloud Commerce” that tracks every click, search, and purchase on its sites and emails, ads, and sales from physical stores. Thanks to this technology, the company can personalize its offerings and improve its customer experience. This could keep Fanatics stock profitable.
Fanatics Stock IPO
Fanatics is slowly preparing for its IPO. We do not have an exact date yet, but it can be expected before summer 2025. The company’s valuation has skyrocketed.
In 2020, it was worth $6.2B; in March 2021, it hit $12.8B and became $18B in August 2021. By December 2022, it reached $31B following a $700M capital raise.
For the moment, Fanatics remains a private company. It is not required to report its earnings to the SEC. However, some sources suggest that Fanatics’ yearly revenue is already over $6B. The company is targeting $10B shortly.
However, we do not know if the company is profitable or not. Its incredible growth and aggressive revenue forecasts suggest that the company’s finances are in good standing. But keep an eye out for Fanatics stock.
Fanatics Stock Competitors
As we mentioned earlier, Fanatics has many competitors. The company hasn’t always been in charge of the sportswear of many sports leagues and individual brands. It is currently well-positioned to maintain its contracts and dominance in the industry, but that could evaporate eventually. Here is a quick look at a few competitors to Fanatic stock in the sportswear space.
1. Nike (NYSE: NKE)
In the past, Nike produced official NHL and NFL jerseys and apparel. However, they are no longer the supplier. In 2024, Nike and Fanatics signed a long-term deal to design and manufacture collegiate sports apparel, sharing the rights to serve many major universities. Under the agreement, Fanatics will make Nike-branded shirts, replica jerseys, and other gear.
Nike has many partnerships with athletes (Michael Jordan, Ronaldo, Serena Williams, LeBron James) and sports teams. Throughout this article, we have seen that the Fanatics management isn’t scared of competition and loves to sign athletes and teams away from competitors. Fanatics stock could be quite the competitor.
2. Adidas (OTCMKRS: ADDYY)
Adidas is a sportswear powerhouse that competes with Fanatics in selling licensed sports team products and apparel. As a result, they have become a great Fanatics stock alternative. Adidas.com offers a wide array of products from teams and athletes sponsored by the brand, appealing to consumers loyal to the Adidas brand and looking for official sports team gear.
There are many noticeable differences regarding the quality of Adidas and Fanatics jerseys. Many fans prefer Adidas sportswear because it feels more authentic, is made with superior and thicker quality, and has added features such as a “fight strap” for NHL jerseys.
In short, Fanatics has a larger market, but Adidas jerseys are considered premium. Each appeals to different sports fans’ markets.
3. Under Armour (NYSE: UA)
Under Armour and Fanatics are also partners, but in the MLB. As part of this deal, Fanatics was granted consumer product licensing rights to manage the manufacturing and distribution of Under Armour and Fanatics fan gear, including jerseys, name and number products, and postseason apparel.
Neither company is a direct competitor, but that may change. Fanatics has a huge hold in the MLB and baseball abroad. They will likely push for an even larger market share in the future.
4. Dick's Sporting Goods (NYSE: DKS)
Dick’s Sporting Goods is also a leading sporting goods retailer that offers an extensive assortment of authentic, high-quality sports equipment, apparel, footwear and accessories.
While Fanatics focuses predominantly on team-specific gear, Dick’s Sporting Goods provides a broader range of sports-related products, including outdoor and fitness equipment. This diversification can attract a wider audience beyond just die-hard team fans.
5. Puma (OTCMKTS: PMMAF)
Puma is a major sportswear brand that offers stylish sports-inspired lifestyle products and team gear, similar to Fanatics. Puma’s emphasis on design and collaborations with celebrities/designers can appeal to a demographic different from the hardcore team fans that Fanatics targets.
Fanatics might try to appeal to a more stylish audience in the future thanks to strategic partnerships with celebrities and higher-quality products.
Final Thoughts: Fanatics Stock
To conclude, Fanatics has rapidly taken over the sports gear world. It has secured exclusive licensing agreements with sports leagues and individual teams. The company plans to keep growing its current business lines and develop new ones, such as the (Chinese market, sports betting, and trading cards).
Many investors are eager to own Fanatics stock but must wait a little longer. The company is planning an IPO in the upcoming months, but the date hasn’t been set yet. If the market conditions remain favorable, it will likely be before the summer of 2025.
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Frequently Asked Questions
Fanatics is projected to go public sometime in 2024 or later in 2025.
Fanatics has grown very quickly since opening its first store in 1995. Its financials remain uncertain because it is a private company, but many believe its revenue in 2023 surpassed $6B. As of April 2024, its valuation surpasses $30B.
Kynetic, led by Michael Rubin, is the major owner of Fanatics.
Nike, Adidas, Under Armour, and Dick's Sporting Goods are some of Fanatics' competitors.
