Michael Rubin at NRF on How Fanatics Is Reinventing Sports Commerce

Michael Rubin Says Fanatics Is Still a Startup, Even at $13 Billion in Revenue

When Michael Rubin, Founder and CEO of Fanatics, joined CNBC's Sarah Eisen on stage at NRF, his message was direct and consistent with his reputation. Scale does not change the mindset. Scrappiness does not go away. And competition never stops.

Fanatics is now a $13 billion annual revenue business with more than 22,000 employees, but Rubin says the company still operates like a startup by necessity. "If you are not scrappy, you are dead," he told the audience, emphasizing that every Fanatics business faces intense competition.

How Fanatics Evolved Beyond Merchandise

Fanatics began as a licensed sports merchandise company, but Rubin explained that the company has intentionally transformed into a digital sports platform serving more than 140 million customers globally.

Today, Fanatics operates three major businesses:

• Licensed merchandise and commerce, a roughly $7 billion business
• Collectibles and trading cards, now a $4 billion business
• Sports betting and gaming, a $2 billion business launched just a few years ago

Across all three, Rubin stressed the same principle. Fanatics must materially improve the experience for fans while building businesses capable of generating billions in long-term profit.

Competing With Amazon and Growing the Market

Despite its scale, Rubin rejected the idea that Fanatics owns its category. Licensed sports merchandise is a $25 to $30 billion global market, and Fanatics currently represents roughly a third of it.

The competition includes Amazon, global brands like Nike, league partners, and countless niche players. Fanatics differentiates itself by operating thousands of ecommerce stores for leagues, teams, and colleges, owning brands like Mitchell & Ness, and running more than 1,400 Lids retail locations.

Rather than focusing only on market share, Rubin said the priority is expanding the overall category. "The most important thing we do is grow the market," he said.

Fanatics Sportsbook and the Power of Ecosystems

One of the most notable growth stories Rubin shared was Fanatics Sportsbook, which entered a market long dominated by DraftKings and FanDuel.

Fanatics focused on differentiation, not advertising scale. Key innovations include:

• FanCash, a rewards currency usable across Fanatics betting, merchandise, collectibles, Lids stores, tickets, and partners
• Player injury protection on certain bets
• Tight integration with the broader Fanatics ecosystem

The results have been significant. Fanatics Sportsbook grew from zero revenue in 2023 to more than $850 million in revenue in 2024, with $50 billion in bets projected this year. Rubin said the company expects betting to become its largest and most profitable business by 2030.

Predictions Markets and Regulatory Reality

Rubin also addressed Fanatics' move into predictions markets, particularly in states where traditional sports betting is not legalized. While he does not view predictions as the future of sports betting, he sees them as an important complementary format.

His critique was blunt. States that block legalized betting while allowing unregulated alternatives are pushing consumers into less controlled environments. Fanatics, he said, will offer whatever formats fans want, as long as regulations allow.

Fanatics Is Launching a Sports-Focused Credit Card

In one of the session's biggest revelations, Rubin confirmed that Fanatics will launch a credit card later this spring. The card is designed specifically for sports fans and tightly integrated into the Fanatics ecosystem.

Benefits are expected to include:

• FanCash rewards
• Early access to collectibles and events
• Exclusive experiences tied to leagues, athletes, and Fanatics Fest

Rubin believes the credit card can become Fanatics' fourth billion-dollar business, further locking fans into the platform.

Relationships, Access, and the Business of Sports Culture

From Fanatics Fest, which draws more than 200,000 fans, to partnerships with athletes and entertainers like LeBron James, Tom Brady, and Jay-Z, Rubin emphasized that access and relationships are core strategic assets.

Rather than traditional sponsorships, Fanatics works with partners to elevate the brands and businesses that matter most to them. Many of those partners are also investors, creating deep alignment across commerce, media, and fandom.

The Takeaway for Retail Leaders

Rubin closed with a message that resonated far beyond sports retail. The future belongs to companies that:

• Stay founder-led in mindset
• Build ecosystems, not single products
• Obsess over customer value
• Are willing to enter crowded markets and disrupt them

Fanatics, he said, is still at the beginning. And for retailers watching the sports industry, the playbook Rubin outlined at NRF offers lessons well beyond jerseys and trading cards.