Fanatics CEO Michael Rubin, a minority owner of the 76ers, is selling his stake in Harris Blitzer Sports & Entertainment, the company that owns the Sixers and the Devils, he announced Wednesday.
Rubin, who holds a 10% equity stake in HBSE according to ESPN’s Adrian Wojnarowski, said he is divesting his stake in the NBA and NHL franchises after 11 years because of arising conflicts between his growing Fanatics business and the two sports teams.
“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,” Rubin said in a statement posted on Twitter. “With the launch of our trading cards and collectibles business earlier this year—which have individual contracts with thousands of athletes globally—and a soon-to-launch sports betting operation, these new businesses will directly conflict with the ownerships 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.”
Fanatics is a $20 billion-plus company that sells licensed professional and college merchandise online. The expansion into sports betting and individual partnership deals with pro athletes creates numerous conflicts with each league’s collective bargaining rules.
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“Given Michael’s tremendous success growing Fanatics into a global platform across every major sport, his decision doesn’t come as a surprise,” HBSE founder and 76ers managing general partner Josh Harris said in a statement Wednesday. “I am so grateful for his years of partnership. His fierce passion, entrepreneurial mindset and steadfast commitment to doing the right thing have left an indelible mark on the Sixers organization.
“Michael will always be a member of our HBSE and Sixers family, continue to be a presence courtside and a key partner in our collective commitment to be a force for good in Philadelphia.”
After stepping down from his role with the Sixers, Rubin will be eligible to pursue outside financial partnerships with players that were previously disallowed because of his position as part-owner.
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