Fanatics has agreed to acquire certain assets from Vetta Brands, including Top of the World (TOW), the collegiate headwear license. The move adds headwear to Fanatics‘ vertical manufacturing capabilities and supports its college sports licensing business.
Top of the World’s current president Scott Shuler, who has over three decades of experience in the licensed sports industry, will continue to lead TOW’s business and the TOW brand will continue. He will be joining Fanatics Brands as SVP, reporting to Joe Bozich, president of Fanatics Brands.
The assets being acquired include inventory, college licensing rights and key personnel, according to an e-mail from Fanatics. Vetta Companies’ blank apparel division, which is about half of Vetta’s business, is not being acquired.
Fanatics said the rights from more than 600 schools have consented to Fanatics with the deal. Fanatics paid off all unpaid debt to factories overseas. In addition to headwear rights, Fanatics is adding some apparel and mass channel rights.
As part of the deal, Fanatics will save the Norman, OK-based Top of the World from liquidation and restore more than 200 jobs. On August 17, Vetta Brands began liquidating assets, with Top of the World effectively ceasing operations. The liquidation move was attributed to fallout from COVID-19.
Fanatics is taking over TOW’s 220,000-square-foot manufacturing plant in Norman, OK and adding headwear to its vertical operation. Top of the World has been based in Norman for over 30 years.
Fanatics plans to integrate Top of the World’s headwear manufacturing expertise, inventory and key personnel into the brand, and manufacturing and wholesale apparel division. TOW’s internal team will be combined with Fanatics Brands’ design and apparel division.
Fanatics’ over the last decade has been aggressively building its tech-infused vertical business (v-commerce) model that’s designed in large part to more quickly respond to “hot market” opportunities.
A major step towards that effort was the May 2017 acquisition of Majestic Athletic. Internal manufacturing capabilities have also become more important as Fanatics has secured additional rights to manufacture fan apparel with all of the major sports leagues, plus MLS.
Fanatics also, over the last few years, has reached agreements to become the primary apparel, headwear and hard goods partner to a number of universities including Notre Dame, Miami, Florida, and Oregon
The acquisition comes as Fanatics, in mid-August, raised $350 million in a Series E funding round valuing the online retailer at $6.2 billion, up from $4.5 billion, in its last funding round. The company, which grossed $2.5 billion in 2019, planned to use the funding to accelerate its v-commerce strategy through additional rights acquisition and mergers and acquisitions, according to reports.
Fanatics also operates more than 300 online and offline partner stores including the e-commerce business for all major professional sports leagues (NFL, MLB, NBA, NHL, NASCAR, MLS, PGA) and more than 200 collegiate and professional team properties which include several of the largest global soccer clubs (Manchester United, Real Madrid and Manchester City).
Photo courtesy Fanatics
