At a press event Tuesday at Majestic Athletic’s headquarters in Easton, PA, officials from Fanatics, Major League Baseball, Majestic as well as local legislators heralded a deal that would keep production of MLB uniforms and fanwear at the Majestic facility well beyond the 2019 season.
The plant’s approximately 600 workers had feared that they would lose their jobs after Majestic’s license with Major League Baseball (MLB) to produce all the on-field uniforms, as well as replica and other fanwear, expired on December 31, 2019.
In June 2016, VF Corp. said it had put its Licensing Sports Group (LSG) business, which included Majestic, on the selling block. But tensions escalated in December 2016 after MLB announced a 10-year partnership making Under Armour its new uniform provider, starting in 2020.
A few days after the deal was announced, VF said it was in ongoing, productive talks with MLB with a collective goal to ensure that VF’s Easton, PA facility continues to produce on-field uniforms for MLB “for a very long time.” Under Armour faced calls from numerous parties to subcontract work to the plant.
Rallies were subsequently held, including one orchestrated by the Workers United National Convention in Philadelphia in early March, to preserve the workers’ jobs. Easton Mayor Sal Panto Jr. even appealed to President Trump to move some of his family’s clothing-manufacturing contracts with foreign companies to Majestic’s plant.
But relief arrived at 9 a.m. on Tuesday after workers were told that VF had reached a deal to sell Majestic to Fanatics with a plan to keep manufacturing MLB uniforms – including on-field uniforms – at the plant. The media event in early afternoon brought out Baseball Commissioner Robert D. Manfred Jr.; Fanatics Owner and Executive Chairman Michael Rubin; Majestic President Mike Pardini; Pennsylvania Governor Tom Wolf and Pennsylvania Attorney General Josh Shapiro.
The deal is expected to close during the second quarter. Terms have not been disclosed.
“I want to start by congratulating two of our great partners, Mike Pardini and Michael Rubin, for making an agreement that insures that Major League Baseball uniforms will continue to be made right here in Easton, Pennsylvania, the United States of America,” said Manfred at the event. “Our fans and our players have a unique bond with the uniforms that they wear. And, in fact, our uniforms stir emotions among people. Because you cater to that emotion with the quality work you (employees) do each and every day you are, and shall remain, a part of the baseball family.”
While Under Armour officials did not attend the news conference, the company confirmed that the Palmer facility will be used for on-field uniform production in 2020 and beyond.
“The men and women of Easton will continue to play a major role in building Under Armour’s MLB team apparel business,” Under Armour said in a statement. “Under Armour is both committed to and proud of the tradition of manufacturing MLB on-field uniforms in the United States.”
The Under Armour logo will still replace Majestic on player uniforms.
Fanatics, the largest online sports retailer in the U.S., was a partner with Under Armour in the new MLB deal. While Under Armour will become the exclusive MLB provider of all on-field uniforms, Fanatics will be granted broad consumer product licensing rights to manage the manufacturing and distribution of Under Armour and Fanatics fan gear, which include jerseys at retail, name and number products and postseason apparel.
“Mike (Pardini) I want to welcome you and the entire Majestic team to the Fanatics family,” said Rubin at the event. “We’ve actually worked with you very closely for the last 15 years, and what I’ve taken away from the last 15 years is what an incredible and impressive business you’ve built.”
He added, “I also want to thank you (Commissioner Manfred) for our longstanding partnership and, most of all, for your continued focus on growing the sport of baseball. We’re also incredibly proud of the craftsmanship that goes into a Major League Baseball jersey and that we’re going to continue to have this be a Made in America product.”
Rubin also noted that Fanatics is expanding quickly, growing from $300 million in 2010 to $1.4 billion in revenue last year. As a result, Rubin said, there’s a “very good possibility” the facility would receive more work moving forward. The facility would support Fanatic’s quick-turn capabilities and overall “hot market” opportunities.
“We’re very focused on how do we grow and innovate the business and, certainly, we look at this organization, with 600 team members here, as a way to help us to grow the business,” Rubin said. “So we expect to keep everybody very busy.”
The Fanatics that exists today was founded in 2012, when entrepreneur and e-commerce visionary Rubin combined Fanatics with all the sports leagues’ e-commerce from his former company, GSI Commerce. Rubin had sold GSI eBay in 2011 but kept the Fanatics business. Operationally, Fanatics is now led by Silicon Valley veteran Doug Mack, who became CEO in April 2014. Beyond fanatics.com, the business includes the FansEdge and Kitbag e-commerce sites and also sells sports collectibles and memorabilia through Fanatics Authentic. Fanatics also operates the NBA flagship store in New York City.
Majestic got its start when it pioneered the batting practice jersey, a baseball shirt worn only for pre-game warm-ups. In August 2013, the brand won a five-year contract, starting in 2005, as the exclusive supplier of uniforms, jackets, T-shirts, fleece and turtlenecks to all 30 big-league teams. At the time of the announcement, Majestic made official jerseys for 15 MLB teams, while Russell Corp. handled the remaining 15 clubs.
“There is a lot that we should be proud of, as far as the work that’s done in this facility,” said Majetics’ Pardini. “We’ve got talented, committed and passionate associates across the board. They’re best in class and they have been for quite some time.”
He added, “The fact that it’s being made right here, in the Easton facility, for all 30 clubs as far as the on-field uniform, that’s a big deal and it’s something we’re proud of. So we look forward to this future and the rich history we already have with Major League Baseball.”
Pennsylvania Governor Wolfe said, “This is a great day for all of us here in Pennsylvania. This is a really smart choice, Michael (Rubin), to continue to make these high-quality items right here in Pennsylvania.”
“This is a great day for Pennsylvania,” added Pennsylvania Attorney General Josh Shapiro. “This is a great day for the Lehigh Valley and it’s a great day for the Fanatics team.”
“I want to thank Michael (Rubin) for his commitment to the Commonwealth, for keeping these jobs here. He’s committed to the workers here in the Commonwealth. He understands that good business requires good people to go out and do the work each and every day.”
State Sen. Lisa Boscola, D-Lehigh/Northampton, attended Tuesday’s announcement, as did representatives U.S. Rep. Matt Cartwright, a Democrat whose 17th District covers parts of Northampton County, and U.S. Sens. Bob Casey, D-Pa., and Pat Toomey, R-Pa.
Staff members for Senators Bob Casey and Pat Toomey, State Sen. Lisa Boscola and Congressman Matt Cartwright were also in attendance.
After the news conference, the principles took a tour of the 360,000-square-foot building. As they walked, they passed under a banner with the Majestic logo. Underneath were the words: Always Baseball.
Photos courtesy Fanatics