The NFL, NFLPA, NHL, MLB, and MLBPA all increased their stakes in Fanatics as part of a recent $1.5 billion funding round, Fanatics has confirmed.
As reported on March 2, Fanatics raised $1.5 billion from a group of investors, including Fidelity Management & Research Co., managed by BlackRock, Inc. and Michael Dell’s family office (MSD Capital LP), valuing the company at $27 billion. The involvement of the sports leagues wasn’t reported at the time.
The NFL led the financing with a $320 million investment, Fanatics confirmed. The NFLPA, MLB, MLBPA, and NHL also increased their equity in the round. Combined, the sports leagues, unions and franchise owners now hold about a 10 percent stake in Fanatics.
New investors, according to CNBC, include the Qatar Investment Authority, the sovereign wealth fund that owns European soccer giant Paris Saint-Germain and Blue Pool Capital, an investment firm backed by Alibaba Co-Founder and Brooklyn Nets owner Joe Tsai.
The funding comes as Fanatics has invested in expanding beyond its core fan gear platform.
Last fall, it announced exclusive trading-card deals with the unions representing the players in Major League Baseball, the National Basketball Association and the National Football League, overturning its longstanding relationship with Topps Co. It also struck trading-card deals with the MLB and the NBA.
Earlier this year, the company acquired Topps trading cards for $500 million. Fanatics’ trading card entity is valued at $10 billion after a $350 million round of funding last September.
Fanatics also launched Candy Digital, selling nonfungible tokens or NFTs. The business, which has dealt with professional sports leagues, was valued at $1.5 billion in October when it raised money from outside investors.
The company also owns half of the hat retailer Lids Sports Group, which it acquired in 2019 and, in February, acquired Mitchell & Ness.
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