If you’re a sports fan, chances are you’ve bought something from Fanatics—whether it’s an official team jersey, a collectible, or even a sports betting slip. But what started as a small online retailer has exploded into a $25 billion powerhouse that dominates sports merchandise, collectibles, and now even betting.
At the center of it all is Michael Rubin, the relentless entrepreneur who transformed Fanatics from just another sports retailer into an empire. And despite its massive success, Rubin – in an interview with Guy Raz on the popular show “How I Built This” – insists that Fanatics is still just getting started.
What makes Fanatics different? How did Rubin disrupt the industry? And why is he betting big on sports collectibles and gambling? Let’s break down how one man’s vision and obsession with innovation turned Fanatics into a global juggernaut.
From Small Business to Sports Giant: The Origins of Fanatics
Before Fanatics became the behemoth it is today, it was just a brick-and-mortar store in Jacksonville, Florida, started by two brothers. The company specialized in college sports apparel, but as e-commerce grew, Fanatics pivoted to online sales.
Enter Michael Rubin.
By 2011, Rubin had already built and sold GSI Commerce, an e-commerce company that ran online operations for big brands. When eBay acquired GSI for $2.4 billion, Rubin saw an opportunity: Fanatics was one of the few businesses that eBay didn’t want, so he bought it back for $330 million and went all-in.
At the time, Fanatics was just another retailer selling third-party sports apparel—buying from brands like Nike, Adidas, and Majestic and reselling it. Rubin knew that wasn’t a sustainable advantage. He envisioned something bigger:
✅ Full control over production, distribution, and sales
✅ Exclusive deals with sports leagues and teams
✅ A direct-to-consumer powerhouse that could move faster than traditional retailers
That’s when Fanatics transformed from a simple online store into a vertically integrated sports empire.
Why Fanatics Dominates: Owning the Supply Chain
Rubin didn’t just want to sell sports merchandise—he wanted to control every aspect of it.
By securing exclusive licensing deals with the NFL, NBA, MLB, NHL, and NCAA, Fanatics became the go-to source for official team gear. Instead of just reselling third-party products, they now controlled:
🔹 Manufacturing – Fanatics produces many of its own products, reducing reliance on brands like Nike and Adidas.
🔹 Distribution – The company handles its own logistics, allowing it to fulfill orders at record speed.
🔹 Retail & E-Commerce – With exclusive rights to sell official league merchandise, Fanatics effectively eliminated much of its competition.
This vertical integration is the key to Fanatics’ dominance. Instead of waiting for suppliers, they create products in real-time, responding instantly to sports moments.
The Fanatics Secret Sauce: Real-Time Merchandising
Imagine this:
🔥 A baseball player just broke a home run record.
⚡ Fanatics designs, manufactures, and sells custom gear celebrating the moment—all within hours.
📦 Orders are fulfilled in record time, giving fans instant access to fresh merchandise.
This ability to react in real-time is what separates Fanatics from traditional sports retailers. Rubin built a tech-driven operation that allows Fanatics to move faster than anyone else in the industry.
A perfect example? When Shohei Ohtani signed with the Los Angeles Dodgers, Fanatics was ready to meet demand instantly. Rubin estimates that just in the final months of 2023, Fanatics will serve over a million Dodgers fans looking for Ohtani gear.
That’s the Fanatics advantage—while other retailers scramble, they’re already shipping.
Beyond Merchandise: Betting Big on Sports Collectibles & Gambling
Rubin’s vision for Fanatics doesn’t stop at jerseys and hats. He sees Fanatics as a sports experience company, which is why he’s aggressively expanding into collectibles and sports betting.
🎟️ Trading Cards – Fanatics acquired Topps, securing exclusive trading card deals with the NFL, NBA, MLB, and others. With the sports card industry booming, Fanatics is redefining how collectibles are made and sold.
🎰 Sports Betting – Fanatics is taking on giants like DraftKings and FanDuel by entering the $100 billion sports gambling industry. Why? Because they already have millions of loyal sports fans buying merchandise. The next step? Offering them betting options directly on Fanatics’ platform.
Rubin thrives on competition, and he knows that taking on gambling giants will be a challenge. But that’s exactly what fuels him.
“People are betting against us? Great. I love being the underdog.”
What Entrepreneurs Can Learn from Michael Rubin
Beyond his business acumen, Rubin’s mindset is what makes him unstoppable. Here are three major lessons every entrepreneur can take from his journey:
1. Own Your Industry by Controlling the Supply Chain
Rubin transformed Fanatics by vertically integrating—instead of just selling sports gear, he made it.
👉 Lesson: Don’t just compete—control the key aspects of your industry.
2. Move Faster Than Everyone Else
The real-time sports merchandise model allows Fanatics to capitalize on every major sports moment.
👉 Lesson: Speed wins. Being first to market matters.
3. Embrace Setbacks and Keep Evolving
When Fanatics faced major backlash over MLB’s new uniforms, Rubin didn’t make excuses. Instead, he saw it as a lesson in how to improve.
👉 Lesson: Mistakes are inevitable, but how you respond defines your success.
Conclusion: Fanatics Is Just Getting Started
From a struggling student with ADD to a $25 billion empire, Michael Rubin has built something remarkable. But despite Fanatics’ dominance, he still operates like it’s a startup—always looking for the next opportunity, always evolving.
Whether it’s sports collectibles, gambling, or new innovations in fan engagement, Rubin isn’t slowing down.
As he put it:
“If you’re satisfied, you’re dead.”
And for Michael Rubin, Fanatics is far from satisfied.
