/https://specials-images.forbesimg.com/imageserve/6112c966228ee00a31a5da1a/0x0.jpg?cropX1=0&cropX2=1662&cropY1=174&cropY2=1109)
ATLANTA, GA – FEBRUARY 02: Fanatics Founder/Executive Chairman Michael Rubin arrives at the … [+]
Getty Images for Fanatics
Michael Rubin, the founder and chairman of popular sports apparel merchandiser Fanatics, is now worth $8 billion after Fanatics closed a $325 million funding round on Monday, Forbes estimates. The latest funding round propelled Fanatics’ valuation from $12.8 billion to $18 billion thanks to new investors like Jay Z and Roc Nation, according to a source familiar with the transaction, pushing Rubin’s net worth up by nearly $2 billion, from $6.2 billion before the round.
Rubin’s fortune has more than doubled over the past year as Fanatics has continued to grow in popularity. In March, the company announced that investors had pumped $320 million into the company at a $12.8 billion valuation, more than double its previous valuation. That drove Rubin’s net worth, which Forbes had estimated at $3.5 billion, up to $6.2 billion. His latest net worth jump means he is now 129% richer than he was in September 2020, when he appeared on The Forbes 400 list of America’s richest people. Forbes estimates that Rubin owns about 43% of the company. A spokesperson for Rubin declined to comment. The Wall Street Journal first reported the fundraising and expansion news on Tuesday morning.
Fanatics, which is primarily a retailer of sports merchandise, plans to use the new funding to expand beyond commerce into sports betting, media and a range of other businesses over which Rubin will assume the role of CEO. To help with the expansion, Rubin has hired Glenn Schiffman, the former chief financial officer of IAC, as chief financial officer; Tucker Kain, the former president of the Los Angeles Dodgers, as chief strategy and growth officer; and Matt King, the former CEO of FanDuel, to head up the sports gambling business. Fanatics is heading into a competitive yet growing sports betting sector, facing competitors including Caesars Entertainment, DraftKings and FanDuel. As of June, DraftKings was running sports betting operations in 14 U.S. states and predicted that the U.S. market could grow to $22 billion annually when all U.S. states allow sports gambling. So far, it’s legal in 21 states and Washington, D.C.