Popular Philadelphia 76ers minority owner Michael Rubin will be selling his ten percent stake in the company that owns the Sixers and New Jersey Devils, he announced in a letter to fans Wednesday.
The CEO of Fanatics, a licensed sports merchandise behemoth, Rubin explained that the expansion of his company into other businesses, including sports betting, creates a conflict of interest for him as a team owner.
“As our Fanatics business has grown, so too have the obstacles I have to navigate to ensure our businesses don’t conflict with my responsibilities as part-owner of the Sixers,” Rubin said. “With the launch of our trading cards and collectibles business this year – which will have individual contracts with thousands of athletes globally – and a soon-to-launch sports betting operation, these new businesses will directly conflict with the ownership rules of sports leagues.
“Given these realities, I will sadly be selling my stake in the Sixers and shifting from part-owner back to life-long fan.”
Thank you, @sixers fans ❤️ pic.twitter.com/46YX0Zoahm
— Michael Rubin (@michaelrubin) June 22, 2022
Michael Rubin is selling his 10% ownership stake in HBSE, the company that owns the 76ers and Devils, in a deal valued at at approximately $300 million.
Fanatics' player partnerships and anticipated gambling division interfere with team ownership rules.
(h/t @Sportico) pic.twitter.com/vKbVDo6gKP
— Boardroom (@boardroom) June 22, 2022
Last June, Fanatics hired former FanDuel CEO Matt King to lead its expansion into online sports betting and gaming. The New York Post reported that the company had been laying the groundwork for a move into gaming several months prior to the hire.
