Fanatics bought Mitchell & Ness in February 2022.
Source: Fanatics
Some of the biggest names in sports and entertainment are investing in Fanatics’ lifestyle clothing brand Mitchell & Ness.
Fanatics CEO Michael Rubin said the new ownership group will include LeBron James, Kevin Durant, Chris Paul, CJ McCollum, Devin Booker, James Harden, Joel Embiid, Odell Beckham Jr., Kevin Hart, Rich Paul, Rich Kleiman , Scooter Braun and Steve. Stout.
Established in 1904 in Philadelphia, Mitchell & Ness now makes and sells vintage jerseys and apparel collections for nearly every major sports league. In February, Fanatics bought a 75% stake in Mitchell & Ness with the remaining stake going to a celebrity cohort that included Jay-Z, LeBron James’ business partner Maverick Carter and rapper Meek Mill. The deal valued to Mitchell & Ness for $250 million. Newer investors will be part of this cohort.
Mitchell & Ness is now a $350 million business, having grown 30% this year, Rubin told CNBC. He sees it one day becoming a multi-million dollar brand.
“Adding owners like we did today is a big step in doing that,” he added.
Rubin announced the news on The Wall Street Journal’s Tech Live Tuesday night. The finanacial terms of the contract were not disclosed.
“We’re very excited to have the people who are making culture own and join us in this,” Rubin told CNBC later Tuesday.
Starting out as a sports merchandising company selling t-shirts and jerseys, Fanatics has risen rapidly, becoming a $27 billion sports hub for millions of sports fans. In January it acquired the trading card company Topps and in early 2023 it plans to launch sports betting.
The new owners say they plan to make Mitchell & Ness “the most diverse and culturally relevant consumer brand” through its influence and status as trendsetters.
Jay-Z initially became a fan of the brand due to its timeless appeal. “Fashion is cyclical, but classics are forever. Mitchell & Ness is a true classic,” he said in February. “I’m proud to play a small role in bringing it back and, in some cases, introducing the authenticity and quality of the Mitchell & Ness brand to a new generation,” he added.
Rubin said that Jay-Z was instrumental in bringing this team together and convincing Rubin to buy the brand in the first place. The group was drawn to the opportunity to further influence the culture and appeal of the property.
“Athletes, celebrities and entertainers are fed up with just receiving checks, they want to make money with stocks. They want to be partners in these businesses,” Rubin said.
For LeBron James, Mitchell & Ness holds a special place. When the budding basketball superstar was 16 years old, she saw a man at the airport wearing a Houston Oilers jersey. The two struck up a conversation about it and that’s how James met his former agent Rich Paul.
“LeBron James and Rich Paul bonded over their love for Mitchell & Ness,” Rubin said.
Fanatics has used its customer database of over 94 million sports fans to attract new fans to grow the Michell and Ness business. In June, Mitchell & Ness signed a rights agreement to manufacture products for all 32 NHL teams.
Fanatics says that men’s and women’s streetwear and authentic nostalgic apparel are some of the fastest growing areas within Fanatics Commerce’s business.
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Source: news.google.com