Fanatics CEO Michael Rubin is looking to sell up to $1 billion of his stake in the sports-merchandise empire as skeptics on Wall Street claim the company’s growth has stalled, according to a report.Despite the glitz and glitter of his parties, however, Fanatics has suffered from a drop in revenue this year that has Rubin looking to sell as much as $1 billion worth of company stock to an outside buyer, according toWriter William D.
A Fanatics spokesperson denied the claim, according to Cohan. The rep insisted that Fanatics is expected to generate $8 billion in revenue this year, which is 14% higher than 2023.Wall Street observers raised eyebrows after Fanatics shelved plans for an initial public offering that was originally scheduled to take place sometime this year, according to Air Mail.
S&P Global predicted that Fanatics would face “challenging operating conditions” in 2024 after parts of the business barely turned a profit in the second quarter of last year.S&P Global also noted that Fanatics’ debt rating had dropped, which put the company at risk of having its credit rating downgraded, according to Air Mail.