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The billionaire founder and chief executive of sports merchandising group Fanatics expects the company’s revenue from trading cards to reach up to $3bn next year, as it expands aggressively into international markets.
Michael Rubin told the FT that Fanatics’ collectibles business — which encompasses trading cards and sticker books — is still riding a wave that began during pandemic lockdowns. A combination of boredom and increased disposable income sparked a surge in demand for sports collectibles.
“I feel like we’re just getting going,” he said inside the first Fanatics trading card store, which opened on London’s Regent Street on Friday. “In America, only a small single-digit percentage of people collect cards. It’s way less than 1 per cent outside of America. So I think there’s a lot of growth ahead.”
Fanatics’ success in collectibles will hinge on whether global sports fans will adopt the habits of their American counterparts, who have bought and sold trading cards for decades.
Fanatics has built up its collectibles business since the $500mn purchase of Topps trading cards in 2022. The Florida-based company reported collectibles revenue of $1.6bn last year, and is on track to top $2bn this year before “approaching $3bn” in 2026, Rubin said.
Fanatics is backed by Chelsea FC co-owners Clearlake Capital, the Qatar Investment Authority, SoftBank and rapper Jay-Z. The privately owned company, last valued at $25bn, has also attracted investment from the National Football League, Major League Baseball and the National Hockey League.
Revenue across the wider Fanatics group is set to top $9bn this year, and $11bn next year, Rubin added. The company reported revenue last year of $8.1bn. However, profits are being held back by an investment of at least $1bn into building its US sports betting business over the past few years.
Rubin, who is known for cultivating close relationships with athletes and celebrities, enlisted Formula 1 racing driver Lewis Hamilton to cut the ribbon on Fanatics’ first collectibles store.
“This is marketing for us,” Rubin said of the London outlet. “We want to use this to show other entrepreneurs how to open hobby shops . . . This is all about showing people what the store should look like [and] how it should work.”
In the US, the company relies instead on hundreds of “hobby shops” across the country to distribute its products.
Fanatics has focused on expanding Topps internationally through partnerships with major sports leagues. In June, it will take on exclusive rights to English Premier League trading cards and stickers from rival Panini, adding to rights it holds for the Uefa Champions League and F1.
While rare historic trading cards still fetch the highest prices — a 1952 card of Micky Mantle, centre fielder for the New York Yankees, fetched $12.6mn in 2022 — modern cards can sell for large sums, too. In March, a card featuring a patch from the playing jersey of Pittsburgh Pirates baseball player Paul Skenes sold at auction for more than $1.1mn.
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