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Michael Rubin (businessman)

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Michael Rubin
Rubin in 2019
Born
Michael G. Rubin

(1972-07-21) July 21, 1972 (age 52)
CitizenshipUnited States
Occupation(s)CEO of Fanatics, Executive Chairman Rue Gilt Groupe,
Co-chair Reform Alliance
Known forFounding GSI Commerce (1998),
All In Challenge (2020)
SpouseMeegan Rubin (divorced)
Children3

Michael G. Rubin (born July 21, 1972) is an American businessman. He is the CEO of Fanatics,[1][2] the world's leading provider of licensed sports merchandise;[3][4][5] and executive chairman of Rue Gilt Groupe, an e-commerce portfolio company, which includes RueLaLa.com, Gilt.com, and ShopPremiumOutlets.com.[5] He previously founded GSI Commerce in 1998, selling it to eBay in 2011 for $2.4 billion.[6]

Rubin was a partner of the Philadelphia 76ers basketball team from 2011 and the New Jersey Devils hockey team from 2013 before selling his stakes in Harris Blitzer Sports & Entertainment, the holding company of both, in June 2022 to focus on the expansion of Fanatics. He is also the co-chair of the REFORM Alliance, a criminal justice reform organization that he launched in January 2019, together with Jay-Z, Meek Mill, Robert Kraft, and Daniel S. Loeb, among others.[7][8][9]

Rubin has been included in the Forbes 400: The Richest People in America, the Forbes: The World's Billionaires list, and the Bloomberg Billionaires Index.[10][11][12] His wealth, as of November 2022, was valued at $10.2 billion.[13]

Early life and education

Rubin was born to a Jewish family, the son of Paulette and Ken Rubin.[14] His mother was a psychiatrist and his father was a veterinarian .[15] He grew up in Lafayette Hill, Pennsylvania, where he started a ski-tuning shop in his parents' basement when he was 12 and two years later, using $2,500 in bar mitzvah gifts as seed capital and a lease signed by his father, he opened a formal ski shop in Conshohocken, Pennsylvania, named Mike's Ski and Sport.[16][14]

By the age of 16, he was some $120,000 in debt and was able to settle with his creditors using a $37,000 loan from his father under the condition he attend college.[14] Rubin agreed, continuing to operate the business, which grew to five ski shops before he entered college.[14] He attended Villanova University[15] for a semester before dropping out after realizing a large gain on an opportunistic transaction. This involved buying $200,000 in overstock equipment at a deep discount with $17,000 borrowed from a friend and re-selling it for $75,000.[14]

Career

Using the proceeds from his serendipitous overstock transaction and after selling his ski shops, he went on to found the athletic equipment closeout company KPR sports—named after his parents' initials—which bought and sold over-stock name brand merchandise.[14] In 1993, the year Rubin turned 21, KPR reached $1 million in annual sales;[15] by 1995, KPR reached $50 million in sales.[14] In 1995, Rubin purchased 40% of the women's athletic shoe manufacturer Rykä.[14]

In 1998, Rubin created an apparel and logistics company, Global Sports Incorporated, which would later turn into GSI Commerce, a multibillion-dollar e-commerce company.[17][18] At 38, in 2011, Rubin sold GSI to eBay for $2.4 billion reaping a $150 million windfall.[19][20] As eBay just wanted the order fulfillment business for large retailers so it could better compete with Amazon.com, Rubin was able to buy back the consumer businesses of GSI at a fire sale price.[20] He repurchased: Fanatics, Inc., a licensed sports merchandiser; Rue La La, a flash seller, and ShopRunner, a retail benefits program.[20] Rubin serves as CEO of Fanatics and as executive chairman on Rue La La's board.[20] In 2019, it was announced on CNBC that Simon Property Group would team up with Rubin to take their mall inventory online and contribute $280 million to the venture.[21][22] In December 2020, ShopRunner was sold to FedEx.[23]

Rubin has orchestrated partnership deals for Fanatics with more than 300 professional leagues, sports and teams,[24] including deals with Nike, the National Football League and Major League Baseball that granted Fanatics the rights to design, manufacture and distribute all Nike fan gear for both leagues.[25][26] At the onset of the COVID-19 pandemic in early 2020, Rubin shut down a Fanatics' MLB uniform manufacturing plant to generate hospital gowns and PPE for frontline workers.[18] In August 2020, he secured $350 million Series E funding for Fanatics that raised the valuation of the company to $6.2 billion.[27]

In March 2021, Rubin and Fanatics secured a $320 million funding round,[28] followed by another $325 million in August 2021 that brought the company's valuation to $18 billion as of September 2021. During the latter funding round, it was announced that Rubin would transition to the role of CEO of a new, larger Fanatics company that would expand beyond merchandising into new sports verticals in order to create a global digital sports platform.[29] It was reported that these verticals may include NFTs, a space Rubin entered in May 2021 by co-founding digital collectibles company Candy Digital;[30] sports betting and gaming; trading cards, ticketing and media.[29][31]

Philadelphia 76ers and New Jersey Devils stake

In October 2011, Rubin bought a minority share in the Philadelphia 76ers.[32] Rubin was a member of the investment group that won a $280 million bid for the team led by Josh Harris and David Blitzer. Other notable members include Art Wrubel, Jason Levien, Adam Aron, Martin J. Geller, David B. Heller, James Lassiter, Will Smith, Jada Pinkett Smith, and Erick Thohir.[33][34][35] The NBA formally approved the deal on October 13, 2011.[36]

In 2013, as a member of another investment group led by Harris and Blitzer, Rubin bought a share in the New Jersey Devils and the Prudential Center for $320 million.[37] In 2022, Rubin sold his stakes in Harris Blitzer Sports & Entertainment, the holding company of both teams, to David J. Adelman due to a conflict of interest regarding Fanatics' growing sports betting business and player partnerships.[38][39]

Media appearances

In addition to appearing in Forbes, Rubin has been interviewed or quoted in The Wall Street Journal, The New York Times, Fortune, Entrepreneur, People Magazine, and Sports Illustrated.[14][40][41][42][43][44][45]

Rubin has also been featured on Dateline NBC, Good Morning America and CNN.[46][47][48]

In 2010, he appeared in the premiere season of the CBS television show Undercover Boss, where he worked undercover in GSI Commerce's warehouse and call center. Once his identity was revealed at the end of the show, he gave an employee, who had recently struggled with the death of a baby, $10,000 so he and the baby's mother could have a dream wedding.[15]

Rubin has been a featured speaker and panelist at e-commerce and sports industry events including the MIT Sloan Sports Analytics Conferences, the Wharton Sports Business Summit, Recode's Code Commerce, and the Fast Company Innovation Festival.[49][50][51][52]

Accolades

Rubin was honored by the Network for Teaching Entrepreneurship (NFTE) at its Philadelphia Visionary Gala in 2011 for representing "the true spirit and determination of an entrepreneur" and serving as an inspiration to NFTE students.[53]

In 2011, Forbes named him one of the year's "20 Most Powerful CEOs 40 and Under."[54]

In 2018 Rubin was named to the inaugural Bleacher Report "Power 50" list of most influential people in sports.[55] Rubin was included in Sports Business Journal's "Top 50 Most Influential People in Sports Business" every year between 2015 and 2019.[56][57][58][59][60]

Additionally, in 2021, Rubin was named Sports Business Journal's "Most Influential Person in Sports Business"[61] and in 2022 was named their "Sports Executive of the Year."[62]

Personal life

An avid sports fan since his youth, Rubin splits his time between the Philadelphia area, near where he grew up,[14][63] and New York City, where in 2018 it was reported that he purchased a $43.5 million penthouse.[64]

Rubin is divorced from local dance teacher Meegan Rubin. They have one daughter.[65][66] Rubin had a second daughter with professional model Camille Fishel in July 2020.[67] Rubin formerly dated television news anchor and author Nicole Lapin.[68]

Rubin started the viral "All In Challenge", which raised more than $60 million to fight food insecurity during the COVID-19 pandemic.[69][70][71] In January 2023, Rubin announced that Fanatics, the NFL and NFLPA would donate all proceeds from Buffalo Bills safety Damar Hamlin's jersey sales to Hamlin's Chasing M's foundation after Hamlin suffered cardiac arrest in a game against the Cincinnati Bengals.[72]

Since 2021, Rubin has hosted an annual "white party" at his estate in The Hamptons for Independence Day, attended by many athletes and celebrities including Jay-Z and Beyoncé, Justin Bieber, Tom Brady, and Kim Kardashian.[73]

References

  1. ^ Bobrowsky, Meghan (August 10, 2021). "WSJ News Exclusive | Fanatics Valuation Rises to $18 Billion as It Plans to Expand Sports Offerings". Wall Street Journal. ISSN 0099-9660. Retrieved September 5, 2021.
  2. ^ "Michael Rubin". Forbes.
  3. ^ Badenhausen, Kurt. "Neymar And Brazil Have The Best-Selling World Cup Jerseys In U.S." Forbes. Retrieved August 4, 2015.
  4. ^ Burns, Mark (June 13, 2014). "World Cup 2014: Merchandise sales spike as games begin". Sporting News. Retrieved August 4, 2015.
  5. ^ a b Belson, Ken (September 20, 2013). "Ensuring Team Items Are Just a Click Away". The New York Times.
  6. ^ Colao, J.J. (November 19, 2012). "Newly-Minted Billionaire Is Spinning eBay Scraps Into Gold". Forbes. Retrieved July 20, 2015.
  7. ^ "REFORM Alliance".
  8. ^ "Meek Mill, Jay-Z & Sixers Co-Owner Michael Rubin Launch New Criminal Justice Reform Organization". Billboard.
  9. ^ "With Prisoners Facing New Risks, a Nonprofit Rallies Donors—Including a Tech Billionaire". June 25, 2020.
  10. ^ "The Forbes 400: The Richest People in America 2014". Forbes. Retrieved July 20, 2015.
  11. ^ "Forbes: The World's Billionaires, The Richest People on the Planet, 2015 Ranking". Forbes. Retrieved July 20, 2015.
  12. ^ "Dealmaker Who Beat Topps for Baseball Cards Is Worth $8 Billion". Bloomberg. Retrieved September 17, 2021.
  13. ^ "Michael Rubin". Forbes. Retrieved November 17, 2022.
  14. ^ a b c d e f g h i j Neil, Michael (October 2, 1995). "Sneaker Stud". People. Retrieved November 4, 2011.
  15. ^ a b c d AOL: "Very Different Kind of Undercover Boss" By Lisa Johnson Mandell March 20, 2010
  16. ^ Huang, Patricia (July 6, 2006). "America's Youngest CEOs". Forbes. Retrieved November 4, 2011.
  17. ^ Liberman, Noah (November 5, 2001). "Michael Rubin Profile". Sports Business Daily. Retrieved May 26, 2012.
  18. ^ a b Lynch, John. "The dynamic career and life of Michael Rubin — billionaire team partner, friend of high-profile rappers, and criminal-justice reform advocate". Business Insider. Retrieved June 16, 2021.
  19. ^ DiStefano, Joseph (September 12, 2011). "Facebook, Zynga, Groupon ... and Philly's Kynetic". The Philadelphia Inquirer. Retrieved July 28, 2015.
  20. ^ a b c d Forbes: "Newly-Minted Billionaire Is Spinning eBay Scraps Into Gold" November 19, 2012
  21. ^ "Simon Property Group and Michael Rubin Partner".
  22. ^ Colao, J. J. "Newly-Minted Billionaire Is Spinning eBay Scraps Into Gold". Forbes. Retrieved September 6, 2021.
  23. ^ Pletz, John (July 20, 2021). "What FedEx paid for ShopRunner". Crain's Chicago Business. Retrieved September 6, 2021.
  24. ^ "Michael Rubin's Fanatics now valued at $6.2 billion after latest Series e funding round". CNBC. August 13, 2020.
  25. ^ Belson, Ken (May 23, 2018). "The NFL and Nike Make Room for Fanatics". The New York Times. Retrieved September 23, 2021.
  26. ^ "MLB Officially Partners With Nike And Fanatics; Nike To Be Official Uniform And Footwear Provider". Forbes. Retrieved September 23, 2021.
  27. ^ Herrera, Sebastian (August 13, 2020). "Web Retailer Fanatics Raises $350 Million Amid Rebound in IPO Market". Wall Street Journal.
  28. ^ "Fanatics valuation doubles to $12.8 billion after a new funding round". CNBC. March 24, 2021. Retrieved September 23, 2021.
  29. ^ a b Bobrowsky, Meghan (August 10, 2021). "Fanatics Valuation Rises to $18 Billion as It Plans to Expand Sports Offerings". The Wall Street Journal. Retrieved September 23, 2021.
  30. ^ "MLB launches into NFT space with help from Lou Gehrig and new company led by Fanatics". CNBC. June 2021. Retrieved September 23, 2021.
  31. ^ "Report: Fanatics Strikes Again, Set To Become Exclusive Licensee For NBA Trading Cards". Forbes. Retrieved September 24, 2021.
  32. ^ "Indonesian businessman first Asian to own NBA team". The Star. October 20, 2011.
  33. ^ Philadelphia Inquirer: "Those who know him say Joshua Harris, soon-to-be Sixers owner, lives for competition and success" By Kate Fagan August 2, 2011
  34. ^ ESPN: "Group led by Joshua Harris completes purchase of Sixers" Archived October 18, 2013, at the Wayback Machine October 18, 2011
  35. ^ Sale of 76ers to Joshua Harris finished. ESPN, July 13, 2011.
  36. ^ Group led by Joshua Harris completes purchase of 76ers Archived October 18, 2013, at the Wayback Machine. Philadelphia 76ers, October 13, 2011.
  37. ^ "Devil's Announce Sale of Team". NJ.com. August 15, 2013. Retrieved July 22, 2015.
  38. ^ Wojnarowski, Adrian (June 22, 2022). "Fanatics CEO Michael Rubin selling stake in company that owns Philadelphia 76ers, New Jersey Devils". ESPN. Retrieved June 23, 2022.
  39. ^ Pompey, Keith (October 20, 2022). "David Adelman purchases share of Michael Rubin's HBSE stake to become Sixers limited partner: 'I'm excited to be involved in a small way'". www.inquirer.com. Retrieved October 23, 2022.
  40. ^ Bensinger, Greg (June 6, 2013). "Score! Web Sports Retailer Fanatics Inc. Tops $3 Billion Valuation". The Wall Street Journal.
  41. ^ Zipkin, Amy (August 7, 2010). "Trust Your Instincts". The New York Times.
  42. ^ "How Fanatics Scored on LeBron James (and Why It's Winning in Sports Retail)". Fortune. Retrieved September 24, 2021.
  43. ^ "The Brilliance of Failure, In the Words of a Self-Made Billionaire". Entrepreneur.com. December 4, 2013.
  44. ^ "Self-Made Billionaire Michael Rubin: E-Commerce is Rapidly Changing". Entrepreneur.com. Entrepreneur. November 27, 2013. Retrieved July 22, 2015.
  45. ^ "Fulfilling Fanatic". Sports Illustrated. Retrieved September 24, 2021.
  46. ^ "Dreams and Nightmares: The Meek Mill Story". Dateline NBC via Facebook. Retrieved September 24, 2021.
  47. ^ "Stars offer once-in-a-lifetime experiences with 'All-In Challenge'". ABC News. Retrieved September 24, 2021.
  48. ^ "Major League Baseball and Fanatics sportswear teaming up to make medical gear". CNN. March 26, 2020. Retrieved September 24, 2021.
  49. ^ "8th Annual MIT Sloan Sports Analytics Conference". MIT. Archived from the original on August 10, 2015. Retrieved July 28, 2015.
  50. ^ "Michael Rubin on what makes him paranoid and if he wants to be majority owner of a sports team". Wharton School of the University of Pennsylvania. November 13, 2019. Retrieved September 24, 2021.
  51. ^ "Watch Recode's full interview with NBA Commissioner Adam Silver and Fanatics' Michael Rubin". Vox. September 12, 2017. Retrieved September 24, 2021.
  52. ^ "This is how Meek Mill plans to change the criminal justice system". Fast Company. Retrieved September 24, 2021.
  53. ^ "NFTE Philadelphia to Honor Michael G. Rubin at Annual Visionary Gala". BusinessWire. Network for Technology Education. May 10, 2011. Retrieved July 22, 2015.
  54. ^ Smith, Jacquelyn (February 14, 2011). "20 Most Powerful CEOs 40 and Under". Forbes. Retrieved November 4, 2011.
  55. ^ "Sixers Owner Michael Rubin On Meek Mill, Bob Kraft...And That Chopper Ride". Bleacher Report. Retrieved September 24, 2021.
  56. ^ "50 Most Influential (2015)". Sports Business Journal. December 7, 2015. Retrieved September 24, 2021.
  57. ^ "NBA's Adam Silver Tops SBJ's List Of 50 Most Influential People In Sports Business". Sports Business Journal. December 6, 2016. Retrieved September 24, 2021.
  58. ^ "President Trump Tops SBJ/SBD's List Of 50 Most Influential People In Sports Business". Sports Business Journal. December 13, 2017. Retrieved September 24, 2021.
  59. ^ "American Sports Gambler Tops SBJ's List Of 50 Most Influential". Sports Business Journal. December 20, 2018. Retrieved September 24, 2021.
  60. ^ "No. 21 — Michael Rubin (50 Most Influential 2021)". Sports Business Journal. December 9, 2019. Retrieved September 24, 2021.
  61. ^ "Fanatics' Michael Rubin tapped as SBJ's Most Influential for '21". Sports Business Journal. December 14, 2021. Retrieved May 23, 2022.
  62. ^ "Fanatics' Rubin takes top honor at SBA ceremony". Sports Business Journal. May 19, 2022. Retrieved May 23, 2022.
  63. ^ "Shop.org Summit, 2014 Speakers". Shop.org. Retrieved July 22, 2015.
  64. ^ Marino, Vivian (August 31, 2018). "Record Sale for West Village with Pool". New York Times. Retrieved August 31, 2018.
  65. ^ Main Line Today: "LibertyMe Dance Studio in Bryn Mawr Teaches Dance Technique and Charity for Kids" By J. F. Pirro February 12, 2013
  66. ^ Philly Style magazine: "The Secrets to Michael Rubin's Success" retrieved July 21, 2013
  67. ^ "Billionaire NBA 76ers Owner Michael Rubin Looks "Hurt" on Dance Floor". 2paragraphs.com. August 14, 2020. Retrieved June 16, 2021.
  68. ^ La Roche, Julia. "It Sounds Like Nicole Lapin Has A Bone To Pick With Page Six". Business Insider. Retrieved October 3, 2018.
  69. ^ "76ers: Michael Rubin Celebrates 'All In' Challenge Reaching $20 Million". Sports Illustrated Philadelphia 76Ers News, Analysis and More. April 26, 2020.
  70. ^ "Justin Bieber and Kevin Hart among celebrities auctioning off experiences to feed the hungry". CBS News. April 17, 2020.
  71. ^ "Athletes, teams, celebs are 'All In' to feed hungry". April 15, 2020.
  72. ^ "Damar Hamlin jersey surges to top seller 'across all sports,' proceeds benefit his charity". Yahoo Sports. January 5, 2023. Retrieved July 4, 2023.
  73. ^ Torres, Libby. "Celebs like Tom Brady and Bennifer partied at a billionaire's Hamptons mansion for the Fourth of July — here's a look inside Michael Rubin's star-studded 'White Party'". Insider. Retrieved July 7, 2023.
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