Sports platform Fanatics raises $700m in Clearlake-led round

U.S. sports platform Fanatics has raised $700m in a new financing round led by private equity firm Clearlake Capital, valuing Fanatics at $31bn, sources familiar with the matter said on Tuesday.

LionTree and existing investors Fidelity, Sliver Lake and Softbank also participated in the round, the sources said, a major raise in the slowing venture capital market for late-stage private companies. The capital raised will be used to fund acquisitions, the sources added.

It marks another investment in the sports field by Clearlake Capital Group, a Santa Monica, California-based investment firm that partially owns Chelsea Football Club.

With the raise, Fanatics will end the year with more than $2 billion in cash, and is expected to generate $8 billion in revenue in 2023, said the sources, who declined to be named after discussing private companies’ financials.

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Earlier this year, Fanatics acquired the trading cards and collectibles business of Topps for $500 million, accelerating its plan to launch a sports cards trading business by owning rights with leagues.

Founded by Michael Rubin, Fanatics has expanded from a sports retailer to a digital sports giant with cards trading and sports betting business. It has raised nearly $5 billion in equity from investors to date, according to Crunchbase data.

Fanatics has said it plans to launch a sports betting and gaming platform for the upcoming football season in major U.S. states in the first quarter.

Source: Reuters

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