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Thursday, June 13, 2024

Fanatics’ Sports Betting Plans Force CEO to Sell Stake in 76ers, Devils

  • Fanatics CEO Michael Rubin has reportedly sold his 10% stake in Harris Blitzer Sports & Entertainement.
  • David Adelman will take a stake in the team.
Kyle Terada-USA TODAY Sports

Two major pro sports teams have a new owner.

Fanatics CEO Michael Rubin has reportedly sold his 10% stake in Harris Blitzer Sports & Entertainment, which owns the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils.

David Adelman announced on Twitter that he would be joining the ownership group, with ESPN reporting that he took a “substantial share” of Rubin’s stake. The remainder will reportedly be split between Josh Harris, David Blitzer, and other limited partners.

The transaction, which comes after Arctos Sports Partners bought a minority stake in June, values HBSE at roughly $2.5 billion.

Adelman — the CEO of Campus Apartments, co-founder of FS Investments, and founder of Darco Capital — already has ties to the 76ers as the chairman of real estate development company 76 Devcorp, which he created with Harris and Blitzer.

  • The group plans to build a $1.3 billion arena for the team called 76 Place.
  • The project, which the team says could bring in $400 million annually for the city, has a target end date of 2031.

Forbes last valued the 76ers at $2.45 billion and the New Jersey Devils at $775 million.

Rubin’s Reasons

Rubin announced in June that he would divest his stake in the company, as Fanatics’ new offerings would conflict with ownership rules.

Earlier this year, Fanatics launched trading cards and collectibles and has contracts with “thousands of athletes.” This month, Rubin said the company would launch sports betting in January.

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