The Governor of New York, Kathy Hochul, has announced that sports commerce and gaming group Fanatics will expand its operations in the Empire State. It is estimated that the company will create 300 jobs for New Yorkers and invest over $50 million to develop and equip an expanded Manhattan office.
Key Takeaways
- New York Governor Kathy Hochul has announced the expansion of Fanatics' operations in the state.
- The growth will be assisted by Empire State Development and will create 300 jobs.
- It comes as the CEO of Fanatics made a statement that the company could generate $50 billion in yearly revenue in the next decade.
The project will be supported by Empire State Development through performance-based Excelsior Jobs Program tax credits, worth up to $5 million.
“By supporting [Fanatics] significant investment and the creation of 300 new good-paying jobs, we are reinforcing New York City’s role as a global hub for technology, digital commerce, and creative industries and ensuring that the jobs of tomorrow are created right here at home,” said Governor Hochul in a press release.
Currently, Fanatics employs around 650 staff in New York, and this expansion adds an additional 95,000 square feet to its 95 Morton Street office. The expansion is expected to accommodate the company’s growth in technology, product, corporate, and operations.
The expansion aligns with Governor Hochul’s efforts to grow New York’s economy, attract high-growth industries, and create well-paid careers in sectors such as technology, media, and digital commerce.
Fanatics Executive Vice President and Chief Financial Officer Glenn H. Schiffman added, “New York City plays an important role in growing our global platform by offering unmatched access to talent and connections across sports and entertainment.”
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Fanatics CEO believes company could reach $50 billion in revenue
As Fanatics expands its job offering and office space in New York, the company's CEO, Michael Rubin, has stated he believes that the organization could see $50 billion in annual revenue within the next 5-10 years.
He has revealed plans for the company to expand into prediction markets and financial services, according to Forbes.
Rubin spoke at the National Retail Federation's Big Show in New York and said there is no immediate pressure to take the privately held company public, even with its current $13 billion valuation.
The largest revenue generator for Fanatics is its licensed merchandise, making around $7 billion, followed by collectables and trading cards, which generate $4 billion.
The U.S. remains its main revenue source, with international operations generating around $1 million. However, Rubin added that international expansion is an opportunity for the company, following its launch of a London trading card store.
While sports betting and gaming currently see around $2 billion, the group said it has invested heavily in online sports betting, as it competes with established operators such as DraftKings and FanDuel. However, it has only operated at a loss so far.
The company also expanded into prediction markets in December last year, through a partnership with Crypto.com in states without legalized sports wagering. Additionally, Rubin added that the company plans to launch a branded credit card in the spring.
