Major League Soccer has signed a long-term deal with Fanatics, scheduled to begin domestically in 2019 (‘18 in Canada), that provides the fast-growing sports apparel manufacturer with the rights to produce official MLS merchandise, not just sell it. The company will be able to make everything but official MLS jerseys, as Adidas (ADDYY) owns those rights as the league’s official on-field apparel provider; though the company is able to sell ADDYY game jerseys on the e-commerce platform. In an unrelated transaction, MLS has made an investment in Fanatics. Financial terms were not disclosed.
Howie Long-Short: The NFL bought 3% of Fanatics in May 2017 for $95 million, at a $3.17 billion valuation. By August of 2017, the company had a $4.5 billion valuation; closing on a $1 billion investment from Softbank (SFTBY). Remarkable growth for a company that was purchased for just $277 million back in 2011. It’s worth noting that both MLB and the NFLPA are also invested in the company.
Fan Marino: In 2019, Fanatics will become the manufacturer of MLB’s official Under Armour (UAA) game jerseys. However, April’s $225 million acquisition of Majestic Athletic means they could be putting their product on the field, as early as next season. Majestic and Nike (NKE) currently own the on-field uniform rights to MLB.
Editor Note: The summary for this story was co-written by our friends at The Water Coolest. Check out TheWaterCoolest.com for the latest market news and professional advice.
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