Billionaire Michael Rubin, founder and executive chairman of Fanatics, has increased his equity in the Philadelphia 76ers and New Jersey Devils, according to league sources.
Following a shake-up of limited partners, Rubin added 2% to his portfolio and now owns almost 10% of Harris Blitzer Sports & Entertainment, the company that holds both franchises, plus the Prudential Center, esports organization New Meta and a handful of other sports and entertainment assets. He is the group’s third largest shareholder, behind managing partners Josh Harris and David Blitzer.
All three increased their equity in HBSE after buying stakes owned by a series of minority partners, including David Heller and Art Wrubel, said the people, who were granted anonymity because the deals were private.
A representative for HBSE confirmed that Rubin increased his equity stake but didn’t disclose specifics. A representative for Rubin declined to comment.
Heller, former co-head of the securities division at Goldman Sachs, sold his shares in HBSE last year, but the buyers were never reported. Wrubel, who founded Wesley Capital Management, exited this year, the people said.
Rubin’s expanded investment comes at a time of potential transition for Fanatics, the company he purchased in 2011 and later rebuilt into what is now the world’s largest seller of licensed sports apparel. Fanatics was valued at $6.2 billion in a recent funding round, believed to be its final before a potential IPO.
Rubin, who was among those interested in buying the Carolina Panthers two years ago, also owns Rue La La, Gilt and ShopRunner, a members-only service for high-end shopping. He’s become a public advocate for criminal justice reform, and was the creator of the All In Challenge, which raised $60 million to fight food insecurity.
Harris, Blitzer and a large group of minority investors (including Rubin) bought the 76ers from Comcast Spectacor in 2011. The group bought the Devils in 2013 and later created umbrella company HBSE.
The 76ers are worth $2 billion, while the Devils are worth $550 million, according to Forbes’s annual valuations. Other HBSE minority owners include actors Will Smith and Jada Pinkett Smith as well as AMC Entertainment CEO Adam Aron.