Fanatics is in talks to acquire German sports betting company Tipico, according to CNBC. 

Fanatics is looking to tap into the sports betting market after CEO Michael Rubin sold his 10% stake in Harris Blitzer Sports & Entertainment — owners of the Philadelphia 76ers and New Jersey Devils. Earlier this month, HBSE was valued at $3 billion. 

Rubin’s decision allows Fanatics to enter the sports betting market after being prohibited by an NBA rule that barred team owners from operating gambling platforms. 

Fanatics, which is projected to generate more than $5 billion in revenue in 2022, has steadily expanded its portfolio outside of its bread-and-butter sportswear merchandising and retail. 

• It bought trading card giant Topps in a deal valued at $500 million in January. 
• The company was part of a consortium that purchased Mitchell & Ness for $250 million. 

The potential purchase of Tipico would immediately establish a footprint for the company in the U.S. betting market. Tipico currently holds betting licenses in Colorado and New Jersey. 

Money to Spend 

Fanatics will have no problem footing the bill for Tipico following the company’s latest funding round. Earlier this year, Fanatics raised $1.5 billion, valuing the business at $27 billion.

The round — led by the NFL’s $320 million investment — included Brooklyn Nets owner Joseph Tsai’s Blue Pool Capital, Paris Saint-Germain owner Qatar Investment Authority, and others.

At Thursday night’s NBA Draft, prospects knew that they had to be one of the top 30 selections to get a guaranteed contract on the league’s rookie scale. 

So fans can imagine Paolo Banchero’s excitement when he was called as the No. 1 pick for the Orlando Magic. The former Duke player locked in around $9.09 million for his first year, $9.54 million for his second, and nearly $10 million for his team-option years.

Rookies drafted in the first round sign four-year contracts, with the first two guaranteed and the last two as team-option years.

Figures for the top, middle, and lower picks differ by millions of dollars, especially in the first year.

• Chet Holmgren, No. 2 overall pick: $8.13 million
• Mark Williams, No. 15 overall pick: $3.06 million
• Peyton Watson, No. 30 overall pick: $1.8 million

Players can sign anywhere from 80% to 120% on the scale. Rookie contracts can’t be extended until after the third year.

NBA vs. NFL

The NFL also has a rookie scale, but it includes bonuses. This year’s No. 1 pick was Travon Walker, who landed a four-year, $41.4 million deal and a $27.3 million signing bonus. The NBA’s picks can be worth more over time if the NBA teams choose to exercise their salary increase.

The Ottawa Senators are one step closer to getting a new home.

The team, which Forbes last valued at $525 million, reached a memorandum of understanding with the National Capital Commission and a group of partners for an arena in the LeBreton Flats area.

Pending a few more steps — including approval from the City of Ottawa — the team will be able to move from the Canadian Tire Centre. Last season, the team’s average attendance was the lowest in the league.

The NCC said in a release that it aims to reach a long-term land-lease agreement by the fall of 2023, adding that there are “clear targets related to sustainability, affordable housing, and benefits for the Algonquin Nation.”

The Senators were awarded the bid to develop in the same area in 2016, but negotiations fell apart in 2018 after the relationship between the late Senators owner Eugene Melnyk and his business partner John Ruddy went south, generating lawsuits and counter-lawsuits. 

• Melnyk, who purchased the team for $92 million in 2003 to save it from bankruptcy, died on March 28.
• NHL commissioner Gary Bettman said in May that the team is not for sale. Melnyk’s daughters, Anna and Olivia, remain in charge.

Behind the Build

Live Nation, Sterling Project Development, Tipping Point Sports, and Populous are partnering with the team on the arena, which would be on a 7.5-acre plot.

Anthony LeBlanc, the team’s president of business operations, said the Senators will spend the “next series of months” looking at financing.