Fanatics is making its long-awaited push into sports betting at the start of next year.

“We’re going to start launching in January,” said Fanatics CEO Michael Rubin at the Sports Business Journal World Congress of Sports. 

• Rubin said Fanatics would be in around “15 to 20 states” by the start of the 2023 NFL season.
• “We’ll be in every major state other than New York, where you can’t make money,” Rubin added. Sportsbook operators are required to pay a 51% tax rate in New York for 10 years. Fanatics applied to operate there last year and was rejected.
• Rubin added that sports betting and Fanatics’ other business segments “could be $8 billion even in the next decade,” in profits.

In March, Fanatics raised $1.5 billion at a $27 billion valuation. 

Built-In Fanbase

Fanatics will leverage its database of millions of customers, a source with knowledge of Fanatics’ sports-betting efforts told Front Office Sports, and its patience getting into the space would likely lead to 30% lower costs overall.

Fanatics is planning to implement a crossover loyalty program between its ecommerce and sports betting.

Industry insiders had speculated that Fanatics would have to acquire an existing betting company, but the source said the purchase of a company like PointsBet — which currently operates in 11 states — isn’t expected.

“They’re a digital company with a good brand,” said Chad Beynon of Macquarie Capital. “But as we have seen, it’s not an easy business to even get 5% market share.”

More fallout is coming from the U.S. Soccer-commissioned investigation into systemic abuse and sexual misconduct in the NWSL.

Chicago Red Stars players have called on owner Arnim Whisler to sell his stake after the report — launched following allegations against former Portland Thorns and North Carolina coach Paul Riley — revealed Whisler repeatedly dismissed allegations against former Red Stars coach Rory Dames. 

• The verbal and emotional abuse claims, which Whisler was aware of “for decades,” date back to 2014, but he took no immediate action to protect players.
• Last week, Whisler said he would step away from his duties on the NWSL board of governors, as well as give up operational control of the club. 
• The Red Stars voted to remove Whisler as chairman of the board, and the board reportedly wants to facilitate a sale, too.

“We are united with the board of directors in their decision to remove Whisler from the organization entirely and look forward to finding a new majority owner,” the players’ statement reads.

The club is valued at a little more than $3.5 million, according to Forbes.

Teams

| by Abigail Gentrup

Timbers, Thorns Lose Deals Following NWSL Investigation

Alaska Airlines is redirecting its money from the Portland Thorns and Timbers.

October 10, 2022

Other Outcomes

The investigation has affected teams across the league.

Orlando Pride head coach Amanda Cromwell and assistant coach Sam Greene have had their contracts terminated for engaging in “retaliatory conduct” toward players.

Alaska Airlines announced it would redirect its money from the Portland Thorns and Timbers after the investigation revealed owner Merritt Paulson had been supportive of Riley despite the allegations. Paulson stepped down as CEO on Tuesday.

Some of the world’s biggest soccer hubs are tuning out the World Cup.

London joined Paris and other French cities in declining to organize fan zones or watch parties in protest of World Cup host Qatar’s human rights record.

The November tournament “progressively turned itself into a human and environmental catastrophe, incompatible with the values which we expect sport, and especially football, to promote,” said Marseille mayor Benoît Payan.

Paris mayor Martine Aubry cited concerns over workers’ rights, alleged deaths of foreign workers, and the environmental impacts of the stadiums, which will have outdoor air conditioning.

Qatar is reportedly conscripting hundreds of civilians to work security at the event.

• London drew roughly 7,000 fans to Trafalgar Square in July to watch the Women’s Euro 2022 final, which England won.
• Officials in French cities Lille, Bordeaux, Reims, Nancy, and Rodez also indicated that they will break from previous practice and not offer fan-gathering sites.

Player Protest

The soccer teams of England, France, Germany, Norway, Sweden, Switzerland, Wales, the Netherlands, Belgium, and Denmark all support the OneLove campaign, which fights discrimination against the LGBTQ+ community. 

The teams that will be playing in Qatar, where homosexuality is illegal, have asked to wear OneLove armbands during World Cup matches. England is prepared to pay a fine to FIFA if permission is not granted.