Fanatics hires former Opendoor executive to run $5 billion sports merchandise business

Fanatics has employed a brand new chief executive for its largest business unit, the newest executive transfer for the sports platform because it continues to construct in direction of a possible IPO.

Andrew Low Ah Kee, who most just lately was the president of Opendoor and was additionally beforehand the COO of GoDaddy, will function the CEO of Fanatics Commerce, which incorporates the corporate’s merchandise business masking licensed fan gear, jerseys, and different attire and merchandise, e-commerce and stadium and occasion retail.

Fanatics has seen that space of its business develop to greater than $5 billion in annual gross sales, a key driver of its rising total income and valuation. The firm is projecting $8 billion in revenue this year and raised $700 million final December at a valuation of $31 billion.

Michael Rubin, who serves because the chairman and CEO of the bigger Fanatics enterprise, restructured the business in 2021 to give attention to three business strains – commerce, to now be overseen by Low Ah Kee; betting and gaming, led by former FanDuel CEO Matt King who was employed in 2021; and collectibles, led by former Dick Clark Productions CEO Mike Mahan, employed in 2022. The firm has additionally made current hires to oversee the Mitchell & Ness brand in addition to its livestreaming business, areas the place it sees future development.

“As we give attention to additional constructing our Commerce business and doubling down on creating the very best total fan expertise, we have been in search of a confirmed executive who’s obsessive about creating elite buyer experiences, using innovation for development, scaling firms globally, producing sturdy monetary outcomes, constructing famend manufacturers and establishing sturdy groups and inner tradition,” Rubin stated in an announcement.

The slew of current executive appointments strikes Fanatics nearer to Rubin’s objective of an eventual IPO as its business continues to increase past sports merchandise. The firm has most just lately had its eyes on sports betting, scooping up PointsBet’s U.S. assets for about $150 million in May.

In June, the corporate held its second investor day in practically a 12 months, the place Rubin and different executives met with greater than 100 current and potential institutional buyers.

Last November, Rubin gathered sell-side analysts for a meet-and-greet and to speak about his development plans for the corporate.

In April, the corporate introduced it was hiring Deborah Crawford from Meta to lead investor relations, a brand new place on the firm.

Low Ah Kee is changing Doug Mack, who has served as Fanatics Commerce CEO since 2014 and introduced final month that he could be retiring on the finish of 2023. Fanatics stated Mack will work with Low Ah Kee for the rest of the 12 months after which will shift right into a particular advisory function for Rubin and the corporate. Opendoor introduced final December that Low Ah Kee was leaving the corporate.