The fanatics, known for their sportswear and more, have collaborated with a host of celebrities, including rappers Jay-Z and TikTok’s famous D’Amelio familyto buy the Mitchell & Ness franchise in the latest deal to expand its sporting goods empire.
The deal, which ended on Wednesday, is valid Mitchell & Ness around $250 million, said two people with knowledge of the matter, who spoke on condition of anonymity because the terms of the deal were confidential. These people say Mitchell & Ness made about $70 million in profit while on sales of about $350 million last year.
Fanatics will own 75% of Mitchell & Ness as part of the transaction, while the remaining 25% will be owned by the celebrity group, which includes Maverick Carter, Business Partner of LeBron James and rapper Meek Mill. Kevin Wulff, chief executive officer of Mitchell & Ness, will continue as part of the agreement, as will all 132 employees.
Fanatics has made a name for itself with a fast fashion approach to sporting goods, setting itself up to rapidly produce the hottest items by sensing shifts in fan demand. It owns the rights to cheerleaders for major US sports teams, and the deal adds streetwear to its portfolio of apparel lines including Majestic (shirts), Top of the World (caps). ) and WinCraft (flags, banners and accessories).
More recently, Fanatics, last valued at $18 billion by investors, purchased business card from Toppsand it has expanded into non-corrosion, digital art, tradable tokens commonly known as NFTs and gambling.
Mitchell & Ness, founded in Philadelphia in 1904, is known for throw back shirt, which sell for between $100 and $400. It already has licensing agreements with the National Basketball Association, the National Football League, Major League Baseball, Major League Soccer, and several NCAA colleges.
The brand has changed hands several times, with Adidas acquiring it in 2007 and private equity firm Juggernaut Capital Partners and Mr. Wulff buying it in 2016. It joins other nostalgic brands, like Reebokbrought in new owners with a plan to give them new life.
Jay-Z, who describes himself as an “early adopter” Mitchell & Ness, said in a statement that he was “proud to play a small role in bringing it back and in some cases, gender introduces the authenticity and quality of Mitchell & the Ness Brand into a new generation. ”
https://www.nytimes.com/2022/02/18/business/fanatics-mitchell-ness-sports-merchandise.html Fanatics are buying Mitchell & Ness, a fellow sports trader.