Fanatics CEO Michael Rubin has sold his 10 percent stake in Harris Blitzer Sports & Entertainment, completing a divestment as a limited partner of the Philadelphia 76ers and New Jersey Devils, sources told ESPN on Thursday.
David Adelman purchased a substantial share of Rubin’s stake and now joins HBSE co-founders Josh Harris and David Blitzer as a limited partner in the Sixers and Devils, sources said. Adelman is the chairman of 76 Devcorp, a real estate development company working to build a new 76ers arena in downtown Philadelphia.
Rubin divested his 11-year stake in the NBA and NHL franchises largely because of looming conflicts in the expansion of his Fanatics business into sports betting and individual player partnerships.
Fanatics is a $20 billion-plus company that sells licensed professional and college merchandise online. The expansion into sports betting and negotiating individual partnership deals with pro athletes creates numerous conflicts with collective bargaining rules.
Prior to the 76ers trade involving James Harden in February, Rubin drew the scrutiny of NBA rivals because of his close relationship with Harden. Rubin can now enter outside financial partnerships with players that were disallowed because he was a part-owner of the teams.
Source: www.espn.com