Clearlake Capital led a $700 million financing round for U.S.-based sports platform Fanatics. This valuation of Fanatics is $31 billion, according to sources familiar with the matter.
LionTree, along with existing investors Fidelity, Slilver Lake, and Softbank participated in the round. This was a significant raise in the slowing market for venture capital for private late-stage companies. Sources said that the capital raised would be used for acquisitions.
Major players across the sports space are gearing themselves for opportunities.
It marks another investment in the sports field by Clearlake Capital Group, a Santa Monica, California-based investment firm that partially owns Chelsea Football Club.
Fanatics will close the year with over $2 billion in cash and expect to earn $8 billion in revenue in 2023. The sources declined to identify themselves as they were discussing the financials of private companies.
Fanatics purchased the Topps trading cards business and collectibles business earlier this year for $500 million. This accelerated its plan to launch a trading business in sports cards by owning the rights with leagues.
Fanatics was founded by Michael Rubin. It has grown from a retail sports store to a digital giant that offers trading cards and sports betting. Crunchbase data shows that it has raised close to $5 billion from investors so far.
Fanatics announced that it will launch a sports betting platform and gaming platform in the first quarter of the upcoming American football season.
