How I Built This with Guy Raz: Fanatics’ Michael Rubin

Release Date: January 27, 2025

In this captivating episode of How I Built This, host Guy Raz delves deep into the entrepreneurial journey of Michael Rubin, the visionary founder of Fanatics. From his humble beginnings as a young entrepreneur to building a $25 billion sports merchandise empire, Rubin shares intimate insights, challenges, and the relentless drive that fueled his success.

Early Beginnings: From Childhood Hustler to Teenage Tycoon

Michael Rubin’s entrepreneurial spirit manifested early. Despite struggling academically and athletically, Rubin found his niche in business from the age of eight.

• Starting Young: At just 8 years old, Rubin began selling snow shovels door-to-door during snowy seasons.

• First Business Venture: By age 12, a friend inspired him to start a ski tuning shop. “I would go around door to door, sell the snow shoveling, and then hire six kids at five bucks an hour to shovel all the driveways” (09:10). This venture quickly scaled, leading him to open multiple ski shops by his mid-teens.

• Rapid Growth: By 15, Rubin operated five ski shops, generating significant revenue. “When I was 13 years old, I did $25,000 in revenue” (11:42).

Navigating Challenges: Bankruptcy and College Departure

Rubin’s early success was met with obstacles that tested his resilience.

• Financial Setbacks: At 16, after making expansive purchases, Rubin faced bankruptcy. “I prepared to go bankrupt... I thought I was a complete failure” (16:57). However, his creditor meetings revealed his true age and secured him a deal to settle his debts with parental support.

• College Experience: Rubin briefly attended Villanova University but found little interest in academics. “I remember always sitting in the parking lot of Villanova on this giant cell phone, buying and selling things” (18:18). Ultimately, he left college after one semester to focus on his burgeoning business.

Building GSI Commerce: Pioneering E-Commerce in Sports

Transitioning from local ski shops to a national e-commerce powerhouse, Rubin founded GSI Commerce.

• E-Commerce Innovation: In 1998, recognizing the potential of the Internet, Rubin launched GSI Commerce, securing e-commerce rights for major sporting goods retailers. “I wrote the plan for GSI Commerce to run the Internet business for major retailers like Dick's Sporting Goods and Sports Authority” (35:37).

• Dot-Com Bubble and Resilience: Despite the dot-com bubble burst in 2001, Rubin capitalized on the downturn by acquiring competitors at lower prices and strengthening his business model. “Every period of controversy... was a big opportunity” (37:26).

The Fanatics Era: From Acquisition to Global Dominance

Rubin’s acquisition and subsequent growth of Fanatics marked a pivotal shift in the sports merchandise industry.

• Acquiring Fanatics: In 2011, after eBay’s acquisition of GSI Commerce, Rubin repurchased Fanatics for $330 million. “We bought back Fanatics, including the licensed business that GSI had, for $330 million” (42:27).

• Strategic Vision: Rubin transformed Fanatics from a mere retailer into a vertically integrated, direct-to-consumer powerhouse. “We wanted to do something special, like respond in real-time to sports events and fan demands” (44:20).

• Seamless Integration: By collaborating closely with sports leagues, Fanatics enhanced its product offerings and expanded its reach. “We gave sports leagues the ability to drive a much bigger percentage of business through their own direct-to-consumer business” (44:08).

Leadership Philosophy: Grinding and Growth Mindset

Rubin attributes his success to an unwavering work ethic and a focus on continuous improvement.

• Relentless Grind: “I attribute 100% of it to the grind... I am a top grinder. I'll outwork, I'll out-hustle anybody” (60:19).

• Embracing Challenges: Rubin thrives on overcoming difficulties, viewing each obstacle as a chance to innovate. “We focused on the business and built a much better business during that period” (39:19).

• Operational Strengths: While recognizing his limitations in operations, Rubin excelled in vision and strategy, surrounding himself with competent teams to handle execution. “I was good at developing the idea, the vision, the strategy, and leading the people around me” (38:22).

Personal Insights: Balancing Success and Well-being

Rubin opens up about the personal sacrifices and mental health challenges that accompany his professional life.

• Sacrifices Made: Rubin acknowledges the time and personal relationships he has sacrificed but frames them as necessary for his passion. “There are lots of sacrifices that I've made and will continue to make, but they don't feel like sacrifices to me because I'm doing what I love” (55:32).

• Mental Health Struggles: Dealing with anxiety and physical health issues, Rubin emphasizes the importance of addressing personal well-being. “I have one of the worst... where it keeps enlarged... the only way to fix it is sleep” (58:21). He strives to improve his sleep habits despite the challenges.

Future Outlook: Continual Innovation and Expansion

Despite Fanatics’ immense success, Rubin remains committed to innovation and scaling new heights.

• Constant Improvement: Rubin maintains a startup mentality, always seeking ways to enhance Fanatics’ operations and fan experience. “We're not thinking about what we've done well, but what we're not doing well... What can we be better?” (44:24).

• Expanding Horizons: Beyond merchandise, Fanatics is venturing into collectibles and sports betting, aiming to dominate these new markets. “Fanatics’ Sports Betting business... being the underdog is fun” (51:01).

• Commitment to Fans: Rubin prioritizes enhancing the fan experience, ensuring that Fanatics remains beloved by sports enthusiasts. “We need to be better to be beloved by sports fans” (50:34).

Conclusion: A Legacy of Innovation and Resilience

Michael Rubin’s story is a testament to the power of grit, strategic vision, and unwavering dedication. From shoveling snow as a child to leading a multi-billion-dollar enterprise, Rubin exemplifies the entrepreneurial spirit. His ability to navigate challenges, embrace continuous improvement, and prioritize the fan experience positions Fanatics as a dominant force in the sports merchandise industry.

“I've been at this for a long time, but I still feel like a startup” (46:41), Rubin reflects, highlighting his enduring passion and commitment to growth.

Notable Quotes:

• “I always had to pay him right on time that he gave me an A for my co-op program.” – Michael Rubin (13:30)
• “I can do anything I set my mind to.” – Michael Rubin (08:29)
• “Luck and time are a very important ingredient. That said, I attribute 100% of it to the grind.” – Michael Rubin (60:19)

Key Takeaways:

• Early entrepreneurial ventures can lay the foundation for future success despite academic or athletic challenges.
• Resilience in the face of financial setbacks is crucial for long-term growth.
• Strategic acquisitions and leveraging e-commerce innovations can transform a business landscape.
• Continuous improvement and a relentless work ethic drive sustained success.
• Balancing personal sacrifices and maintaining well-being are essential aspects of an entrepreneur’s journey.

For more inspiring stories from the world's best-known entrepreneurs, listen to How I Built This on the Wondery App or your preferred podcast platform.