Run the Numbers – Podcast Summary
Episode: Fanatics CFO on CAC, LTV, and Capital Allocation Across Verticals
Host: CJ Gustafson
Guest: Glenn Schiffman, CFO of Fanatics
Date: April 2, 2026
Episode Overview
In this episode, CJ Gustafson sits down with Glenn Schiffman, CFO of Fanatics, to unpack the playbook behind monetizing sports IP, metrics like Customer Acquisition Cost (CAC) and Lifetime Value (LTV), and the art and science of capital allocation across multiple verticals at one of the most dynamic sports commerce companies in the world. Glenn shares wisdom from a career that spans entrepreneurship, two decades in investment banking, and leading finance at major tech/media firms. This episode offers actionable advice for financial operators, with memorable stories and candid takes on decision-making, negotiation, and operational KPIs.
Key Discussion Points & Insights
1. What IP Monetization Really Means
- Not Just About Money:
- “Monetization is a crude word. It focuses only on money. Money's the output, money's not the input. The input is helping brands and helping businesses delight their fans and bring them closer to the fans. And that's what we do.”
– Glenn Schiffman [00:02]
- “Monetization is a crude word. It focuses only on money. Money's the output, money's not the input. The input is helping brands and helping businesses delight their fans and bring them closer to the fans. And that's what we do.”
- Fans First Model:
- The order of focus at Fanatics: fans → partners → shareholders.
- If you delight fans, partners are happy—and then shareholders benefit [07:13].
2. Anatomy of Fanatics’ Business Model
- Multi-Vertical Platform:
- Partnerships with Nike, Barnes & Noble, Lids; manufacturing fan gear and managing stadium stores [03:29].
- Operates e-commerce, in-venue retail, DTC, and collectibles/trading cards [04:30; 09:17].
- Tailored Partnerships:
- “We have a thousand different partners at Fanatics...they're all snowflakes. They're all different…tailored to the needs of our partners, respectful of the nuances of what's going on in their business.”
– Glenn Schiffman [08:10]
- “We have a thousand different partners at Fanatics...they're all snowflakes. They're all different…tailored to the needs of our partners, respectful of the nuances of what's going on in their business.”
3. Building Great Partnerships
- Partnerships Transcend Legal Terms:
- “If you have to rely on three to five clauses to make the partnership great, you don't have a great partnership. Once the partnership is signed...if you refer back to that agreement, it's a bad day.”
– Glenn Schiffman [09:27]
- “If you have to rely on three to five clauses to make the partnership great, you don't have a great partnership. Once the partnership is signed...if you refer back to that agreement, it's a bad day.”
- Contract Clarity and Trust:
- Having to enforce the contract post-signature usually signals trouble [09:50].
4. Metric-Driven Decision Making
- Key KPIs for Success:
- Free cash flow is king—more important than profitability alone [10:49].
- Top-of-funnel: Net new users, transactions, average order value (AOV), and discounting effectiveness.
- Operational: Margins, time to porch (delivery), perfect order rate, reduction in customer service contacts [11:56].
- Quote:
- “Revenue and profitability are the great equalizer. More important than profitability is free cash flow. Like free cash flow doesn't lie.”
– Glenn Schiffman [10:49]
- “Revenue and profitability are the great equalizer. More important than profitability is free cash flow. Like free cash flow doesn't lie.”
5. Input Metrics as Leading Indicators
- CJ Summarizes:
- “Things like time to porch in perfect order is…what people come to this podcast for…input metrics…leading indicators of how well this is going to turn into cash.”
– CJ Gustafson [16:42]
- “Things like time to porch in perfect order is…what people come to this podcast for…input metrics…leading indicators of how well this is going to turn into cash.”
6. Customer Acquisition, LTV, and Cross-Vertical Engagement
- Single View of the Fan:
- Extensive investment in data infrastructure to unify customer profiles.
- “Our multi-business customers…buy, bet and collect…spend 4.7 times as a single business customer.”
– Glenn Schiffman [17:11]
- Fan Cash Loyalty:
- Omnichannel loyalty program operating across in-venue, online, retail stores, betting, and collectibles [18:30].
- CAC vs. LTV:
- Aim for static or slightly increasing CAC, but multiplying LTV through engagement across verticals [18:59].
- Cross-Sell Engine:
- E-commerce leads the funnel, but trading cards, gaming, and soon a Fanatics credit card, offer new on-ramps [19:53].
7. The Role of AI and Personalization
- Harnessing AI:
- Using AI for deduplication, intent detection, next-best-offer, and personalized experiences [21:10].
- “Now the slope is vertical in terms of how fast technology is changing...we're harnessing it...for…efficiency…making our products better, making our go to market motion cleaner and more attractive.”
– Glenn Schiffman [22:14]
8. Sales Motions & Margin Profiles
- Multi-Channel Sales:
- D2C, wholesale, and retail each have distinct margin and expense profiles.
- Strategy is to meet fans where they are (in-store or online), not force them to a channel [23:01].
9. Budgeting, Predictability, and Revenue Focus
- Budgeting Approach:
- Autonomous business unit budgeting, but with shared corporate services.
- Long-term contracts add predictability; sports fan behavior is highly repeatable.
- “I will always focus on the infinite, which is revenue. I and every other CFO...loves to cut costs and loves to drive efficiency. But I will always focus on the infinite versus the finite.”
– Glenn Schiffman [24:25, 24:51]
10. Capital Allocation: Starve the Losers, Feed the Winners
- Key Principle:
- “If something's not working, more money typically isn't going to make it work…if they're winning in the KPIs…then you feed that…But if they're losing, yeah, you starve them and you force them to figure it out.”
– Glenn Schiffman [29:55]
- “If something's not working, more money typically isn't going to make it work…if they're winning in the KPIs…then you feed that…But if they're losing, yeah, you starve them and you force them to figure it out.”
- Compounding Returns:
- Capital should be allocated to opportunities where incremental investment delivers increasing returns (the “holy grail” of investing) [32:29].
- Case Example:
- Gaming and collectibles divisions received increased investment as metrics signaled outsized returns [29:55].
11. Balance Sheet Management and Share Buybacks
- Balance Sheet as a Performance Multiplier:
- Efficient use of debt, equity, and buybacks can amplify shareholder returns.
- “When you buy your own stock back, it's an asset you know well, there's no integration risk, there's no M&A risk...”
– Glenn Schiffman [34:01]
12. Lessons in Negotiation and Career Progression
- Negotiations:
- “Deals tend to not age well, so you kind of want to get them done…A counterparty will tell you how they want to negotiate it. You just got to listen, ask questions and listen.”
– Glenn Schiffman [39:49]
- “Deals tend to not age well, so you kind of want to get them done…A counterparty will tell you how they want to negotiate it. You just got to listen, ask questions and listen.”
- Early Career Lessons:
- “Take more risk…network more aggressively.”
– Glenn Schiffman [41:33]
- “Take more risk…network more aggressively.”
13. Tools & Tech Stack
- Migrated Entirely to Oracle Fusion:
- Unified HR and ERP—”Uphill both ways. Barefoot walking on broken glass.” [42:33]
Notable Quotes & Memorable Moments
- “Money's the output, money's not the input…the input is helping brands and helping businesses delight their fans.” – Glenn Schiffman [00:02]
- “If you have to rely on three to five clauses to make the partnership great, you don't have a great partnership.” – Glenn Schiffman [09:27]
- “Free cash flow doesn't lie. Cash doesn't lie.” – Glenn Schiffman [10:49]
- “Our multi-business customers…tend to spend 4.7 times as a single business customer.” – Glenn Schiffman [17:11]
- “If something's not working, more money typically isn't going to make it work.” – Glenn Schiffman [29:55]
- “I will always focus on the infinite, which is revenue…cannot cut my way to revenue growth.” – Glenn Schiffman [24:51]
- “Deals tend to not age well, so you kind of want to get them done.” – Glenn Schiffman [39:49]
- “Take more risk…network more aggressively.” – Glenn Schiffman [41:33]
- “Uphill both ways. Barefoot walking on broken glass,” describing ERP migration. – Glenn Schiffman [42:33]
Timestamps for Key Segments
| Segment | Timestamp | |-------------------------------------------------------|-------------| | Definition of IP monetization | 00:00–00:16 | | Fanatics partnership structure | 03:29–04:30 | | Key partnership clauses & philosophy | 09:17–10:06 | | KPIs & input metrics | 10:49–13:22 | | LTV, CAC, and cross-platform data | 17:11–21:10 | | AI, personalization, and operational efficiency | 21:10–22:51 | | Sales motion & margin profile differences | 23:01–24:06 | | Budgeting & revenue vs expense focus | 24:25–26:34 | | Capital allocation: starve losers, feed winners | 29:55–32:29 | | Balance sheet management & buybacks | 34:01–36:00 | | Negotiation story from Lehman Brothers days | 37:08–39:43 | | Lightning round (mistakes, advice, tech stack) | 40:03–44:33 |
Final Takeaways
This episode offers a masterclass in world-class financial leadership at scale, emphasizing the priority of delighting fans, running a metric-driven business, and allocating capital for compounding returns. Glenn Schiffman's humility, risk perspective, and deeply pragmatic advice around negotiation, partnership, and technology migration make this a must-listen for any operator with financial responsibility.