Michael Rubin’s journey to becoming a retail powerhouse is anything but ordinary.
From a near-bankruptcy experience to steering a sports memorabilia company into a global e-commerce giant, his story is one of calculated risks and strategic reinvention.
This article delves into the key business ventures that shaped Rubin’s remarkable career, exploring his early foray into discount sports equipment, his pivotal role in Fanatics’ meteoric rise and his ventures beyond the sports world.
It seeks to uncover the strategies and vision that propelled him to the top of the e-commerce game, forever changing the landscape of how fans connect with their favorite teams and athletes.
Global Sports Inc
Rubin’s journey into the world of sports business began with a company called KPR Sports, named after his parents.
This company, which started in 1993, eventually reached sales of $50 million by 1995.
Rubin then leveraged this success to acquire a significant stake in Ryka, a struggling athletic footwear company for women.
In 1997, he merged Ryka with his Yukon brand to form Global Sports Incorporated (GSI). This company wasn’t just about selling apparel; it also had a logistics arm.
Recognizing the potential of e-commerce, Rubin transformed GSI into GSI Commerce in 1998, focusing on becoming a major player in the online sporting goods market.
GSI Commerce proved to be a massive success story.
Under Rubin’s leadership, the company’s sales grew rapidly, reaching over $130 million by 1998, when Rubin himself was only 26 years old.
GSI Commerce struck deals with various sporting goods retailers to manage their online presence, further solidifying its position in the e-commerce landscape.
Rubin’s vision for GSI Commerce paid off in 2011 when he sold the company to e-commerce giant eBay for a staggering $2.4 billion.
This successful exit from GSI Commerce provided Rubin with the capital and experience to launch Fanatics, the global sports platform he leads today.
KPR Sports
Rubin’s entrepreneurial journey began with KPR Sports, a company named after his parents’ initials (Ken and Paulette).
It started as an athletic equipment closeout company, specializing in buying and selling surplus stock of popular brands.
Rubin’s keen eye for spotting deals proved successful.
KPR Sports was founded on the profits Rubin made from a lucky break selling excess ski equipment.
The company grew rapidly, reaching $1 million in sales by the time Rubin was 21 years old.
Within a few years, by 1995, KPR’s sales had skyrocketed to $50 million. This early success laid the foundation for Rubin’s future business ventures.
KPR Sports served as a springboard for Rubin’s entry into the athletic footwear market.
In 1995, he leveraged his KPR profits to acquire a 40% stake in Ryka, a struggling women’s athletic shoe company.
This acquisition marked a turning point, setting the stage for Rubin’s next big move: merging KPR Sports with Ryka to form a new company called Global Sports Inc. (later known as GSI Commerce).
Fanatics
Rubin is the founder and CEO of Fanatics, a company that has grown from a simple online sports merchandise retailer into a global digital sports platform.
Fanatics encompasses a number of areas within the sports world.
First and foremost, Fanatics is a major seller of licensed sports merchandise.
They deal with over 900 professional and collegiate leagues, teams and sports organization.
This includes partnerships with giants like Nike, the National Football League, and Major League Baseball, where Fanatics manufactures and distributes all Nike fan gear for those leagues.
Fanatics has also expanded into other areas of the sports world.
They sell trading cards and collectibles, and have gotten involved in the sports betting and iGaming industries.
The company creates special events and experiences for fans, and even uses live commerce to connect with customers.
So, while Fanatics started out as a place to buy jerseys and hats, it has transformed into a multifaceted platform that aims to be a one-stop shop for everything sports fans could want.
GSI Commerce
Rubin founded GSI Commerce in 1995, originally under the name Global Sports Incorporated.
The company’s initial focus was on selling sporting goods and equipment online.
Recognizing the potential of e-commerce, GSI Commerce soon expanded its offerings to include clothing and a wider variety of products by 1999.
To reflect this broader scope, the company rebranded itself as GSI Commerce in 2002.
GSI Commerce became a major player in the e-commerce industry, providing retailers, manufacturers, and other organizations with outsourced solutions for their online businesses.
Their services included developing and operating online stores, managing customer care and fulfillment, and offering marketing and analytics tools.
GSI Commerce partnered with a diverse range of clients, including major brands like Dick’s Sporting Goods, Estee Lauder and Toys “R” Us.
The company’s success stemmed from its ability to offer a comprehensive suite of e-commerce solutions that allowed businesses to establish a strong online presence and compete effectively in the rapidly growing digital marketplace.
However, GSI Commerce’s story doesn’t end there. In 2011, the company was acquired by eBay Inc.
This acquisition marked a significant shift, as GSI Commerce became eBay Enterprise, a division of the e-commerce giant.
Although GSI Commerce ceased to exist as a separate entity, its legacy lives on through the e-commerce solutions that continue to be offered by eBay today.
ShopRunner
Rubin wasn’t always the billionaire businessman he is today. After a failed business venture, he acquired ShopRunner in 2010.
ShopRunner was an existing membership service that offered benefits like free two-day shipping to online shoppers.
Rubin saw potential in ShopRunner, and rightly so. E-commerce was still a growing industry and ShopRunner provided a valuable perk to those who frequently shopped online.
In 2011, Rubin’s company at the time, GSI Commerce, was acquired by e-commerce giant eBay for a whopping $2.4 billion.
As part of the deal, Rubin was able to purchase ShopRunner, along with Rue La La, for $500 million.
ShopRunner continued to grow under Rubin’s ownership. In 2020, Rubin sold ShopRunner to another industry giant, FedEx, for an undisclosed amount.
This move allowed Rubin to focus on his other ventures, including Fanatics, an online sports retailer.
Even though Rubin no longer owns ShopRunner, his acquisition and subsequent sale were a testament to his ability to identify and capitalize on promising businesses in the growing e-commerce landscape.
Rue La La
Michael Rubin isn’t directly the owner of Rue La La anymore, but he played a significant role in its history. Rue La La was originally part of a company called Retail Convergence, Inc.
In 2009, it was acquired by GSI Commerce, a company Rubin founded. Three years later, GSI Commerce itself was sold to eBay.
However, eBay eventually decided it didn’t want to hold onto Rue La La.
In 2012, Rubin’s company, Kinetic, repurchased Rue La La along with other assets from eBay for $500 million.
So while Rubin isn’t directly in charge anymore, Rue La La wouldn’t be what it is today without his involvement.
Currently, Rubin sits on the board of Rue Gilt Groupe, the parent company that oversees Rue La La, along with other online retailers like Gilt.com.