WWE taps Fanatics to sell merchandise at live events like WrestleMania, SummerSlam

Vince McMahon’s World Wrestling Entertainment is increasing its partnership with Fanatics, because the rising sports activities platform will now take over the worldwide occasion merchandise business for the skilled wrestling firm.

That means Fanatics will now function the entire on-site retail on the WWE’s greater than 300 occasions all year long, together with its premier stay occasions like WrestleMania and the Royale Rumble. The deal will kick off on May 1, forward of WWE’s Backlash occasion.

Fanatics turned WWE’s international e-commerce accomplice in 2022, a deal that later grew to incorporate licensed merchandise, memorabilia, buying and selling playing cards and collectibles.

“We’ve already experienced [Fanatics’] expertise in this category, and when we sat down and thought about how we could approach growing our retail business, we thought this could strengthen that growth,” stated Alex Varga, WWE senior vice chairman and head of company growth.

WWE has seen its live-event merchandise business develop as the corporate has returned to a fuller slate of occasions and exhibits because the pandemic has waned. In 2022, WWE reported that it had $23.8 million in venue merchandise income throughout 231 stay occasions in 2022, up from $10.1 million the earlier yr when the corporate solely had 101 stay occasions. In comparability, WWE had $18.6 million in venue merchandise in 2019 throughout 260 occasions.

At its WrestleMania occasion earlier this month, the corporate stated that it broke its all-time merchandise file, a rise of 20% in comparison with 2022, which was the earlier excessive. It had greater than 161,000 individuals in attendance over the two-night occasion.

Varga stated the expanded relationship with Fanatics will assist WWE make an extra “connection between our e-commerce channel and our event retail channel,” which may imply ordering one thing from the merchandise stand that might then be delivered to your property later.

Fanatics’ present relationships throughout sports activities may additionally additional profit WWE, Varga stated. For instance, WWE is internet hosting its SummerSlam occasion in August at Ford Field in Detroit, the place the Detroit Lions play – Fanatics is the retail accomplice of the Lions, which can permit WWE to doubtlessly use extra of the retail areas and crew shops within the stadium.

Team relationships just like the Lions and throughout different sports activities could possibly be utilized too, Varga stated, noting that WWE has discovered success just lately with merchandise that’s hyper-localized to the town the occasion is in – for instance, a “Stone Cold” Steve Austin shirt themed to Los Angeles. This expanded partnership may assist WWE collaborate on these shirts with native groups as effectively.  

WWE has elevated the variety of objects it additionally sells since partnering with Fanatics, and Varga stated there may be probably additional room to develop. “As they continue to grow their position in the space, we expect to grow with them,” he stated.

Fanatics, a three-time CNBC Disruptor 50 firm, now has relationships with greater than 900 sports activities properties throughout the globe, together with practically each main sports activities league within the U.S.

This shift in WWE’s business comes after the news that it has agreed to merge with UFC to type a brand new publicly traded firm managed by Endeavor Group.

Endeavor will personal a 51% stake within the new fight sports activities and leisure firm, whereas WWE shareholders may have the remaining 49%, in accordance with the phrases of the settlement. The deal values WWE at $9.3 billion and UFC, which is owned by Endeavor, at $12.1 billion, the businesses stated in a press launch.

The transaction is anticipated to shut within the second half of 2023.

Disclosure: NBCUniversal, the father or mother firm of CNBC, has an present cable TV and streaming deal with WWE.