#1 Winning Way to Make Money From Your Sports Memorabilia

Fanatics CEO reveals how his company grew from small town shop to billion dollar biz.
8:41 | 12/04/14

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Transcript for #1 Winning Way to Make Money From Your Sports Memorabilia
If you want proof that people are crazy about sports you just need to look at the numbers no matter what country you're in and which home team you worship every year billions of dollars are spent on merchandise from baseball caps to T shirt. Even popcorn machines with teen logo was. In the United States alone studies estimate that the sport's market. Brings in over 425. Billion dollars in revenue and that is every single year. We want to turn now to it dog Max he is CEO of fanatics this company has grown from a small brick and mortar retail story Jacksonville. To the largest online retailer of officially licensed sports merchandise in the world and it's so nice to have you with us great Beers and he brought some samples we did right the economy here it it's so that's very interesting to me so. Christmas time the holidays are the biggest have a beer for buying this stuff by. Far the fourth quarter of our year is more than 50% of our annual revenue and for retailers that's an incredible spike. Typical retailers will see thirty maybe 40% that this is how per year it's one part holidays. It's one part a lot of great things are going on sports he of the World Series NBA NHL college football pro football all happening at the same time plus soccer to be. Given the controversy is it in the NFL right now that Ray Rice issues. The Peterson issues. Have you seen any changes in demand. You know we happens we've just come off our stretch that we call the cyber speed which it is most important days of the selling your forests and we were about 25% growth your every year. We set our all time record for sales of the company on Monday Cyber Monday that the e-commerce shopping day. And an apple products perform right in line with those growth levels so we've really seen no impact no impact whatsoever and people still buy the jerseys for the players that have been impacted in particular by. That this scandal so there are 17100 active players in the league so there's there's many many more players that people are buying jerseys for one of the big examples was here in New York Beckum junior made that incredible catch a couple of weeks ago. And he instantly became the number one selling Jersey overnight across our platform site so we really see is. The players that are on the field and performing well. Get the preponderance of a purchase is behind them. That's interstate so there's a direct correlation between performance out on the field and purchases to your site almost instantaneous it happens every weekend in the real world yeah there was a recent one where a couple months ago Washington Redskins Everett quarterback Brock worker from the third. He got injured the back of her cousins came in had a great game. He became the number one selling Jersey across our platform that weekend so it's really a lot about what teams are hot what players are hot. That's where this elderly flow what what what are your top three teams selling today on the site. So it varies by league but if you think about right on basketball the big story is LeBron James going to Cleveland Cavaliers met team is gone and they've raced to the top of the charts. In Major League Baseball you know my hometown San Francisco Giants won the World Series and they ultimately of course became the number one selling him along with that in football there's a number teams that are him quite well right now. Ranging from New England Patriots. Two Green Bay Packers to Dallas Cowboys and then in college football Alabama's immigrant run. And Ohio State as well so they're also near the top the charts. You bring up LeBron James and the Cleveland cat which reminds me I was walking home this a couple of years ago when he had just left the Cleveland cavs. Somebody had left a garbage can on the side of the street. In it was a pile of garbage in New York City which if anyone who knows New York knows that they're everywhere here but I wish I was looking at a thinking. I wonder this is about he value is it is that kind of thing that kind of thing that would have value. I don't know because it's hard to authenticate that kind of item it's almost sounds a little bit more like urban legend so that wouldn't be the first place I would go to find our valuable is forty memorabilia. So I can stop digging through the I think looking for now what for people who are on the other side of this you are looking around their home they have some merchandise. They would like to make some money on it what's your best piece of advice. You know it's interesting what we have here couple things to show to give you an idea of of authentic merchandise and one is a Peyton Manning's helmet very popular athlete he just set all time types of record he signed it. I have a Metzenbaum guard World Series baseball for the MVP here I think what's really important is authentic. So when you're on the buy side you want to know my getting something that's real not just going to marketplace it's something that somebody maybe has made upwards fraud. So what we really recommend is it all starts on the purchase sighed so is fanatics we have group called facts authentic. That we worked directly with the athletes Colin temperament Peyton Manning Damien Willard Tony is that your signature. If they did do we know we actually Saddam in a room through our process and have them sign with a right hand on the right piece of merchandise and then what watching goes through and do. Is we hologram so that you can see it's all thank you to buyouts so will we recommend to fences. By former reputable source preferably somebody who's working directly with the athletes so they were there when the signing was done. Keep the original packaging keep the certificate of authenticity keep the hologram on the ball don't peel it off. And if you have all of those pieces together then when you go to resell you the right patrols to prove to somebody. This was a legitimate piece of merchandise so this this rock how how much would that go far right so if you go to our sites you'll see a variety of Peyton Manning products the helmets range from 60800. Dollars with a signature some have a signature. Some have his record on it some you can actually asked that he writes a personal message to somebody that you wanna give to do I want Colin. A poem it might have to be a short Markel and like an old. Issue that's remarks are another red writer well highlight play football that's right and we have hundreds of sites or sports memorabilia is across many of the sites fanatics authentic dot com is the specific site that's for the memorabilia off. For the memorabilia about how does it cost because. That the league all of these eight whether it's a football baseball basketball they keep very strict controls nine. They are branding on their logos. Do you have to pay a lot of money in order to be the exclusive to have the X with sadness at how much money as that. Yeah so it really varies by product works differently and memorabilia than it doesn't licensed merchandise in many of these type of products if you take the Brooklyn nets had. This is manufactured by one of our vendors that vendor goes and create the licensing relationship with the lead. So that they have the rights to produce an NBA product a Brooklyn that's product. And then what we use we purchase our products from our vendor and they'd take those royalties in to what we paid him. They're a bag that you mentioned that you have your own cyber days. That your it's actually participating in Black Friday and and right now as it stands and in the overall retail space. It's falling short. That is short of expectations at this point in your business Howard things are they performing up to what you expected argue below what needs to happen the rest the year. The you know there was really mixed data coming out of that the holiday weekend the group vets we call the Cyber Monday to Monday around Thanksgiving. We saw very strong run in that period we were up 25% your rear. Cyber Monday was the biggest in our history so we are definitely a little bit it even ahead of where we thought we'd be on a plan basis. I think what is happening is brick and mortar stores did not have a stronger as a period. Black Friday is now spreading out people are starting earlier promotions are starting earlier. But I do many of my e-commerce. Friends. Wins for unit and did pretty well over the weekend so I think some of the data is misstated earnings commerce. E-commerce and mobile shopping in particular did very well for a lot of people over the holiday weaken ourselves included. In terms of people who are out there who have some piece of merchandise sports merchandise that they think could sell for a lot of money. What we're is their demand and there is not supply in what you're delivering. Do you know we as a retail comparing power company think about consumer Iraq so we have our sites we have. Our supply chain. And we saw consumer directed words closely over the Internet. I'm not tried building were great piece of vice big because it's hard are we estimate scale we're billion dollar company it's hard to kind of replicate that model as an individual seller. All right what Doug thank you so much the company is fanatics anyone who's fanatical about sports you wanna check it out. Thank you Doug thinks so much. And thank you for joining us for real biz we want to hear from you what is the craziest item of sports memorabilia that you wound. And how much did you pay for like us tweet us that Rebecca Jarvis and comment below and from the studios in New York City am Rebecca Jarvis have a great act.

This transcript has been automatically generated and may not be 100% accurate.

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