Fanatics will operate Churchill Downs' "on site and online retail" starting with this year's Kentucky Derby, "promising more 'walk in' locations around the historic race track as well as 'seamless, synchronized shopping experience across online, mobile and on-site retail locations for all horse racing fans,'" according to Jonathan Lintner of the Louisville COURIER-JOURNAL. Fanatics' deal "includes a licensing component with Churchill, meaning the company can create and mass produce its own Derby merchandise, same as it does for a number of college and professional sports teams." Fanatics last year "developed a massive tent featuring all NASCAR drivers' merchandise in one space" (Louisville COURIER-JOURNAL, 2/23). Fanatics Senior VP/Strategy & Business Development Brian Swallow said, "We’re projecting first-year sales increases of 50 percent. We’ll do 90 percent of the business in April and May, before the race, but we’re looking to expand the selling season not just ahead of the race, but afterwards." SPORTSBUSINESS JOURNAL's Terry Lefton reports rights for Derby and Churchill Downs collectibles and memorabilia are "also packaged with the deal." Those items will be "serviced by Fanatics Authentic." Fanatics "replaces a combination of The Game, which was a licensee and operated retail at the track" since '05, and MainGate, the "incumbent e-commerce provider." Fanatics will "add a retail tent during race week" at the Univ. of Louisville's Papa John’s Cardinal Stadium to "service tailgaters" (SPORTSBUSINESS JOURNAL, 2/22 issue). Meanwhile, SME Branding today announced a three-year contract extension with the Kentucky Derby (SME).
