An April article from the financial publication MoneyWeek has me pondering Michael Rubin stocks. The 51-year-old billionaire is a major player in the sports industry through his $31 billion company, Fanatics. The Bloomberg Billionaire’s Index puts Rubin’s net worth at $10.3 billion, making him the 222nd wealthiest person in the world. His company’s initial public offering (IPO) is one of the most widely anticipated on Wall Street.

What then, you might ask, are Michael Rubin stocks? These are the companies Rubin could buy to keep himself busy while he waits for the IPO deal to happen. Rubin wants to grow his business to a $100 billion valuation and $10 billion in EBITDA (earnings before interest, taxes, depreciation and amortization) by 2032. He could do that by using Fanatics’ cash flow to buy into other publicly traded companies.

Based on his company’s 2023 revenue of $8 billion and a theoretical EBITDA of 10% or $800 million, here are three possibilities that Fanatics could buy.

Amer Sports (AS)

Amer Sports (NYSE:AS) only went public at the beginning of February 2024. The owner of sports equipment brands such as Wilson and Arc’teryx sold $1.37 billion of its stock at $13 a share, below its original pre-IPO pricing between $16 and $18. By March, it had gotten as high as $18.23 before falling back near its IPO price. 

It’s not unusual for IPO shares to return to their IPO price after a strong start. The company’s $2.1 billion in debt accounts for 27% of its $7.82 billion market capitalization. While it’s not ideal, it’s not ridiculously high either. 

However, Amer’s biggest issue is its lack of profits. In the nine months ending Sept. 30, 2023, it lost $113.9 million on $3.05 billion in revenue. If it doesn’t turn a profit soon, its share price will be in the single digits before you know it. 

Fanatics’ strong connections with all the major professional sports leagues mean it could acquire the business, work its magic with the sports leagues and reap the rewards from a stock that probably shouldn’t have gone public until it made money.

It’s one thing for a tech company to go public while losing money. It’s another if you sell sporting goods with decent gross margins. 

TopGolf Callaway Brands (MODG)

In March, TopGolf Callaway Brands (NASDAQ:MODG) was considering splitting its business into two independent, publicly traded companies. The company would spin off its golf equipment business Callaway to focus on TopGolf, its entertainment-focused golf range. 

However, the company said that no discussions about the sale of its golf equipment business had taken place, nor were there any discussions underway about the sale of the entire company. 

Callaway first invested in TopGolf in 2006. By 2018, its stake in the entertainment business was up to 14%. In 2020, Callaway acquired the remainder of the company for $2.66 billion in Callaway stock. Callaway shareholders owned 51.3% of the merged entity, while TopGolf shareholders owned 48.7%. 

When the deal closed in March 2021, the 90 million shares it agreed to issue in exchange for the remaining 86% of TopGolf it didn’t already own were worth $29.52 each. It’s now about half that. 

Of the two businesses, I would assume that Rubin would be more interested in the TopGolf business because it has the potential to open locations worldwide and use its sports connections to grow its popularity. 

Madison Square Garden Sports (MSGS)

Madison Square Garden Sports (NYSE:MSGS) would be an ideal acquisition for Rubin, who grew up in Lafayette Hill, a suburb of Philadelphia only two hours from Madison Square Garden. Though, there are a couple of hiccups with my suggestion. 

First, Rubin used to own 10% of Harris Blitzer Sports & Entertainment, which owns the Philadelphia 76ers and New Jersey Devils. He held his stake for 11 years until officially selling in October 2022 due to conflicts from his business’s sports betting ambitions and player partnerships. 

“When we first bought the Sixers, Fanatics was only in the merchandise business. Now we have the trading card business and the gambling business,” Rubin told Fox Sports in June 2022. “By the end of the year, we’ll have individual contracts with thousands of players, and I’ll be taking bets on the Sixers.”

However, one thing I’ve learned about billionaires over the years is that if they want to make something happen, they will. 

The second hiccup is that the Dolan family controls 71% of the company’s votes. Any deal would have to be approved by James Dolan, who is the Executive Chairman of the company. However, Dolan’s economic interest is just less than 22%, so if an unbelievably rich offer were made for MSGS, he would have a fiduciary duty to the other shareholders and his family. He wouldn’t be able to hold a grudge about MSGS becoming one of Michael Rubin’s stocks.

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.