By Gary Symons
TLL Editor in Chief
Panini America filed a suit Thursday against Fanatics, accusing the larger company of trying to create a trading card monopoly.
Panini, which is a longstanding company in the trading card business, has accused Fanatics of using anti-competitive business practices in an attempt to dominate the market. Those practices include setting up exclusive, long-term deals with professional sports leagues.
The lawsuit comes just two years after Fanatics, best known previously as a producer of sports jerseys, hats and other sports memorabilia or apparel, entered the sports trading card market in a big way.
As reported previously in The Licensing Letter (see linked story below), Fanatics was able to leverage its existing ties with Major League Baseball to acquire an exclusive license for baseball trading cards, resulting in the venerable Topps trading card company to lose most of its business. Shortly afterward, Topps agreed to an acquisition offer from Fanatics
It was a move that The Licensing Letter predicted at the time, as well as the very real possibility that Fanatics will also make a move on other rival collectible companies like Panini and Upper Deck.
Fanatics said it had completed the acquisition of Topps trading cards, a top licensed trading card brand that has serviced collectors, fans, and retailers for more than 70 years. The acquisition of Topps’ sports and entertainment division includes all parts of its iconic worldwide trading cards and collectibles business—both the physical and digital divisions—which sold products in more than 100 countries and had physical operations in 10 countries, including the UK, Germany, Brazil, Italy and Japan.
The speed of the acquisition was breathtaking, given Fanatics didn’t even have a trading card division until 2021. That was the point when Fanatics secured exclusive, long-term trading cards rights from several of the leading professional sports leagues and players associations, including Major League Baseball (MLB), the Major League Baseball Players Association (MLBPA), the National Basketball Association (NBA), the National Basketball Players Association (NBPA) and National Football League Players Association (NFLPA).
Fanatics said at the time that … “the addition of Topps, which also has rights with Major League Soccer, Formula 1, UEFA and Bundesliga, significantly accelerates the buildout of the Fanatics Trading Cards business, as the company adds world-class expertise, infrastructure, an iconic brand and a broad range of capabilities from the industry leader. The deal jumpstarts Fanatics Trading Cards’ MLB and MLBPA rights to design, manufacture and distribute trading cards, which begins immediately versus the original combined start date of 2026.”
“With trading cards and collectibles being a significant pillar of our long-term plans to become the leading digital sports platform, we are excited to add a leading trading cards company to build out our business,” added Fanatics CEO Michael Rubin. “Their iconic brand, commitment to product excellence and passionate employees worldwide will allow us to immediately serve our league and players’ association partners and our fans.”
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Panini, which is represented by law firm Boies Schiller Flexner, alleged in its lawsuit in Tampa, Florida, federal court that Fanatics entered the trading-card market in 2021 with no “knowledge and expertise” and took steps to box out competitors.
Panini alleges Fanatics signed long-term licensing deals with the National Football League, Major League Baseball, National Basketball Association and each of their respective players associations. That could potentially cripple Panini, as it has an exclusive license with the NBA through September 2025 and, among others, an exclusive license with the NFL through early 2026.
The lawsuit also accused Fanatics of poaching Panini employees and unlawfully disparaging the company.
“Because of Fanatics’ anticompetitive conduct, the major U.S. professional sports leagues trading cards market will be entirely controlled by a single firm for decades,” Panini’s lawsuit alleged.
Fanatics denies that claim, saying in a statement that Panini’s lawsuit a “baseless last-gasp, flailing effort by a company that has lost touch with its consumers, is failing in the marketplace and has tried unsuccessfully for years to sell itself.”
Fanatics, represented by lawyers from Latham & Watkins, also said “Panini’s meritless allegations won’t distract us or slow us down, and we will vigorously defend the lawsuit.”
The case was assigned on Thursday to U.S. District Judge Kathryn Kimball Mizelle, a former associate at the law firm Jones Day who was confirmed to the bench in 2020. It will be heard in the US District Court in the Middle District of Florida.
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