Fanatics Buys Topps
Speculation becomes reality and allows Topps to remain part of baseball cards.
Earlier in 2021, Fanatics acquired the licenses from Major League Baseball and the MLB Players Association to produce baseball cards.
Early last week, speculation that Fanatics might purchase Topps became reality.
The announcement that Fanatics would acquire Topps came this past Tuesday. The deal includes the trading card and collectibles divisions, while Topps retains control of its candy/confectionary business and gift card business.
Fanatics caught some by surprise when the company received the exclusive license from MLB and MLBPA, then later acquired exclusive licenses from NBA, the NBA Players Association and the NFL Players Association.
Topps held the baseball licenses and was set to produce its last sets in 2022, but Fanatics purchasing Topps means the brand will still be associated with baseball cards.
Panini still holds the exclusive licenses for NFL and NBA trading cards, but when those licenses expire, Fanatics will take over, likely with the Topps brands returning to those sports. There's no reports yet of Fanatics getting the NFL Properties license, but one would expect that to be a formality.
This was about as good of a development in the trading card market as one could hope for. Topps brands will continue to be a part of baseball and their return to football and basketball will be welcomed by many.
The question remains the approach that Fanatics will take. I've previously written that Fanatics would be wise to offer at least one brand that is widely distributed, reasonably priced and targets kids and younger collectors.
I would also hope that Fanatics will keep the local hobby shops in mind with its business plan. While there has been more interest in non-fungible tokens (NFTs) in the trading card market, I believe there is still a place for actual trading cards, and local hobby shops are a big part of that.
Furthermore, while there is plenty of appeal in ordering cards online and even going to a Walmart or Target (even with flippers being a problem), there's something to be said about the relationship with a local hobby dealer and the chance to strike up conversation with fellow collectors.
It’s worth noting that Fanatics CEO Michael Rubin said he wants to make sure local hobby shops are part of the business model. Here’s hoping he delivers on that.
But the good news is Topps will still be around in the trading card market for several major sports. Now we'll see what Fanatics has in store next.