With the popularity of digital trading cards on the rise, Fanatics, a licensed sports goods company based in the US, has announced the acquisition of trading card company Topps. In this $500 million acquisition, Fanatics will obtain Topps’ licensing rights for both physical trading cards and its digital NFTs counterpart business.
This idea has been under consideration since August 2021, when the MLB and MBLPA parted ways with Topps after a 70-year collaboration. This deal’s demise resulted in Topps teaming up with Fanatics as their exclusive trading card licensing partner. Furthermore, as part of the agreement, Fanatics’ digital collectibles arm, Candy Digital, has exclusive rights to make MLB NFTs.
Another addition to Fanatics
With Topps remaining MLB’s trading card partner until 2025, Fanatics’ acquisition will see it take over that partnership immediately. This agreement is certainly exciting, as it adds to Fanatics’ growing portfolio of trading card licensing rights.Fanatics partnerships already include Uefa, the Bundesliga, Major League Soccer (MLS), and Formula One. Trading cards and collectibles are a significant pillar of Fanatics’ long-term plans to become the leading digital sports platform. With this in mind, the company is certainly excited to add a leading trading cards company to the team.
This is not the only accomplishment Fanatics has achieved as it seeks to expand its trading card business. They also reached settlements with the National Football League Players Association (NFLPA) and the NBA. Fanatics provided equity to the leagues and players unions in exchange for a revenue guarantee of at least $1 billion over the course of the NFL and NBA partnerships.