Baseball Giant Topps Gets Saved

[Ted Schwerzler]

In August, it was announced that Fanatics had acquired licensing rights for trading cards from Major League Baseball. The trading card landscape was set to change, with Topps being the longstanding license holder. As of today, we have clarity on what it may look like.

 When Fanatics acquired the MLB license, the end of Topps making licensed trading cards would be seen following the 2025 season. However, the MLBPA license was set to expire following the 2022 season, which would have put an end to Topps using images or likenesses of any active players after this season. Effectively, when the calendar turned to 2023, Topps’ only available brand would’ve been their Bowman product. For collectors, this was unfortunate given the power of Topps as a brand and the uncertainty of Fanatics in the trading card space.

For a few months, there were rumblings and posturing from Fanatics. They had been looking into creating a marketplace to create, sell, grade, and ultimately own the card collecting space. Those tied to Fanatics have invested in a handful of different avenues with ties to the collectibles world, and fans were left wondering what was next. It always seemed logical that acquiring the Topps brand made sense, and it would undoubtedly drive sales more than a Fanatics branded trading card.
 
While months have gone by, the hopeful outcome has come to fruition. As reported by The Athletic’s Evan Drellich, Fanatics is set to acquire Topps in an announcement made public Tuesday. The deal is just for Topps’ trading card division, leaving the candy side and other assets untouched, and is reported to be worth $500 million. Fanatics also will own sole licensing of NBA (2026) and NFL (2027), which makes this purchase interesting for collectors. Panini America has held those exclusive rights in recent years, and Topps has not created branded basketball or football cards. Under this new acquisition, that presumably will change.

For collectors, this is the best news possible. Fanatics owns a monopoly over trading cards now, and they will also have arguably the most powerful brand in the space. Topps can be applied to baseball, basketball, and football trading cards under one umbrella. It remains to be seen what Fanatics will do with the brand and how they will distribute trading cards, but there’s plenty of room for growth.
 
While Topps has been a juggernaut in design and popularity throughout its existence, the most significant areas of problem have been distribution channels and customer service. Whether dealing with inept ways to put products directly in the hands of consumers or dealing with an endless cycle of non-answers on redemptions and other problem situations, Topps’ downfall has always been post-launch. Ideally, Fanatics can revamp this experience and pair it with the branding power they now will own. What once looked like an uncertain or unpleasant future has now revealed itself as a possible best-case scenario for those who love sports cards.
 
I’m not sure about you, but Topps Chrome basketball or Topps Finest football is something I’m ready to see again. Being able to continue collecting baseball with continuity is also a great thing.

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[tarheeltwinsfan]

$500 million has to be for more than just the branding rights, don't you think Ted? . I wonder specifically what is being acquired for $500 million dollars. The article states Topps is selling its digital and physical assests, so maybe machinery and possibly even plants and warehouses are being sold. By the way, does anyone want to buy a 1954 Henry Aaron rookie card for 1/5000 of the price being paid to Topps by Fanatics?   Ted, thanks for this timely article. The Topps brand is very sentimental to us old  baseball card collectors. 

[Ted Schwerzler]

6 hours ago, tarheeltwinsfan said:

$500 million has to be for more than just the branding rights, don't you think Ted? . I wonder specifically what is being acquired for $500 million dollars. The article states Topps is selling its digital and physical assests, so maybe machinery and possibly even plants and warehouses are being sold. By the way, does anyone want to buy a 1954 Henry Aaron rookie card for 1/5000 of the price being paid to Topps by Fanatics?   Ted, thanks for this timely article. The Topps brand is very sentimental to us old  baseball card collectors. 

Initially I thought the $500 million seemed light for a company with 70 years of baseball history. It is for just the collectibles division, both physical and digital. Topps keeps the confectionary arm but that still seems to be a lackluster amount. I think the reality here is that this was there only way forward and it benefits collectors in the long run.

[The Mad King]

I'd like to see someone market indoor lacrosse (NLL) trading cards. Grow the game.

[Rosterman]

Topps actually had very few assets as most of their products were licensed, so getting the next few years of the baseball card business in-house for this a amount satisfies Fanatics to get a jump start on their own business. Much of the mon ey will just go thru Topps and back out the door to honor licensing agreements already signed. Plus Fanatics now also owns the physical property of the negatives and other items, so they can reprint under new licensing agreements with MLB. Smart move overall for Topps, as basically the distribution network that made them thrive as card salespeople has all but expired. The new world is expensive graded and autographed and special items, virtual cards, and the ilk. 

 

[ashbury]

1 hour ago, Rosterman said:

The new world is expensive graded and autographed and special items, virtual cards, and the ilk.