Privately held sports merchandising company Fanatics has acquired Topps trading cards in a deal valued at $500 million U.S.
The acquisition only includes Topps’ name and sports and entertainment division, not the company’s candy and gift cards line.
The agreement comes after Fanatics captured Major League Baseball’s (MLB) trading card rights last August. MLB renewed its deal with Topps in 2018, and the existing deal ends in 2025. But with this agreement, Fanatics will obtain MLB’s trading card rights immediately.
Fanatics will also obtain rights for Major League Soccer, UEFA, Bundesliga, and Formula 1. Those leagues also have active agreements with Topps trading cards.
Last year, Fanatics also secured trading card licenses for the National Football League Players Association and National Basketball Association. To land these agreements, Fanatics provided equity to leagues and player unions that is guaranteed to bring at least $1 billion U.S. in revenue over the duration of the partnership.
Fanatics, which reached an $18 billion valuation in 2021 and is expected to hold an initial public offering (IPO) this year, wants to expand the trading card business with more direct-to-consumer commerce.
When collectors purchase a trading card, they’ll be able to insure, grade, store and even put it on a marketplace to sell or trade through Fanatics. The company is capitalizing on a sports trading card business that is projected to reach $98.7 billion U.S. by 2027, according to Verified Market Research.
Acquiring Topps also aligns with Fanatics’ plans to build out its non-fungible token (NFT) collectibles sector through its Candy Digital company, which has exclusive rights to produce MLB digital artwork.
Topps was a publicly traded company before being taken private following a $385 million U.S. deal in 2007. The company was founded in 1938 and became well known for its distribution of trading cards, including the 1952 Mickey Mantle card, one of which sold for $5.2 million U.S. in January 2021.
