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#The Wall Street Journal: MLB drops Topps in favor of Fanatics in huge trading-card shakeup

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“#The Wall Street Journal: MLB drops Topps in favor of Fanatics in huge trading-card shakeup”

Topps has been planning to go public via SPAC

Major League Baseball and the Major League Baseball Players Association have struck new exclusive baseball card agreements with a new company controlled by online sports-merchandise retailer Fanatics Inc., breaking the decades-long grip that incumbent icon Topps Co. has held on the trading-card market, people familiar with the matter said.

The deals signal the beginning of a sweeping reorganization of the trading-card universe. In a memo sent to baseball players Thursday, MLBPA executive director Tony Clark said “other significant sports properties also separately have agreed to exclusive licenses with (the new Fanatics company) in the trading cards category” but didn’t name specific leagues or players’ unions.

The MLBPA deal begins in 2023. MLB’s current agreement with Topps runs through 2025.

Clark wrote in his memo that the undisclosed total value of the MLBPA deal is more than 10 times bigger than any deal the union has ever struck. He added that it is part of a series of recent deals that will generate nearly $2 billion through 2045.

Topps, the longtime incumbent, is in the process of going public through a combination with a special-purpose acquisition company. That deal, with Mudrick Capital Acquisition Corp. II
MUDSU,
-6.89%,
valued the combined entity at about $1.16 billion, the companies said when they announced the deal in April. Topps released its second-quarter earnings on Wednesday, announcing that sales had increased by 78% and raising its outlook for the year.

An expanded version of this report appears on WSJ.com.

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Jared Diamond

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