Fanatics acquiring Topps in ground-breaking move

Fanatics acquiring Topps in ground-breaking move

Fanatics has acquired Topps’ physical and digital collectibles business for $500million, which is a major step in the merchandiser’s aggressive move into the trading card industry. The deal for Topps Sports & Entertainment adds more pieces to the plan Fanatics first made clear with a series of industry-rattling deals in August, acquiring exclusive long-term rights to produce cards with the Major League Baseball Players Association, Nationsl Football League Players Association, National Basketball Players Association, Major League Baseball and the National Basketball Association.

By acquiring Topps, Fanatics no longer has to wait for Topps' existing deals with Major League Baseball and Major League Baseball Players Association to expire. Topps still controls Major League Baseball rights through to 2025 and its union’s player rights through the end of this current year, rights that now will be owned by Fanatics. The Topps brand will continue under Fanatics ownership and will produce cards in 2022. Fanatics also gets Topps’ rights to produce cards for Major League Sosscer, F1, UEFA and Bundesliga.

Founded in 1938, Topps has long been a dominant name in trading cards. However, its future was thrown into turmoil instantly with Fanatics’ deals in August, because the collectibles depend on both league and player group rights. The deal does not include The Topps Company’s confectionary business, which will stay with its current owners, a source said.

Topps, owned by the private equity firm Madison Dearborn and former Disney Chair Michael Eisner’s Tornante Company, who also own Portsmouth F.C., where Michael Eisner is the Chairman, last year had plans to go public via a Special Purpose Acquisition Company controlled by hedge fund manager Jason Mudrick, but the deal collapsed after the Fanatics licenses news broke.