They still own the rights to produce basketball and football cards for at least two more seasons but Panini America says the company that’s scheduled to eventually take over those licenses is making things difficult. Panini filed a 56-page federal antitrust lawsuit against Fanatics on Thursday, alleging Fanatics has interfered with its existing contracts for trading card production and made other moves that violated Panini’s ability to conduct business.
“Fanatics has done all this Anticompetitive Conduct to monopolize the markets for Major U.S. Professional Sports Leagues trading cards (and others) even before its exclusives begin,” Panini alleges in the suit, which was filed in a Florida court. “In short, Fanatics seeks to cripple Panini both for the short term— the remaining years on Panini’s current exclusive license agreements—and the long term.”
Fanatics quickly responded to the legal action.
“Panini’s lawsuit is a baseless last-gasp, flailing effort by a company that has lost touch with its consumers, is failing in the marketplace and has tried unsuccessfully for years to sell itself,” a company spokesman relayed to SC Daily. ” Panini is trying to blame Fanatics for its own inability to keep pace with what players, fans, and even its own employees rightly want. It is hardly surprising that Panini received a ‘F’ grade from the better business bureau.”
Panini holds the NBA Players Association license for trading cards until September of 2025 and the NFL and NFLPA license through 2026. As part of long-term partnership deals with the leagues and players, Fanatics is then set to take over those licenses, but it’s no secret they’re hoping Panini will surrender sooner. Panini has no intention of doing that.
“Panini was not given an opportunity to bid or otherwise compete for the licenses Fanatics acquired,” the company stated in its suit. “Panini only learned about Fanatics’ exclusive agreements after they were consummated, through reading about them in the media,” the company claims in the lawsuit.
As part of its push to control the majority of the licensed trading card space, Fanatics secured a deal with Major League Baseball and its players. That 20-year deal quashed the plans of Topps’ former ownership to take the company public. “The reality was that Topps had almost no choice but to sell,” Panini stated in its suit. “This practical effect of its exclusive deals was what Fanatics intended all along, which was that not only would Topps give in, but Panini would also fall like a domino in the wake of Fanatics’ Anticompetitive Conduct.”
In its court filing, Panini confirmed what had been known by industry insiders: In March of last year, Fanatics acquired the Texas company that prints the majority of its cards, putting Panini in the awkward position of working with a Fanatics owned company to create its products.
“Fanatics acquired through two transactions a controlling stake in GC Packaging, LLC (GCP)—the critical, high-tech, custom manufacturer of trading cards for Panini,” court documents state. “This acquisition—a direct violation of GCP’s contractual obligations to Panini—was taken to undermine Panini’s ability to perform even in the short run under Panini’s existing licenses thereby hoping to force Panini into a sale.
“Because Fanatics has control over GCP, Panini is now beholden to Fanatics for its lifeblood—the production of nearly all its trading cards.”
In its filing, Panini also confirmed what we had reported earlier this year: at least three dozen of its employees left for Fanatics in a brief period of time last spring, “Panini’s entire acquisition and product-development team,” the company stated in the suit, which claims “threats and enticements” were made to them.
Panini claims Fanatics interfered with the contracts those employees had with Panini. That situation has already resulted in a suit filed by Panini against Fanatics in Texas. Panini also claims Fanatics threatened them “with not working in the industry ever again once Panini’s licenses expired unless those employees committed immediately to join Fanatics.
“And in some cases Fanatics went even further, telling Panini’s employees that it would soon take over Panini’s business before its (NFL and NBA) licenses expired and thus Panini—and with it these employees’ jobs—would no longer exist,” attorneys for Panini stated. “So if these employees wished to continue in the industry, Fanatics’ story went, they needed to join Fanatics immediately.”
Panini claims Fanatics also attempted to hire its CEO, Mark Warsop.
Panini also cited Fanatics’ efforts to sign young players to exclusive autograph deals that prevent those players from signing cards for Panini and claimed Fanatics executives have made disparaging remarks to players, agents and Panini employees. “Fanatics has told these third parties that Panini is incapable of performing for them, will be out of business soon, and lacks the money to pay them. These statements are false.”
In the suit, Panini admitted it had long been acquiring some of the non-game-worn jersey swatches it uses on its cards from Fanatics.
“Fanatics’ CEO, Michael Rubin, approached Panini in May 2023 to threaten that Fanatics would no longer supply Panini with any jerseys for Panini to offer to consumers as elements of its trading cards,” the suit states. “Rubin added that Fanatics would not stop its pressure campaign against Panini and would continue to sign exclusive deals with players that Panini could otherwise use to offer fully licensed trading cards to consumers.”
Panini seeks unspecified damages as well as divestiture of Topps and GC Packaging.
On Friday, Panini America released a statement regarding its decision to file the antitrust suit:
“Since entering the U.S. market in 2009, Panini America’s goal has been to bring new collectors and consumers into the trading card category, rejuvenate the marketplace to benefit everyone from mass retailers and hobby stores, our licensed partners at the leagues and players associations and the individual athletes that we highlight and contract to individual deals to develop the most compelling products.
All while catering to the consumer and growing the overall trading card category globally.
Throughout our 60+ year history as the Panini Group and our fifteen-year history in the U.S. market with Panini America, we have driven the trading card category to unprecedented heights never before witnessed among our licensed partners and players through the development of the industry’s most popular trading card brands.
All with the primary focus on the consumer in allowing them to collect and consume our products however they want.
We have done this and continue to do this through product innovation, integration of new technologies, diversified sales distribution channels, marketing and strategic collaborations.
Panini America was the first of any trading card manufacturer to embrace, support and welcome casebreakers into the trading card community recognizing that how they consumed the product opened the door to engaging more consumers and building new collectors. This element helped provide a roadmap for how hobby stores could execute and engage their customers during one of the most challenging periods businesses experienced when customers couldn’t get to stores.
Panini America introduced digital trading card apps in 2015 and was the first and only trading card manufacturer to launch it’s own blockchain/NFT platform in 2020 – a space that we continue to remain committed to because that’s where a segment of our collectors choose to experience the world’s most popular trading card brands.
The Panini Group and Panini America is the only trading card manufacturer with a truly global reach with more than 16 subsidiaries around the world, a dedicated direct-to-consumer platform in China that caters to more than one million followers and ensures that our licensed partners can reach fans of their respective sport through trading cards all over the world.
The Panini Group and Panini America remain committed to growing the overall trading card category across the entire global ecosystem to cater to consumers, our licensed partners and our professional and NIL athletes. As the market leader we take that responsibility seriously, and we will protect and defend our company’s mission as well as maintaining the overall health of the trading card category for all of those involved.”
Fanatics, which wasn’t shocked by Panini’s attempts to disrupt its efforts to further push into the trading card space, will likely file its legal response in the coming days.
“At Fanatics, we remain focused on innovation, and working to improve an industry that has been sleepily led by Panini for years. Our fresh approach – which finally enables players to better connect with their fans and to earn a fair share of the value they have created – is working, and our partnerships with leagues, teams, and players are proof of that,” the company stated Thursday. “Panini’s meritless allegations won’t distract us or slow us down, and we will vigorously defend the lawsuit. Fanatics remains committed to providing a better model for our partners and creating the best possible experience for collectors across the globe.”
