Panini vs. Fanatics: Lawsuit Breakdown and Consumer Impact

Background

In 2021, Fanatics made a major move in the trading card industry by securing exclusive, long-term licensing deals with the MLB, NBA, and NFLPA, disrupting the existing market. Previously, Panini held exclusive licenses for NBA and NFL cards, while Topps had been MLB’s card producer for over 70 years. Fanatics then acquired Topps in 2022 for around $500 million, solidifying its position as a dominant force in the industry.

With Fanatics set to take over NBA and NFL cards from Panini, Panini filed an antitrust lawsuit in August 2023, alleging that Fanatics had engaged in monopolistic behavior to control the sports card industry.

Key Legal Claims

Panini accuses Fanatics of:

• Engaging in anticompetitive behavior by securing exclusive licenses and preventing competitors from entering the market.
• Acquiring competitors (like Topps) to eliminate competition.
• Poaching Panini employees and disrupting business relationships by allegedly pressuring leagues and distributors to cut ties with Panini.

Fanatics counters that Panini’s lawsuit is an attempt to cover up its own market failures and asserts that Panini lost its licenses through fair negotiations with the leagues and player associations. Fanatics also filed counterclaims against Panini, alleging unfair competition and business interference.

Recent Developments

As of March 2025, a federal judge ruled that Panini’s antitrust claims could proceed, indicating that there are sufficient grounds for the case to be examined under antitrust laws. However, some of Panini’s other claims were dismissed, and Fanatics’ own legal counterclaims against Panini also saw partial dismissals.

Impact on Consumers

The legal battle could have several major implications for sports card collectors and the industry:

1. Market Competition

   • If Panini wins, we could see more competition, leading to diverse product offerings, better pricing, and innovation.
   • If Fanatics maintains exclusive rights, it could mean higher prices, fewer competitors, and more streamlined product lines.
   • Product Quality & Innovation
   • A monopoly might lead to complacency, affecting product quality.However, a dominant player like Fanatics could also invest in technology and product improvements.

2. Consumer Choice

   • Fanatics controlling all MLB, NFL, and NBA cards could reduce variety.
   • Panini remaining in the market could allow for alternative brands, giving collectors more options.

Potential Legal Outcomes

Here’s how different scenarios could unfold:

1. Settlement

• The most likely scenario is that Fanatics and Panini reach a settlement.
• This could involve financial compensation from Fanatics to Panini.
• Fanatics may also agree to allow Panini to retain certain rights or produce unlicensed cards in other ways.

2. Court Ruling in Favor of Panini

• If the court finds Fanatics’ deals violate antitrust laws, possible outcomes include:
  • Breaking up some exclusive contracts, forcing leagues to allow multiple manufacturers.
  • Fines or penalties imposed on Fanatics.
  • Panini regaining some rights, potentially for NFL or NBA cards.

3. Court Ruling in Favor of Fanatics

• If Fanatics wins the case, it will solidify its monopoly over major sports cards.
• This could lead to higher prices, fewer alternative products, and more centralized production under Fanatics.
• Panini may be forced to focus on non-licensed cards, international markets, or other sports.

4. Fanatics Buys Out Panini

• If the legal battle drags on, Fanatics could attempt to acquire Panini outright.
• This would eliminate competition, giving Fanatics control over all major sports licenses.
• A buyout would likely be worth hundreds of millions given Panini’s NBA and NFL history.

Final Thoughts

The outcome of this case will shape the future of sports cards for decades. If Fanatics becomes the sole producer of MLB, NBA, and NFL cards, collectors may face a more centralized but potentially higher-quality market. If Panini wins or forces a settlement, competition could continue, keeping options open for collectors.

Collectors and investors should keep a close eye on this legal battle, as it will determine the future of trading card availability, pricing, and innovation. 

Stay tuned and visit "32 News" for the latest developments!