Topps to be replaced as the BB Card Manuracturer

[Aquarian Sports Cards]

Is there any chance that the timing of all this has repercussions? I don't know a ton about big business and mergers and what is and isn't kosher, but the timing of the Fanatics announcement clearly seems intended to queer the Topps merger deal. If they then pick up Topps at a discount, is that all squeaky clean and just legal corporate raiding at its best?

[mrreality68]

Originally Posted by Aquarian Sports Cards

Is there any chance that the timing of all this has repercussions? I don't know a ton about big business and mergers and what is and isn't kosher, but the timing of the Fanatics announcement clearly seems intended to queer the Topps merger deal. If they then pick up Topps at a discount, is that all squeaky clean and just legal corporate raiding at its best?

Like you I do not know that the side of the business and anything is possible. But I think with Topps reputation, brand recognition, and great history they will be fine either way. Or perhaps they will be bought out or merger with another company.

But hopefully the competition makes for some new and amazing stuff

[Rookiemonster]

Ok let’s talk in a healthy manner we can all make a list of positives and negatives.


Rich thanks for posting I wanted to yesterday but was afraid of everyone in pre war guys screaming to get off their lawn.

First negative: I was really looking forward to the 80s heritage sets.

First positive: it’s a bigger company and they can really open the retail market for cards to everyone everywhere.

[carlsonjok]

Originally Posted by Rookiemonster

First positive: it’s a bigger company and they can really open the retail market for cards to everyone everywhere.

Counterpoint: with private equity involved and MLB and the MLBPA having an equity stake in the company, my expectation is that they will emphasize the high end of the hobby where the margins are better. I just don't see a lot of easy profit in distributing packs to retail stores for sale to kids.

I hope I am wrong.

[Rookiemonster]

Originally Posted by carlsonjok

Counterpoint: with private equity involved and MLB and the MLBPA having an equity stake in the company, my expectation is that they will emphasize the high end of the hobby where the margins are better. I just don't see a lot of easy profit in distributing packs to retail stores for sale to kids.

I hope I am wrong.

None of us can see the future but it’s certainly a possibility.
High end is its own machine. Lower end packs and other products can make you the same amount of money. They already have retail in most major sports areas.
It won’t hurt them to throw some affordable packs and blasters.

[polakoff]

Lots of sentiment around the Internet about Fanatics buying Topps. Remember that Topps makes most of its money on things that are not baseball cards. They are one of the top (if not the top) non-chocolate checkout candy manufacturers in the country. They have the soccer license as well as maybe the most important non-sports property in Star Wars, plus proprietary things like Garbage Pail Kids. I don’t think Fanatics wants to be in the candy and non-sports card market.

I find it more likely that Fanatics finds a way to license the Topps name. Some kind of deal in 2024-2025 that would allow them to utilize Topps’s MLB contract for logos and team names, and then use Topps’s IP thereafter. Think of it as “Topps x Fanatics” the way Topps does other collaborations. Topps Allen and Ginter by Fanatics, or what have you.

If there’s an acquisition I find it more likely they try to acquire Panini. Fanatics is huge in China, Panini is huge in Europe. They’ve got the globe covered (apologies to Australia and Africa) with that acquisition. Plus Panini has redefined two major sports in the last decade and those brand names like Prizm would be arguably more important to Fanatics than Chrome ever could be.

If they wanted to be really smart about it though they’d acquire Upper Deck which would come at a fraction of the price. That gives them the Michael Jordan exclusive, plus gives them the hockey license, thereby giving them all 4 sports. And in addition to all the Upper Deck brands you also get all the Fleer brands. Nostalgia central. That’s the play Fanatics should be making. They don’t need Topps.

[Directly]

Is the future of sports cards to be sold through Fanatics or someone else going to be digital. I heard we might wear some sort of special glasses and view our collection on the wall. Why print, package, ship cardboard, and basically cut out the middle man, look at the cost saving and profit margins--
This may sound science fiction and far out, but could this possibly be the norm for our future generations of collectors?

[Snowman]

Originally Posted by Aquarian Sports Cards

Is there any chance that the timing of all this has repercussions? I don't know a ton about big business and mergers and what is and isn't kosher, but the timing of the Fanatics announcement clearly seems intended to queer the Topps merger deal. If they then pick up Topps at a discount, is that all squeaky clean and just legal corporate raiding at its best?

I'm very ignorant about legal matters such as this, but it seems to me like it wouldn't matter when they made the announcement because regardless of they announced it today or 3 months from now, it would still have the same effect of greatly devaluing Topps. The timing of it affects who might be holding the Topps bag when it happens, but from fanatics perspective, whenever they announce, Topps value plummets and they can probably acquire them for pennies on the dollar. Investing in a company whose entire valuation is tied to a licensing deal seems like a risky investment to me. If they lose that license, they go from hero to zero overnight.