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Merchandiser Strikes with Deal NBA, MLB, and NFL Player Associations
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Source: sportico.com
The world of trading cards has exploded over the past few years, with card values rising exponentially, and the total asset class for trading cards surpassing multi-billions. You may have come across videos and stories of long lines outside department stores to buy packs of hockey, football, or even Pokemon cards. The craze got so intense, Target had to temporarily suspend the sales of trading cards after a string of violent incidents in their stores. The allure of striking gold within a pack of trading cards has attracted investors, sports fans, and collectors alike - and created a new brand of trading card fans.
And where there are fans, there’s Fanatics. The sports retailer and merchandiser have made some big steps into the trading card industry, striking deals with the NBAPA, NFLPA; and most recently the MLBPA, to produce licensed trading cards with the name, image, and likeness of NBA, NFL, and MLB players. The current deals end in 2025 and 2026, after which the Fanatics deals will take over.
This is huge news for the trading card industry, and for the sports industry overall. The current producer of MLB trading cards, Topps, has been producing MLB cards since the 1950s, but with the Fanatics deal rumoured to be 10 times greater than the current deal with Topps - it shows the gravity of the investment that Fanatics had to make to encourage the MLB to move on from tradition.
Fanatics is clearly planning on making a huge splash with these deals (could the NHL be next?), and in order to continue growing the trading card business, it will take much more than just printing and distributed trading cards. Brands like Panini and Topps are synonymous with trading cards, and part of the trust consumers have in card value comes from the company that produces them. Fanatics has a big task on their hand to capture the momentum that its predecessors spearheaded.
However, there is reason to be excited about this new venture. As a global leader in sports merchandising, particularly on digital platforms, Fanatics is in a unique position to take trading cards to the next level. With the emergence of Sports NFTs as the next stage of sports hobbies/collections, Fanatics can leverage their digital platforms and build a stronger foundation for NFTs. By tying exclusive digital trading cards to merchandise, there’s an opportunity to help connect the traditional consumer to the tangible goods and experiences they crave within a digital product - helping to change behaviours and transition the trading card business over to the 21st century. With the rise of NBA TopShot, and exclusive athlete NFTs, Fanatics could be the face of the digital revolution of trading cards.
One final note - this could be very lucrative for athletes, who will be receiving a share of the revenue through these deals. Working with Fanatics to create their own signature trading card can create a new path for athletes to express themselves and engage with their fans. Fanatics has also shown an investment in athletes through education and externship programs, which will hopefully grow with their increased presence in athlete branding and merchandising.
Published: September 3rd, 2021 - Issue 6 of The Sport Marketeer