If someone could help run these numbers as they don't quite make sense to me so i am probably missing something. If they are at least somewhat accurate this is also why i agree a merger between Topps and Fanatics is coming after Topps has a chance to cool down.
If Topps is paying the MLBPA 20+ Million a year and Fanatics deal is worth 10x that, then Fanatics would be paying about 200+ Million a year?
Topps currently has 2 years left on there MLBPA deal so that would lead me to think Fanatics thinks Topps is underpaying MLBPA by 180 Million a year for those 2 years. (360 Million for 2 years)
If the deal with MLB is similar (i have not seen any numbers for this part) and they have 4 years left on that deal - if 180 Million for 4 years (that would be about 720 Million over the 4 years).
This would create an value to Fanatics (since they are paying the new rate and feel they are worth that much) of the licenses at 1.08 Billion for the rest of the current deal Topps has with MLB and the MLBPA. Since Topps was going to go public at a deal of about 1.3 Billion why would Fanatics not buy Topps for the 1.3 Billion (or a little less) and just sell off the parts they don't want. They would get all the IP including the history of Topps. After selling the parts of Topps they don't want they would end up paying less for the licensing for the next couple of years.
The numbers seem too close together to not do it. They would also be in control of the card market sooner and would not allow Topps to cannibalize the current market. I would assume the same would hold true for the other licenses as well. Any thoughts?
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