Topps out---Fanatics in

[Cam Brady]

Originally Posted by babybull

They can't do this without Topps people.

Narrator: They will absolutely do this without Topps employees

[JRX]

Originally Posted by slambam

Ding ding ding. Just stupid. No license for the company who's been producing cards for decades. Complete BS that they only allow 1 licensee.

They don't care, its about how much money they can squeeze out of their license over the short term. Fanatics could also probably just eat it if the market collapses. If anything this is just a way to funnel money to the owners and players. Much like ticket paying fans, they don't care about you. "Where else you gonna go, now buy this product"

[smanzari]

Originally Posted by whitmm

I hate to say it, but I think you underestimate how many people already buy it. There's still more in the collecting community than what you see on blowout. And if it's the only thing, people will still flock to it. Anything to make a quick buck.

MLBPA also signed with Fanatics meaning no more Panini or Non-Logo'ed cards of current players unless they're not in MLBPA

[Glowbug27]

Originally Posted by slambam

Ding ding ding. Just stupid. No license for the company who's been producing cards for decades. Complete BS that they only allow 1 licensee.

They allow 1 licensee because the licensee paid a ton of dough for exclusivity.

[jayjay0122]

So is this basically the beginning of the end for companies like Blowout and Dave & Adams?

[Cam Brady]

Paying $200 million (10 times what Topps paid the MLBPA in 2020) for the rights doesn't make sense. Thats an entire quarter of Topps current sales.

[JRX]

Originally Posted by jayjay0122

So is this basically the beginning of the end for companies like Blowout and Dave & Adams?

They'll be replaced with a Fanatics shop run by people making minimum wage.

[JRX]

Originally Posted by Cam Brady

Paying $200 million (10 times what Topps paid the MLBPA in 2020) for the rights doesn't make sense. Thats an entire quarter of Topps current sales.

Was it a legitimate business plan or was it just a way to funnel money to the players and the league? Based on what they paid, it doesn't seem like they could make it back.

[smanzari]

Originally Posted by jayjay0122

So is this basically the beginning of the end for companies like Blowout and Dave & Adams?

Depends on the Distribution plans of Fanatics and the specifics of the contract with MLB, could also have implications on current distributors

[Doublexthebeast]

Originally Posted by smanzari

MLBPA also signed with Fanatics meaning no more Panini or Non-Logo'ed cards of current players unless they're not in MLBPA

That’s a big part of this deal which makes it even worse. Essentially, a dual license which allows for only 1 manufacturer like NBA.

[Aston14]

Originally Posted by Cam Brady

Paying $200 million (10 times what Topps paid the MLBPA in 2020) for the rights doesn't make sense. Thats an entire quarter of Topps current sales.

Probably factors in the ownership stake that the MLBPA is getting in the venture. In addition to the license fee they will get a percentage of profits.

[Glowbug27]

Originally Posted by Cam Brady

Paying $200 million (10 times what Topps paid the MLBPA in 2020) for the rights doesn't make sense. Thats an entire quarter of Topps current sales.

That is called big business. Read the stories about how Walmart would sell milk so cheap at its stores when it would move into a new neighborhood that the Mom and Pop stores would buy their inventory at Walmart's stores to sell in their stores with the idea that Walmart would ultimately drive them out of business.

[IntergalacticSp]

Originally Posted by JRX

Was it a legitimate business plan or was it just a way to funnel money to the players and the league? Based on what they paid, it doesn't seem like they could make it back.

Fanatics is buying at the top of the market. More than likely they justified their bid using optimistic projections of growth that will not materialize in the future. Happens all the time in the business world to supposedly smart people.

[redauto5]

Originally Posted by JRX

2 years without fully licensed cards could also sink the baseball card hobby.

Naa, we will get an 86-87 Fleer like set in 2025 and everyone will clamor for it. Meanwhile, hobbiests get bored without anything to rip for 2 years and singles prices go through the roof!

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[imbluestreak23]

Where did it say that Fanatics paid 10X what Topps paid in 2020?

If Fanatics did that we are all doomed. That essentially means that for Fanatics to make a profit, sales need to 10X from Topps 2020 baseline number which means:
-10x more product and/or
-10x higher print run when print runs are already stuipd high and/or
-10x less autographs because yah know those cost money and/or
-10x less REAL GAME USED items because yeah, yah know those cost money too and Fanatics has an endless supply of replica swatches from jerseys to gloves, helmets, balls, etc. Endless supply of worthless junk to insert into cardboard.

[mcwildcats]

Originally Posted by imbluestreak23

Chrome refractors and Topps flagship rare will increase substantially in value over the next 5 years.

Happened with Topps basketball, it will happen again. If there is a superstar rookie class in 2022 or 2023, those cards will become iconic if it's a deep RC logo class or Bowman Chrome class.

IF?! Wander says hello.

[possaw]

So crazy. I cannot imagine a world without topps baseball


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[Glowbug27]

Originally Posted by IntergalacticSp

Fanatics is buying at the top of the market. More than likely they justified their bid using optimistic projections of growth that will not materialize in the future. Happens all the time in the business world to supposedly smart people.

Way simpler than that. Fanatics paid to clear the competition out of their new business venture, trading cards. If you have the resources to pay to do it, you can do that.

[pewe]

Originally Posted by imbluestreak23

Where did it say that Fanatics paid 10X what Topps paid in 2020?

If Fanatics did that we are all doomed. That essentially means that for Fanatics to make a profit, sales need to 10X from Topps 2020 baseline number which means:
-10x more product and/or
-10x higher print run when print runs are already stuipd high and/or
-10x less autographs because yah know those cost money and/or
-10x less REAL GAME USED items because yeah, yah know those cost money too and Fanatics has an endless supply of replica swatches from jerseys to gloves, helmets, balls, etc. Endless supply of worthless junk to insert into cardboard.

Is it 10x / year?

BTW remember they also take out Panini with this move, so they already gain some benefit there


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[Aston14]

There was a memo to players from the head of the MLBPA explaining the deal. Again, I assume the number includes the ownership stake that the union is getting in the new venture.

[Southpaw73]

2025 I believe… brutal


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[Cam Brady]

Originally Posted by imbluestreak23

Where did it say that Fanatics paid 10X what Topps paid in 2020?

If Fanatics did that we are all doomed. That essentially means that for Fanatics to make a profit, sales need to 10X from Topps 2020 baseline number which means:
-10x more product and/or
-10x higher print run when print runs are already stuipd high and/or
-10x less autographs because yah know those cost money and/or
-10x less REAL GAME USED items because yeah, yah know those cost money too and Fanatics has an endless supply of replica swatches from jerseys to gloves, helmets, balls, etc. Endless supply of worthless junk to insert into cardboard.

Gotta find an article that Tony Clark is quoted in.

[pewe]

Originally Posted by Glowbug27

Way simpler than that. Fanatics paid to clear the competition out of their new business venture, trading cards. If you have the resources to pay to do it, you can do that.

They’ve become the US Steel or Standard Oil of the trading card world


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[redauto5]

Originally Posted by ThoseBackPages

my body is not ready

Mine either buddy, mine either. Super sad day but it seems like us OG types have been grieving what was for a year or 2 now. This just cements that. We will adjust and can still have fond memories of 1991 Fleer Chris Sabos.

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[imbluestreak23]

Originally Posted by pewe

Is it 10x / year?

BTW remember they also take out Panini with this move, so they already gain some benefit there


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Good question, I wasn't sure if those quoting 10x meant $200 million/year or $200 million for life of license (presumably < 10 years because if it was $200 million/10 years, that's what Topps was paying on a per year basis)