File this under “I saw that coming”. Panini America has filed an antitrust lawsuit against Fanatics.
In the past couple years, Fanatics has signed deals with the NFLPA, the NBPA, the MLBPA, MLB and the NBA. In the years since they lost their deal with MLB we’ve seen Panini producing baseball cards with no team names or likenesses on them. Players played for “Cleveland” or “Los Angeles” and the team logos were airbrushed from the photos.
However, due to losing their deal with MLB, the 2023 releases have taken it a step further by removing active players and focusing exclusively on prospects and retired players. That means no veterans like Mike Trout, Ronald Acuna Jr, or Bryce Harper in 2023 Donruss or Prizm. Basketball and football seem to be headed in the same direction, once their deals with Panini expire in 2026.
With the release of their new live breaking platform, Fanatics has given plenty of indications that breakers will be unable to get Topps product allocation unless they break them exclusively on the Fanatics platform. Rumblings even indicate that Fanatics will insist shops open up their books to them to ensure they are not breaking products elsewhere online.
There’s certainly still a lot of uncertainty with how the industry will shake out, but it’s been clear for a while that a lawsuit would eventually be coming. My only question was whether it would be Panini initiating it or whether it would be a class action lawsuit.
Fanatics’ response to the Panini lawsuit was definitely not sugar-coated and, in my humble opinion, not very professional.
“Panini’s lawsuit is a baseless last-gasp, flailing effort by a company that has lost touch with its consumers, is failing in the marketplace and has tried unsuccessfully for years to sell itself. Panini is trying to blame Fanatics for its own inability to keep pace with what players, fans, and even its own employees rightly want. It is hardly surprising that Panini received a ‘F’ grade from the better business bureau. At Fanatics, we remain focused on innovation, and working to improve an industry that has been sleepily led by Panini for years. Our fresh approach — which finally enables players to better connect with their fans and to earn a fair share of the value they have created — is working, and our partnerships with leagues, teams, and players are proof of that. Panini’s meritless allegations won’t distract us or slow us down, and we will vigorously defend the lawsuit. Fanatics remains committed to providing a better model for our partners and creating the best possible experience for collectors across the globe.”
This is just the beginning…stay tuned for what looks to be a long roller coaster ride.
