Panini last week brought a legal action of antitrust against Fanatics, charging that it had taken part in "calculated, intentional, anticompetitive conduct" to establish a monopoly in the trading card sector. On Monday, Fanatics responded by filing a countersuit, claiming interference with business ties and violation of a due duty to bargain in good faith. This conflict is centered on the licensing rights for NBA and NFL trading cards.
Sports platform Fanatics and competitor Panini are currently in a legal battle, with Panini filing an antitrust lawsuit against Fanatics alleging that it had engaged in "calculated, intentional, anticompetitive conduct" to establish a monopoly in the trading card industry. On Monday, Fanatics responded with a countersuit alleging interference with business relations and a breach of duty to negotiate in good faith.At the heart of the dispute is a licensing issue for professional sports league and their associated trading cards. Currently, Panini has the exclusive rights to produce trading cards for both the NBA and NFL since 2009 and 2016, respectively. Fanatics secured long-term deals with both leagues and their unions to take over the exclusive rights in 2025 and 2026.Panini claims it was not given an opportunity to bid for the licenses Fanatics acquired. Fanatics maintains it was due to a superior offer and Panini's "failure to capitalize on its opportunities."Fanatics, started as an e-commerce platform in 2011 and has since branched out to trading cards and collectibles and sports betting. In 2021, the company signed a deal with MLB and its players association to become the exclusive licensee of baseball cards, terminating the 70-year relationship between Topps and MLB. Topps was later acquired by Fanatics in January 2022. In September 2021, the company's specific trading card business was valued at $10.4 billion after a $350 million Series A round, and in December Fanatics raised $700 million to bring its valuation to $31 billion. The NBA and MLB, as well as their player unions, possess equity stakes in the company as part of their licensing deals.
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