Court finds Fanatics conspired with NFLPA, MLBPA to license trading cards on exclusive basis

Fanatics' effort to parlay its merchandising strength into a one-stop shop for all sports-related purchases included an entry into the trading-card market.

And there have been growing pains.

The strategy has sparked antitrust litigation from Panini. Via Terry Lefton of Sports Business Journal, a federal judge ruled on Monday that the case should proceed to the discovery phase. In so doing, the presiding judge said this: “There was a conspiracy between the NFLPA, the MLBPA, and Fanatics to license both players associations’ intellectual property on an exclusive basis.”

The decision allows Panini to pursue antitrust liability, including a possible court order "against the implementation of the exclusive long-term arrangements" to produce and sell trading cards.

Panini previously won a multi-million-dollar arbitration ruling against the NFLPA for the 2023 cancellation of its contract with Panini.

The court also dismissed multiple claims made by Panini against Fanatics, including tortious interference with business relations.

“Panini is just using this lawsuit as a tool to deflect from its own failings in a desperate attempt to slow down Fanatics,” a Fanatics spokesman told Lefton. “The facts will show that Panini has lost touch with its consumers and continues to be unwilling and unable to keep pace with what collectors and the hobby want.”

Panini, obviously, sees it differently.

“We are gratified by the federal district court’s decision which upheld Panini’s principal antitrust claims and state law claims against Fanatics," attorney Stuart Singer said on behalf of Panini. "Preserving meaningful competition in the global sports trading card business is critically important for fans, players and collectors."

The case will continue. Given that it was filed in August 2023, it will probably linger, for a while.