The everchanging trading card landscape takes another turn
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Another day. Another Fanatics gut punch to Panini.
The big news on Monday was the NFL Players Association, the arm that controls the use of players’ names and likenesses, terminated its contract with Panini and has immediately awarded Fanatics a new contract, according to Acton Network’s Darren Rovell.
This gave Fanatics the NFLPA license three years earlier than expected.
What does it all mean?
No one really knows yet. It’s all speculation. There’s no word yet on when new football products will be released and what they will look like.
Here’s what we do know:
NFLPA has terminated its exclusive contract with Panini
NFLPA has granted Fanatics exclusive rights three years earlier than expected
Fanatics has exclusive rights for autographs for three of the top NFL rookies
Fanatics has a football brand team already in place (of former Panini employees)
Fanatics and Panini are suing each other, and it will take years to untangle
Here’s what we don’t know:
Everything else
Fanatics signing autograph deals to Bryce Young, CJ Stroud and Will Levis could have had a huge impact on what we are seeing now.
Without autographs of those big players, who are expected to be the most valuable rookie cards in 2023 products, the value of product is lower – and potentially forcing Panini to miss their guarantees.
Panini may already know this. NFLPA may already know this.
And nothing ends a partnership quicker than when money is involved – or lack of money.
Again, all speculation, but each move affects the next one and the next one. They’re all connected.
When it comes to license negotiations, trading card companies purposefully have the deals with the leagues and players associations end in different years. You never want to have everything potentially end the same year, so it gives card companies a bit of leverage the next time they come to the negotiating table.
But the players associations hold most of the power.
Cards can exist with players and no logos. They aren’t the most favored types of cards, but they work.
It’s much more difficult to make cards without players and just league marks. Not impossible but also not cost effective.
There are still so many questions that need to be answered such as when will new NFL product arrive and what happens to current redemptions. Panini has already released a couple of pre-season products, but it’s unknown if it will release any new ones if they have been printed.
It wouldn’t be surprising if this situation ends up in court.
Because the only winners in this battle are the lawyers.
Update: Panini responded to the new via Rovell:
It states “We believe this was a totally unwarranted and improper action by the NFL Players Association in conjunction with Fanatics, especially in light of the unprecedented sales by Panini of NFL Trading Cards.”
Read the full statementhere.