Several months after Fanatics signed NBA superstar Lebron James to an exclusive wide-ranging trading cards and collectibles deal, Fanatics-owned Topps has signed an exclusive long-term global trading card deal with one of baseball’s biggest stars: Shohei Ohtani.
The new deal, which begins immediately, will include autographed and game-used memorabilia cards, focusing on both U.S.- and Japan-based products. Ohtani and Topps previously had a partnership that dated back to 2018, but that deal was non-exclusive. Ohtani also has an exclusive memorabilia partnership with Fanatics that focuses on selling autographed collectibles and products like jerseys and baseballs.
Since acquiring Topps for $500 million in 2022, Fanatics has looked to elevate the once sleepy industry of trading card collecting, aiming to grow the hobby with both casual sports fans who may buy a pack of cards at a big box retailer like Target or Walmart at the start of a season as well as the more investment-driven collector willing to pay hundreds of thousands of dollars for rare and unique cards.
David Leiner, president of trading cards at Fanatics Collectibles, said partnerships like this one with Ohtani help “push the category” and it goes beyond just having Ohtani sign cards that will end up randomly in packs.
“What we’ve tried to do with the top players in the world is not just have them sign 1,000 cards sitting in a hotel room for two hours,” Leiner said. “We want to bring them in as a true partner, help promote the products, understand the products, and design products with us.”
Ohtani, the two-time MVP who signed a record $700 million, 10-year contract with the Los Angeles Dodgers in 2023, is in the midst of another potentially historic season and is on track to potentially become the first player in MLB history to hit 50 home runs and steal 50 bases in the same season.
Leiner said Ohtani’s already massive global popularity will help further expand the Topps brand and trading cards. Less than 10% of Topps’ business is currently driven from outside North America, Leiner said, although that is “growing significantly.”
Topps does not disclose its revenue, but as part of a potential SPAC deal it floated in 2021, the company reported it had record sales of $567 million in 2020, a 23% year-over-year increase. That SPAC deal was later canceled after Fanatics acquired the MLB trading card rights, which ultimately led to Fanatics’ acquisition of the company.
Even amid larger consumer spending concerns, Leiner said that Topps is continuing to see growth, a reflection of the expansion of the trading card industry in recent years as well as Fanatics’ continued investment. “[Fanatics founder] Michael Rubin poured fuel on a fire,” Leiner said.
Beyond baseball, Fanatics has acquired the exclusive rights to distribute trading cards for several other sports, including the NBA and NFL in coming years.
“The business is as healthy as it has ever been,” Leiner said, adding that the company is seeing expansion across the various lines of its business from direct-to-consumer offerings to hobby shop sales and retail and within the secondary market.
“When [Rubin] acquired Topps, he publicly stated that he thought we were in the second or third inning and there was a lot more to go,” Leiner said. “I think he’s put his money where his mouth is and we’re achieving that growth.”
Fanatics raised $700 million in December 2022 to bring its valuation to $31 billion, capital that it planned to use on potential merger and acquisition opportunities across its collectibles, betting and gaming businesses, according to CNBC. Fanatics is a three-time CNBC Disruptor 50 company, and ranked No. 21 in 2022.
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