For 70 years, the name Topps has become synonymous with baseball cards. That longevity was threatened Thursday, as The Action Network confirmed that Major League Baseball and the Major League Baseball Players Association have given their exclusive licenses to Fanatics. The union deal doesn’t start before 2023, and the MLB deal won’t start until 2026.
Terms of the deal are unclear, but sources say that both MLB and MLBPA will have an equity stake in the new company formed from scratch just to produce trading cards.
A Fanatics spokesperson declined to confirm the news. Calls made to Mudrick Capital were unanswered.
The deal presents a major issue for Mudrick Capital, which is taking Topps public in a deal valued at $1.3 billion. While Topps will have five seasons left on its MLB deal, losing the license in the future automatically makes it a shell of its former self.
This deal might completely undo the business combination between Mudrick and Topps. Shareholders are expected to vote on the deal next Wednesday morning.
Sources said that Major League Baseball offered Topps the right to match the deal proposed by Fanatics and was unable to reach the number — not a surprising result given the fact that Fanatics is worth nearly 14 times what Topps is worth.
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08-19-2021, 03:28 PM
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