Over the years, Fanatics has developed into a one-stop-shop for sports fans with a product line offering team jerseys, memorabilia and even sports betting. The company, which has an office in San Mateo, is set to grow its presence in the industry with its recent acquisition of trading card company — Topps.
Financial terms of the acquisition were not shared by either company, however, CNBC reported that the deal is worth $500 million.
Founded in 2002, Fanatics licenses sports merchandise and sells it directly to consumers on its website. Currently, Fanatics is the official merchandise manufacturer of the NHL, NBA, MLB, MLS and NCAA; it also has partnerships with several overseas soccer teams.
In recent years Fanatics has also been building out a digital sports platform, first starting with betting and gaming but also extending into NFTs with its Digital Candy subsidiary.
“With trading cards and collectibles being a significant pillar of our long-term plans to become the leading digital sports platform, we are excited to add a leading trading cards company to build out our business,” Fanatics CEO Michael Rubin said in a statement. “Their iconic brand, commitment to product excellence and passionate employees worldwide will allow us to immediately serve our league and players’ association partners and our fans.”
New York-based Topps was founded in 1938 and at the time manufactured chewing gum. It wasn’t until 1949 that the company started making trading cards. The first card featured baseball legends such as Babe Ruth and, over the years, older cards have become prized memorabilia — with some fetching millions of dollars in auctions.
Michael Eisner, owner of Tornante Company — the parent company of Topps — said he was proud of Topps success and that Michael Rubin is the “perfect entrepreneur to lead this company [Topps] forwarded.”
Prior to acquiring Topps, Fanatics had started making an entry point into the card trading niche in 2021 after it launched a trading card subsidiary and secured rights to several U.S.-based sports leagues. One of the leagues it secured was the MLB. Topps has been the official trading card producer for the MLB since 2009.
Once the acquisition is finalized, Fanatics will be able to start producing MLB trading cards. The company is also planning to produce trading cards for UEFA Champions League and the Bundesliga, two European-based soccer leagues.
As part of the deal, Topps 350 employee base will be absorbed by Fanatics Trading Cards.
News of this acquisition comes after a busy year for Fanatics. The company raised over $600 million in funding in 2021, including $320 million in March and another $325 million in August. Following the August funding round, Fanatics was valued at $18 billion.
