How Fanatics’ Licensing Deals Are Changing the Sports Card Industry

The Fanatics Takeover

The sports card industry has undergone a seismic shift in recent years, with Fanatics at the center of this transformation. Once primarily known for its dominance in sports apparel and merchandise, Fanatics has now become the single most influential force in sports card manufacturing and distribution. With exclusive licensing deals with Major League Baseball (MLB), the National Basketball Association (NBA), and the National Football League (NFL), Fanatics has redefined how collectors, investors, and retailers interact with the hobby.

So, what exactly does this mean for collectors and the industry at large? Let’s explore how Fanatics’ licensing deals are reshaping the landscape of sports cards.

The End of Panini and Topps (Sort of)

For decades, Topps and Panini were the dominant players in the sports card industry, each holding licensing rights to major leagues and producing some of the most iconic cards in history. However, in 2021, Fanatics made a power move by securing exclusive rights to MLB, NFL, and NBA cards, effectively cutting Panini out of the picture and acquiring Topps in 2022. This marked the end of an era and the beginning of a new, centralized sports card empire.

Panini, once the go-to for NBA and NFL cards, lost its licensing, leading collectors to speculate on the long-term value of their unlicensed products. Meanwhile, Topps, now under Fanatics’ umbrella, retained its MLB branding but operates under a larger corporate structure with different objectives than the independent manufacturers of the past.

Direct-to-Consumer Model: Eliminating the Middleman

One of the most significant changes Fanatics has introduced is its direct-to-consumer (DTC) sales model. Traditionally, collectors would purchase sports cards through local hobby shops, retail chains, or online marketplaces like eBay. Now, Fanatics is leveraging its e-commerce expertise to sell products directly to consumers, often through its website and exclusive online drops.

While this model increases accessibility for some collectors, it has also alienated hobby shop owners and traditional distributors who thrived under the previous system. The shift toward DTC means fewer middlemen, higher profit margins for Fanatics, and potentially higher prices for consumers due to reduced competition.

Exclusive Products and Limited Print Runs

Fanatics has changed the way cards are produced and distributed by emphasizing exclusivity. Instead of mass-producing cards, they are focusing on limited print runs, serialized inserts, and exclusive online sales, creating a new level of scarcity that drives demand.

While this benefits high-end collectors and investors, casual collectors may struggle to access products at reasonable prices. Hobby boxes, once a staple of local card shops, are now increasingly sold through exclusive online releases, making them harder to obtain without insider knowledge or automated purchasing bots.

Fanatics’ Approach to Player Autographs and Memorabilia

One of Fanatics’ biggest advantages is its direct relationships with athletes. Unlike previous card manufacturers, which relied on third-party deals to secure player autographs and memorabilia, Fanatics has built-in access to athletes through its existing sports merchandise business. This means more on-card autographs, game-worn memorabilia, and exclusive athlete partnerships that add value to their products.

However, this exclusivity also means that players signed to exclusive Fanatics deals may no longer appear in competing brands’ products. This raises concerns over accessibility and diversity in the hobby, as the lack of competition could stifle innovation and increase prices.

The Future of Card Grading and Authentication

With Fanatics controlling the majority of the industry, speculation has grown about whether they will enter the grading and authentication market. Companies like PSA, BGS, and CGC currently dominate the grading space, but Fanatics has the infrastructure and financial resources to create its own grading service. If they do, it could disrupt the existing grading ecosystem and potentially lead to new industry standards.

Additionally, Fanatics has hinted at integrating blockchain technology to authenticate physical cards, ensuring provenance and legitimacy while also creating digital counterparts that exist on the blockchain. This could revolutionize how collectors track ownership and trade cards in the future.

Will Fanatics’ Monopoly Help or Hurt the Hobby?

The big question remains: Is Fanatics’ control of the industry a good thing? There are both pros and cons to this massive consolidation.

Pros:

  • Increased Innovation – Fanatics has the resources to introduce new products, digital integrations, and exclusive deals that smaller companies could not.
  • More Direct Access for Consumers – Collectors no longer have to rely on third-party sellers or inflated secondary market prices.
  • Higher-Quality Products – With direct access to athletes and game-used memorabilia, Fanatics can create more desirable products.

Cons:

  • Reduced Competition – Without Panini or Topps operating as independent competitors, there’s less incentive for Fanatics to innovate or keep prices reasonable.
  • Limited Product Availability – Hobby shops and traditional distributors have been cut out of the process, making it more challenging for collectors to buy sealed wax.
  • Risk of Overproduction – While Fanatics has emphasized exclusivity, there’s always a risk of overproduction if they prioritize short-term profits over long-term sustainability.

A New Era for Sports Cards

Fanatics’ takeover of the sports card industry has fundamentally changed how the hobby operates. Whether you see this as positive or negative depends on your role in the ecosystem—casual collectors may struggle with accessibility, while high-end investors benefit from exclusivity and direct athlete partnerships.

As we move forward, one thing is clear: The sports card industry will never be the same. Fanatics has transformed what was once a fragmented market into a centralized powerhouse, and their next moves will dictate the future of collecting for years to come. Whether they elevate or stifle the hobby remains to be seen, but one thing is certain—sports cards are no longer just a pastime; they are big business.

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