First Fanatics supplanted Topps, the biggest name in trading cards. Now it’s buying Topps, sources confirmed to Front Office Sports.

The deal is for around $500 million, according to the Wall Street Journal. Topps posted $550 million in 2021 revenue, with an EBITDA of $160 million.

Topps held the rights to produce Major League Baseball trading cards for 70 years, but Fanatics won the contract from Topps last August. Fanatics was to take over MLB card production in 2026, after Topps’ deal expired the previous year, but will be able to begin doing so immediately on completion of the deal.

The deal is for Topps’ physical and digital trading card business, but does not include its candy or gift card segments.

• In addition to its agreements with MLB and the MLBPA, Fanatics has recently scored trading card deals with the NBA, NBPA, and the NFLPA. Each organization will hold equity stakes in the new organization. 
• Topps still holds rights deals with Bundesliga, MLS, Formula 1, and UEFA.
• Fanatics Trading Cards raised $350 million in October at a $10.4 billion valuation. Its NFT platform, Candy Digital, was valued at $1.5 billion after a $100 million Series A round that same month. 

More to Come?

Fanatics has not been shy about its ambitions. It has explored acquiring a sportsbook and is reportedly interested in buying into the regional sports network business.

Next week’s College Football Playoff National Championship game between the Alabama Crimson Tide and the Georgia Bulldogs is set. Host city Indianapolis is primed to cash in.

The matchup, which will be held at Lucas Oil Stadium on Jan. 10, could drive a regional economic impact of more than $150 million, the Indy Host Committee estimated.

• The city anticipated that more than 100,000 fans would travel for the game and associated events.
• Within 24 hours of the semifinals on New Years Eve, “dozens” of hotels in downtown Indianapolis sold out.

It’s the second major NCAA event the city has hosted in the last 12 months — the entire Division I men’s basketball tournament was held in a semi-bubble environment last March and early April. 

One expert previously estimated that the 2021 men’s March Madness would also bring in more than $100 million.

Pandemic Uncertainty

The highly contagious Omicron variant poses a major concern — it already caused several bowl game cancellations. 

But the CFP has a contingency plan in case the variant affects Georgia or Alabama: The championship could be postponed up to Jan. 14.

The virus may only have a minimal impact on fan attendance, if initial hotel numbers are any indication, but there may be fewer media members as the CFP will only allow virtual availability.

Nike is going digital in more ways than one, and market analysts are taking notice.

Robert Drbul of Guggenheim Partners called Nike his “best idea” for 2022 in a Dec. 31 note, saying the shoe and apparel maker “is rapidly embarking on the next era of its company history.” 

The Swoosh has reshaped itself around a trend that has grown quickly in recent years, direct-to-consumer sales, and one that has just begun capturing the public’s imagination, the metaverse.

• Nike has cut off relationships with numerous retailers while amplifying its own DTC sales, which grew 12% year-over-year in the company’s fiscal second quarter of 2022. 
• Last month, Nike acquired RTFKT, which produces NFTs, sometimes paired with a physical collectible such as sneakers. It also established virtual real estate within Roblox with Nikeland, an environment in which users can play games and browse products.
• The company is evaluating $1 billion in media spending in a review expected to last into the spring. 

Strong Fundamentals

“The brand commands dominant market share, which we expect will grow materially from here as digital scales further, new product innovation remains robust, and heavy investment behind key growth drivers continues,” Drbul wrote.

Nike banked $11.4 billion in fiscal Q2 revenue, with the flagship brand accounting for 94.7% of that sum.

Three months after purchasing an 80% stake in the Premier League’s Newcastle United for $409 million, Saudi Arabia’s Public Investment Fund is reportedly nearing a purchase of Serie A’s Inter Milan for $1 billion.

The deal is expected to be announced in the coming days. Rumors of the club’s sale to the PIF have swirled since March 2021.

Suning Holdings Group acquired a 70% stake in the team in 2016, but the owners have searched for an additional investor since 2019.

• Despite winning the domestic title in 2020, the club lost roughly $285 million in the 2020-21 financial year.
• The team continues to lose $15 million each month.

PIF’s Soccer Deals

Saudi Arabia’s Public Investment Fund manages over $430 billion in assets.

The PIF’s purchase of Newcastle United faced criticism from other Premier League teams over concerns about the Saudi government’s involvement — the PIF is run by Saudi Crown Prince Mohammed bin Salman.

The Premier League ruled that the PIF is separate from the government. Teams voted last week that any sponsorship deal worth more than $1.3 million will now have to be submitted for review.

The PIF is also reportedly in talks with Ligue 1’s Marseille and a Brazilian club and was named the Saudi International’s new title sponsor on Monday.