The contentious litigation between Fanatics and Panini America continues to grind through the courts.
According to court documents, Chief U.S. District Judge Laura Taylor Swain, ruling in the Southern District of New York, said the cases between Fanatics and Panini should proceed to the discovery phase. Swain partially granted and denied several parts in both lawsuits. She stated in her report that both complaints had merit but dismissed other motions, telling both parties that they had 21 days to refile with more evidence.
The dueling cases are Panini America, Inc. v. Fanatics, Inc., et al. and Fanatics Collectibles Topco, Inc. v. Panini S.P.A.
Fanatics noted in its lawsuit that Panini does not have legal standing regarding its antitrust claims. However, Swain said in her report that Panini “adequately pleaded facts” that supported its claim that Fanatics enjoys “monopoly power” because it can set prices and freeze out competitors. The judge’s ruling allows Panini to pursue antitrust liability. That includes a possible court order “against the implementation of the exclusive long-term arrangements” to produce and market trading cards.
Panini’s complaint noted that Fanatics had “created an entirely new monopoly spanning multiple leagues and multiple players associations” in the trading card industry.
Swain dismissed Panini’s claim that the company was damaged in such a way that the courts would have to step in.
Swain wrote that “as one of the two remaining competitors in the field, Panini benefited from the alleged market concentration as a prevailing duopolist with ‘the opportunity and incentive’ to increase prices.”
Swain also allowed arguments over Fanatics’ claim of tortious interference. Fanatics alleged that Panini undermined prospective business relationships involving employees and staffing. The complaint stated that Panini allegedly told employees they could face legal consequences if they were to leave and work for Fanatics.
According to her report, Swain wrote that “Panini wrongfully threatened its employees with meritless litigation if they left to join Fanatics.”
Panini holds the NBA Players Association license for trading cards until September 2025 and the NFL and NFLPA license through 2026. Fanatics will then take over those licenses. Fanatics, in its attempt to hold the majority of licensing deals for trading cards, secured a 20-year deal with Major League Baseball and the players’ union.
In January 2024, Fanatics announced that it had signed an exclusive multiyear deal with UFC. Topps had held the license for the mixed martial arts organization from 2009 through 2020 before Panini took over the license for three years.
While the UFC is not part of the current lawsuit, it was another instance where Fanatics had grabbed the licensing rights to a major sports organization.
Swain said in her report on Monday that “There was a conspiracy between the NFLPA, the MLBPA and Fanatics to license both the players associations’ intellectual property on an exclusive basis.”
The lawsuit by Panini was originally filed in August 2023. At the time, Panini stated that Fanatics was engaging in “anticompetitive conduct,” alleging that Fanatics had interfered with its existing contracts for trading card production — along with other moves that violated Panini’s ability to conduct business.
In July 2024, the NFLPA lost $7 million to Panini in an arbitration case over the termination of the exclusive contract between the players’ union and the trading card company.
On Monday, representatives for Panini and Fanatics were pleased by portions of Swain’s rulings.
“We are gratified by the federal district court’s decision which upheld Panini’s principal antitrust claims and state law claims against Fanatics,” said Stuart Singer, whose company, Boies Schiller Flexner, is representing Panini. “Preserving meaningful competition in the global sports trading card business is critically important for fans, players and collectors.”
“We are pleased that the court has already rejected a number of Panini’s claims and is allowing Fanatics’ case against Panini to move forward,” a Fanatics spokesman told Sports Collectors Daily in an emailed statement. “Unlike Panini’s baseless allegations, we look forward to presenting actual evidence about how, in just a few short years, we have materially grown the hobby through investments, innovation, better products and marketing and a relentless focus around enhancing the overall collector experience.
“The facts will show that Panini has lost touch with its consumers and continues to be unwilling and unable to keep pace with what collectors and the hobby want. Panini is just using this lawsuit as a tool to deflect from its own failings in a desperate attempt to slow down Fanatics.”
Ed Schauder, an attorney at Nason Yeager Gerson Harris and Fumero who has done trading card deals for the estates of Hall of Famers Yogi Berra and Josh Gibson, told Sports Collectors Daily late Monday that while Panini may be awarded some money, they most likely will not succeed in reversing Fanatics’ string of licensing deals.
That is, Panini’s quest for injunctive relief — when monetary damages are not sufficient — will not be granted.
“Panini won a round,” Schauder said by telephone from Palm Beach Gardens, Florida, where he is vacationing. “I can see (Fanatics) paying money damages but (the courts) are not going to unwind this.
“I still think that Fanatics will merge with Panini. I really do.”
