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Julio Rodriguez of the Seattle Mariners has been named the 2022 American League Rookie of the Year. Fanatics, MLB’s trading card partner, is planning new Rookie Card features this season as part of a larger plan to increase the value of the top baseball cards for collectors.
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Fanatics made waves in the sports and collectibles industry in August 2021 when they stripped the incumbent Topps of their rights to make Major League Baseball trading cards, ending a partnership that dates back to 1952. We fully acquired Topps for about $500 million.
Now, after releasing its first major set of tops with the start of the 2023 MLB season, Fanatics is starting to show how it will boost its trading card and collectibles space.
Fanatics Collectibles CEO Mike Mahan said: “It means having the most innovative, thoughtful and authentic products possible.”
Mahan, who joined Fanatics in June to lead the company’s trading card and digital collectibles business after serving as CEO of Dick Clark Productions, said, “The 2023 collector’s experience will be the best collector’s experience ever. It’s been an experience and 2024 will be even better.”
Mahan says that belief stems from Fanatics Collectibles’ key focus areas to date. educating and familiarizing new collectors with the hobby; building marketing around collectibles; enhancing the ecosystem and experience of existing collectors; and innovation.
Rookies play a big role in increasing the value of baseball cards
Innovation has driven one of the new initiatives Fanatics added this year. Typically the highly touted debut card of the rookie, his one of the greatest points of excitement and value for card collectors.
“One of the key questions we’ve been trying to answer is how can we capture the moments that really matter with cards,” says Mahan. “Baseball cards have long been about rookies. If rookie cards are the biggest in sports, how do you make the best cards? How do you bring people closer to the moment? Huh?」
That led to the creation of the MLB debut patch. This is the first memorabilia that Fanatics has created in partnership with a professional sports league, specifically promoting the inclusion of trading cards. We are working with MLB and the MLB Players Association to patch the jerseys of all debuting players this season. After the match, the patch will be certified and placed directly on the Rookie card of the future top set.
Noah Garden, MLB’s chief revenue officer, said it’s this sort of thing that keeps the momentum going for collectibles and trading cards.
“It’s that emotional connection that drives the hobby and brings fans closer to the game,” said Garden, who describes himself as an avid baseball card collector. “They want to feel like they’re part of the game. What better way to do that than have something that was actually part of the game?”
The sports trading card industry has seen growth in recent years, but the pandemic has put the hobby into a fever pitch. Cards across the sport have sold at record prices, including his $12.6 million sale of his Topps Mickey Mantle rookie card in 1952, the highest amount ever paid for a trading card.
US Google searches for “best sports cards to buy now” increased 680% between January 2020 and February 2023, according to data provided to CNBC by online visibility management SaaS platform Semrush Did. Over the same period, the average number of US monthly visits to Topps.com reached nearly 1.2 million, he increased by 218.5%, according to Semrush data.
But even as other collectibles that boomed during the pandemic fell out of favor like NFT and Funko Pops, trading cards appear to be maintaining their momentum.
Jeff Owens, editor of Sports Collector’s Digest, the largest trade publication covering sports trading cards, said the hobby’s resurgence was “mainly due to a resurgence in trading during the pandemic and wealthy investors looking for alternative assets. It is due to a large group of
The softening economy last year has reduced the market for modern cards, but value and demand are still “much higher” than pre-pandemic, Owens said, adding that the market for vintage cards like the Mantle Rookie Card “is buoyant.” very, very strong
Owens also noted the growth and support of card shows across the country. About 1,000 are planned for 2023, a significant increase from the previous year.
“This is a very strong time for the hobby,” said Mahan, from a fanatic’s point of view.
According to Verified Market Research data, the global sports trading card market is valued at $44 billion and is expected to approach $100 billion by 2027.
“We firmly believe that the best times are ahead of us. We cannot control the broader economy. As with consumer goods, there is some correlation with broader spending, but currently When you go to card shows and shops, it’s very vibrant and a healthy market,” Mahan said.
As Topps was considering going public in a SPAC deal valued at $1.3 billion in April 2021, the company reported 2020 revenue of $567 million, up 23% year-over-year Did. That his SPAC contract was canceled after Fanatics acquired the rights to MLB, ultimately leading to the company’s acquisition by Fanatics.
Mahan declined to comment on Topps’ sales today, but said “the business and industry continue to be in a great, great place.”
What MLB got with the Tops deal
For MLB, the return of trading cards has also acted as a boon, similar to video games and other ways leagues are trying to attract new fans and turn casual fans into enthusiasts. said Garden.
Garden focused on fans like his son, who was an avid baseball fan but might not know every player on the West Coast team other than the star. Based on the rookie card and other cards in the set, “we already know who to look for when these players start breaking through nationally,” he said.
“The importance of cards in the evolution of fandom has always been important to me,” Garden said, noting that that’s how he got started in baseball. I haven’t seen it, and in many ways it’s getting harder to collect.…What Fanatics has done so far to innovate their product and support their ecosystem is nothing short of amazing.”
While MLB cards continue to be Topps’ crown jewels, Fanatics will not be limited to just baseball cards, but what other rights the company holds in the future, including the ability to make NBA and NFL cards in the future. Mahan said he is excited. Year.
“The good news is that trading and sports cards have been vibrant for a long time, important for a long time, and relevant for a long time,” said Mahan. “This is a business that has traditionally been cyclical and has had its ups and downs….We are focused on education, innovation, marketing and community, and we are working to bring it all together. It’s still early days, but I definitely feel that doing my best is in front of me.”
Earlier this year, Fanatics snap Nick Bell, Global Head of Content and Partnerships, will lead the new Fanatics Live business. The business will focus on building a digital shopping experience for his customers who can purchase trading cards and other collectibles through curated, personality-driven content and entertainment.
Bell told CNBC that one of the initial focuses of the new business unit will be around “breaking,” a form of social trading card buying. Blind Similar to his raffle, a set number of individuals purchase entries from sellers (called “spots”), who publish entire cases of trading cards online and assign each one. Fanatics receive a portion of each card sale.
Fanatics raised $700 million in December, raising its valuation to $31 billion, according to CNBC. This is the capital it planned to use for potential merger and acquisition opportunities across its collectibles, wagering and gaming businesses.
The company expects Fanatics revenue, including the Lids segment, to be around $8 billion in 2023.
Fanatics has been named to the CNBC Disruptor 50 three times and is ranked #21 in 2022.