Fanatics filed a countersuit against Panini America within the Southern District of Latest York on Monday after the latter accused the sports retail and collectibles giant of getting a monopoly within the trading card industry.
Panini America alleged last week in a lawsuit filed in Florida that Fanatics participated in “anticompetitive” behavior and signed long-term licensing deals with the NFL, MLB and NBA, in addition to each of the main sports leagues’ players’ unions.
Fanatics acquired Topps Company in 2022.
Panini has an exclusive license with the NBA through September 2025 and the NFL through early 2026.
Panini accused Fanatics of “raiding” its employees and giving “false, derogatory statements” concerning the company.
On Monday, Fanatics fired back.
The corporate said in its lawsuit that Panini’s owners “launched into a protracted, illegal, and deceitful campaign of unfair trade practices, strong-arm tactics, and tortious misconduct to hamper Fanatics Collectibles’ nascent business, within the hopes that it could force Fanatics Collectibles to pay an extortionate amount for Panini to terminate its licenses early, although early termination would inure to the good thing about collectors and licensing partners—and Panini—alike.”
Fanatics accused Panini of attempting to falsify earnings projections hoping to “bait” the corporate into “continuing sham talks of terminating Panini’s licenses, impeding Fanatics Collectibles’ business plans to work with players’ associations and individual athletes to grow the sports and entertainment collectible cards category.”
Fanatics accused Panini of using unfair tactics, which forced them to spend thousands and thousands of dollars and lose out on several other opportunities. SOPA Images/LightRocket via Getty Images
Of those that left Panini without non-compete clauses, Fanatics said Panini filed lawsuits against them and “threatened” others who decided to follow.
The lawsuit mentioned a 2022 negotiating period when Fanatics and Panini agreed in principle to terminate a few of Panini’s licenses early. Fanatics agreed to pay the early termination fee based on Panini’s revenue projections.
“Over the course of the subsequent 12 months, nonetheless, Panini dragged out the early termination negotiations in bad faith by slow-walking negotiations for several months and ultimately attempting to pass off knowingly inflated earnings projections that translated to an unreasonably high early termination fee,” the lawsuit said.
Fanatics accused Panini of attempting to falsify earnings projections.MLB Photos via Getty Images
Panini has an exclusive license with the NBA through September 2025 and the NFL through early 2026.dpa/picture alliance via Getty Images
Fanatics accused Panini of using unfair tactics, which forced them to spend thousands and thousands of dollars and lose out on several other opportunities.
A source accustomed to the matter told Fox Business that Panini threatened the corporate with the antitrust lawsuit for months with a view to force them to make a nasty deal. The source said the lawsuit got here after Fanatics wouldn’t do the deal.
“Panini’s strategy is an admission of its ineptitude: slightly than elevating the collector experience, granting licensors access to downstream opportunities, or improving the broader industry, Panini is attempting to undermine its competitor through unfair tactics in order that it might proceed to treat its American subsidiary as an ATM serving its private owners in Italy. But Fanatics Collectibles won’t be bullied,” the lawsuit said.
“Fanatics Collectibles has nothing to fear from the baseless litigation that Panini has brought, as Fanatics Collectibles has done nothing aside from outcompete Panini by convincing athletes, players’ associations, and leagues that Fanatics Collectibles will maximize the worth of their mental property in the long run. That is known as competition—and it’s what the antitrust laws promote.”
Panini America accused Fanatics of “raiding” its employees and giving “false, derogatory statements” concerning the company.AFP via Getty Images/MARCO BERTORELLO
Fanatics also cited tweets from Panini consumers who’ve been upset with the product.
Panini America didn’t immediately reply to Fox Business’ request for comment.
Their lawyers released an announcement to the Motion Network.
“Fanatics 101 page press release masquerading as a lawsuit is a disparate (sic) try and avoid coping with its serious antitrust liability as set out in litigation filed against it last week,” Panini America said through its lawyers to the Motion Network.
“Fanatics try and some how portray it as a victim is absurd on the facts and irrelevant as a matter of law.
“Fanatics attacks on Panini are flatly inconsistent with undisputed facts, including Panini’s undisputed record of innovation, customer support, and financial success. If Panini had been as unsuccessful as Fanatics pretends, Fanatics wouldn’t have had to make use of a long time long exclusive dealing arrangements to lock it out of the market, or improperly cut off Panini’s supply, interfere with Panini’s production facilities, and raid its employees.”
Fanatics said it’s “searching for damages and “other appropriate relief on this forum, pursuant to a governing forum-selection clause, with a view to treatment Panini’s unfair competition, tortious interference with business relations, and breach of the duty to barter in good faith.”