The legal war between trading card giants Fanatics and Panini America is far from over, with a federal judge ruling that both companies’ lawsuits can move forward.
In a decision handed down on Monday, Chief U.S. District Judge Laura Taylor Swain, presiding in the Southern District of New York, allowed the high-stakes dispute to proceed to the discovery phase. While some claims from both parties were upheld, others were dismissed, with the judge giving each side 21 days to strengthen their arguments with additional evidence.
The competing lawsuits—Panini America, Inc. v. Fanatics, Inc. and Fanatics Collectibles Topco, Inc. v. Panini S.P.A.—are centered around allegations of antitrust violations, monopolistic control, and business interference.
Monopoly Claims at the Forefront
Panini has accused Fanatics of creating a monopolistic stranglehold over the trading card industry, citing exclusive licensing agreements that span multiple professional sports leagues and players’ associations. The lawsuit asserts that Fanatics’ actions have effectively shut out competition and positioned the company as the dominant force in the market.
While Fanatics sought to have Panini’s claims dismissed, Judge Swain ruled that Panini had presented sufficient evidence to pursue antitrust allegations. According to the court, Fanatics holds considerable influence over pricing and market access, supporting the notion that it wields monopoly power.
However, not all of Panini’s claims held up. The judge dismissed arguments suggesting that Panini suffered damages severe enough to warrant judicial intervention, stating that as one of the last major players in the space, Panini itself had benefited from the market’s concentration.
Fanatics Fires Back
Fanatics, in turn, has accused Panini of engaging in tortious interference—essentially, blocking the company’s ability to recruit talent by threatening Panini employees with legal consequences if they left to work for Fanatics. The court found merit in this claim, allowing Fanatics to proceed with its case against Panini on this front.
The ruling comes as Fanatics continues its aggressive expansion into the trading card market, securing long-term licensing deals with major sports organizations. While Panini currently holds exclusive rights to produce NBA trading cards until September 2025 and NFL cards through 2026, Fanatics has already positioned itself to take over those licenses once they expire.
Licensing Battles Extend Beyond This Case
Fanatics’ strategy has extended beyond basketball and football. In January 2024, the company inked an exclusive multiyear deal with the UFC, further consolidating its hold on the trading card industry. Panini, which had previously held the UFC’s license, saw yet another major deal slip through its grasp.
Judge Swain’s ruling also acknowledged a potential “conspiracy” between Fanatics and the NFL and MLB players’ associations to structure licensing agreements in an exclusive manner, a key issue in Panini’s lawsuit.
The Road Ahead
Panini first launched its lawsuit against Fanatics in August 2023, accusing the company of engaging in “anticompetitive conduct” and interfering with existing contracts. Meanwhile, in July 2024, an arbitration case resulted in the NFL Players Association being ordered to pay Panini $7 million for prematurely terminating an exclusive contract.
Despite their legal battle, both companies expressed measured optimism following the judge’s ruling.
Panini’s legal representative, Stuart Singer, praised the court’s decision to allow antitrust claims to move forward, stating that protecting competition in the global trading card industry is essential for collectors, players, and fans.
Fanatics, on the other hand, dismissed Panini’s lawsuit as a distraction, claiming that its competitor is simply trying to shift blame for its own shortcomings. A Fanatics spokesperson emphasized the company’s role in “growing the hobby” through innovation, marketing, and consumer-focused improvements.
Will This End in a Merger?
Legal experts remain skeptical that Panini will be able to overturn Fanatics’ licensing deals. Attorney Ed Schauder, who has worked on trading card deals for the estates of sports legends, believes that while Panini may win financial compensation, the courts are unlikely to undo Fanatics’ agreements.
“Panini won a round, but I don’t see this changing the outcome,” Schauder said. He even speculated that the battle could ultimately lead to a Fanatics-Panini merger—a scenario that would reshape the entire trading card landscape.
For now, the courtroom showdown between these two industry powerhouses is set to continue, with the next moves likely to define the future of the trading card market.
