Trading card company Panini has made explosive new allegations in its three-year-old antitrust litigation against rival Fanatics.
In a Thursday court filing, Panini accused Fanatics of illicitly obtaining confidential Panini information—including license details—that the sports business power then allegedly used to win exclusive trading card rights to the NBA, the NBPA, the NFLPA and the NFL.
In June, Fanatics moved to seal the two new allegations, but a magistrate judge earlier this week ordered the secrecy restriction lifted. Panini amended its complaint after receiving court approval to add these new allegations, which were revealed for the first time Thursday.
“Fanatics acquired its long-term exclusives through the use of Panini’s confidential information,” Panini contends. “Fanatics gained access to Panini’s commercially sensitive, confidential licensing information in direct violation of the confidentiality provisions contained in those licenses or in violation of confidentiality Panini was entitled to expect regarding this information.
“Fanatics obtained granular details of Panini’s existing deals, including the precise royalty rate, minimum guarantee schedule, marketing commitments, and autograph spend obligations under Panini’s licenses. Fanatics used that information in connection with procuring exclusive licenses.”
The allegation does not detail how Fanatics allegedly secured this information.
A second allegation takes aim at the National Basketball Players Association, and OneTeam Partners—the marketing and licensing venture of several sports unions. Panini alleges that OneTeam was involved in the negotiation of Fanatics’ license with NBA players.
This reels the basketball union into the alleged conspiracy Panini has argued exists between OneTeam and Fanatics to monopolize the trading card market. The NBPA is not part of OneTeam, so this allegation would put that union inside the alleged conspiracy between OneTeam and Fanatics.
A spokesman for Fanatics Collectibles blasted the new Panini allegations in a statement to Front Office Sports.
“After three years of litigation and hundreds of thousands of pages of discovery, Panini has been unable to find facts to support its baseless allegations – and its proposed amended complaint makes that painfully clear,” the statement said. “Rather than advancing any legitimate claim, Panini is just trying to delay the case by attacking its former licensing partners because they chose a better, more innovative model with Fanatics.”
OneTeam also denies its involvement.
“OneTeam is not a defendant in the Panini litigation,” a spokesperson told FOS. “And while OneTeam’s goal is to serve athletes and players associations in negotiating partnerships, it was never a party to the NBPA-Fanatics agreement. Panini’s allegations are wrong.”
Panini sued Fanatics in 2023 for allegedly monopolizing the trading card business, as well as tortious interference in Panini’s business. Currently Fanatics holds card licenses of between 10 and 20 years for MLB, NBA, NFL and the three unions of those sports, many of which were licenses that had been held by Panini.
The lawsuit is deep into the discovery phase. It would likely have been documents Panini obtained during this process that led the company to make the bold claim that Fanatics had illicitly obtained its rival’s most prized trade secrets. If so, those documents are under seal, though either side could petition for them to be unsealed.
“Our antitrust and unfair competition case against Fanatics is in discovery,” Stuart Singer, a lawyer representing Panini, told FOS. “We look forward to the day when our substantial claims can be placed before a jury.”
On the current path, the case is likely to go to trial some time next year. Panini must get past Fanatics’ likely summary judgment motion that will ask the judge to toss the case. And there is always the chance the two sides settle.
