Topps Signs Deal As Exclusive MLB Trading Card Manufacturer

Topps has signed a multi-year deal with MLB to become the exclusive trading card manufacturer. The deal goes into effect January 1. Topps will become the first exclusive baseball card company for the sport since '81 (Topps). In N.Y., Richard Sandomir reports the deal “appears to seriously hurt Upper Deck,” which released its first MLB line in '89. MLB hopes that Topps can “invigorate card collecting, especially with young fans.” The league also “believes that one cardmaker can end the confusion of competitors selling multiple card series.” MLB Exec VP/Business Tim Brosnan: “There is a greater chance of organizing the marketplace with a singular partner.” Tornante Co. Founder Michael Eisner, whose company owns Topps, said, “This is redirecting the entire category toward kids. Topps has been making cards for 60 years, the last 30 in a nonexclusive world that has caused confusion to the kid who walks into a Wal-Mart or a hobby store. It’s also been difficult to promote cards as unique and original. ... We’re going to be very aggressive in letting retailers, kids and hobbyists know that we are the card that represents it all.” Meanwhile, an Upper Deck spokesperson said that the company “renewed its trading card license with the [MLBPA] last month and would keep producing cards.” While the union license “gives Upper Deck the right to use player likenesses, it will no longer have the rights to team logos and trademarks” (N.Y. TIMES, 8/6).

THAT'S NICE IN THEORY, BUT.... CNBC's Darren Rovell writes, "One would think that the card business would be driven by children because it once was. But that was when packs were cheap and companies didn't pay millions to baseball or the union in guarantees and royalties." It is currently "impossible" for the industry to be "driven by children because the high margin cards -- where a company like Topps can really make its money back -- are only going to be bought regularly by adults for themselves." Rovell said of Topps and MLB, "I hope they really know that true recovery in the card business won't come from little Johnny. It will come when Johnny's father wants to crack open packs for himself again" (CNBC.com, 8/6).