Antitrust Coming to a Card Shop Near You?

[BrookIsland]

Several years ago, as some of you may recall, we had a discussion about whether Fanatics various acquisitions in the card space amounted to sufficient market power that an antitrust lawsuit might be successful.

Well, more cases have been filed this summer and yesterday - this obviously could have major impacts on the general sports memorabilia marketplace but also more generally in cards. This is not being brought by the DOJ - which is the usual arbiter of antitrust issues - which under this administration has been far less aggressive on antitrust.

A couple paywall articles:

TikTok, Fanatics Hit With Sports Memorabilia Monopoly Suit (1)

TikTok Inc., along with the NFL and Fanatics Inc., were sued in federal court by a retailer that claims the three entities conspired to monopolize the sports memorabilia market and exclude small businesses from selling on the social media platform.

news.bloomberglaw.com

Fanatics, MLB urge US judge to stay discovery in antitrust suit over trading cards | MLex | Specialist news and analysis on legal risk and regulation

Fanatics Holdings, Major League Baseball and other defendants accused of monopolizing the market for major US professional sports league trading cards told a US federal judge that discovery should be stayed in a suit brought by a proposed class because the members have no standing and are...

www.mlex.com

Will see what happens...

 

[odjickfan]

I wish we could go back to the days of 3 or 4 companies making licenced hockey cards.

 

[quincy]

I wish we could go back to the days of 3 or 4 companies making licenced hockey cards.

Yes and no. I'd like the competition. And I'd like for there to be accountability.

 

[frankiefives]

I wish we could go back to the days of 3 or 4 companies making licenced hockey cards.

I miss the early 2000's. Upper Deck, Pacific, Topps, ITG were all making hockey products and it was the best time in the hobby IMO.

 

[mq13]

I miss the early 2000's. Upper Deck, Pacific, Topps, ITG were all making hockey products and it was the best time in the hobby IMO.

Agreeded

 

[Tachyon]

I miss the early 2000's. Upper Deck, Pacific, Topps, ITG were all making hockey products and it was the best time in the hobby IMO.

Agreed.

I loved Pacific cards in the early 2000's. I collected several sets and still purchase the odd SP inserts of various sets. The first Datsyuk Rookie Card I pulled was from Topps Stadium Club. Also, at the time pulling the Ilya Kovalchuk Rookie Auto that everyone wanted from Stadium Club. One of the first Memorabilia cards, dual of Sakic/Forsberg in 2001. Pacific Brodeur card with a piece of the actual net! ITG Parkhurst Retro. ITG with their memorabilia and great cards in general.

Really couldn't enjoy a 5 year stretch of collecting any more than 2000-2005.

 

[BrookIsland]

Unfortunately, I think monopolies are very much the way of the future.

There are compounding factors - really all related to the same forces that have driven competition down in sports card markets: too much money - that are likely to negatively affect sports cards indirectly and far more directly, sports themselves in the form of the prediction markets. If you're not sure what I'm talking about, take a look at Kalshi.

The ramifications of Kalshi and it's peers are just starting to make waves, but they will unavoidably negatively affect sports. The incentive to make money by taking actions that have "no effect" on the games is just too strong. And in turn, I expect the joy of following sports and even more so the collecting markets will ebb.

Absolute power corrupts absolutely, perhaps.

And the unceasing tide of capital going in sports (which to be clear, we have no way of stemming) will only continue to corrupt them and IMHO irrevocably distance them from sentimental (if imperfect) purity of the era of $3 hot dogs and $25 seats of our childhoods.

/old man shaking cane at clouds.

 

[BrookIsland]

And Fanatics just launched their own prediction market. What could go wrong. No moral hazard here...