For over 70 years, Topps has had the exclusive license with Major League Baseball to produce merchandise featuring players’ names and likenesses on trading cards. That monopoly could soon be coming to an end as MLB’s collectibles deal with Topps expires after the 2025 season.
Topps first signed a deal with MLB in 1954 to produce gum-wrapped baseball cards, securing the exclusive rights to use active players on the front of cards and team logos/uniforms on the back. For decades, Topps reigned supreme as the sole producer of officially licensed MLB cards. The baseball card industry began experiencing more competition in the late 1980s and 1990s from new companies like Upper Deck, Score, and Leaf that utilized innovative technologies and designs.
While these competitors couldn’t use player names or uniforms on their cards due to Topps’ exclusive deal with MLB, they still found success by featuring retired players no longer under contract restrictions. They also experimented with novel insertion techniques, extra-glossy surfaces, and crafty marketing strategies to carve out their own niche. By the mid-1990s, Upper Deck had surpassed Topps as the highest-grossing baseball card company in part of their popularity, though Topps retained its exclusive MLB player license.
In 2009, The Upper Deck Company filed a federal antitrust lawsuit against MLB and Topps, claiming their exclusive agreement violated fair competition laws by creating an unlawful monopoly for Topps. The court case lingered for several years before finally being dismissed in 2013 when a judge ruled MLB was within its rights to license intellectual property however it saw fit. By that point the damage was done as interest in traditional baseball cards had been on the decline for over a decade.
Now, as Topps approaches the expiration of its contract at the conclusion of the 2025 MLB season, the landscape of the baseball card industry has dramatically changed. Technology has reshaped the collecting hobby, with digital platforms and memorabilia/autograph cards gaining more popularity amongst modern fans compared to the traditional wax pack slots of the past. Non-fungible tokens (NFTs) featuring sportscards and highlight videos have also exploded onto the scene in recent years.
In light of these shifting collectibles trends, MLB is exploring options that could open the doors for more competition amongst trading card manufacturers once again. They are said to be considering proposals from not only Topps to renew their exclusive deal, but from other bidders like Fanatics, the dominant brand in licensed sports merchandise. Whether MLB ultimately decides to stick with Topps or go in a new direction remains uncertain – but it’s clear the league now views its trading card rights as extremely valuable intellectual property worth getting top dollar for through an open bidding process.
No matter who ends up with the MLB player license going forward, the trading card industry is likely in store for increased competition and new product offerings that tap into the growing spectrum of digital collecting. One path MLB may take is awarding separate contracts for physical vs. digital goods, allowing multiple bidders to coexist across different collecting verticals. But Topps’ long monopoly appears destined to end after 2025, opening up legendary players, uniforms and logos to appear on cardboard produced by competitors once forbidden from the baseball card game. The future of MLB trading cards and memorabilia is poised for significant changes as a new era approaches.
In summary, Topps has enjoyed exclusive rights to produce MLB-licensed trading cards for over half a century. Due to factors like new competition, technological advancements, and evolving fan preferences – the landscape has shifted dramatically. As Topps’ current deal expires after 2025, MLB is exploring alternative pathways that could introduce more competition back into the baseball card industry for the first time in decades. No matter the outcome, it’s clear the valuation of MLB intellectual property associated with collectibles has skyrocketed. The future is wide open as to how and by whom baseball cards will be produced and collected going forward in this new chapter.
