Upstart Italian Company Secures Exclusive Rights to NBA Trading Cards
The National Basketball Association (NBA) sent shock waves through the trading card community Tuesday when they announced the signing of a new 4 year licensing agreement with The Panini Group that will grant the Italian based sports collectibles company exclusive global rights to produce NBA trading cards, collectible stickers, and sticker-albums.
The NBA's newly signed agreement with Panini marks the end of their 17 year long relationship with Upper Deck, and their 50+ year relationship with Topps, who manufactured their first NBA trading card set in 1957. Officially, the Panini contract takes effect October 1, 2009. However, NBA Senior VP/Global Merchandising Sal LaRocca said the league is working with its other licensees to help Panini get rookie cards to market sometime late this summer.
Sources say that Panini beat the best offers from the incumbent licensees by 25%. Apparently the NBA, Topps, Upper Deck, and Panini were in agreement that a single license was the right arrangement for the shrinking basketball card market. While Panini will not have the brand strength of either Upper Deck or Topps, marketing investment in the category will double because of the new single licensee arrangement, which parallels the aggrement currently in place between Upper Deck and the NHL.
As the NBA's exclusive trading card and sticker partner, Panini will produce NBA trading cards, stickers and sticker albums beginning with the 2009-10 NBA season. Together with the NBA, Panini will provide significant retail marketing and promotional support including TV, print and on-line initiatives and in-store events for both hobby shops and retailers.
"Over the years, NBA trading cards have served as an important source to connect fans of all ages with our game," said Sal LaRocca, Executive Vice President, NBA Global Merchandising Group. "As we look to the future of our trading card business, there is general consensus, including with our current partners, Topps and Upper Deck, that moving forward with an exclusive partner is the best way for us to energize the category on a worldwide basis. We are fortunate to have had three outstanding companies interested in our trading card business and believe Panini's position as the leading global company in this industry aligns best with our global growth strategy."
Panini says they plann to leverage the strength of the NBA as a global sports league to develop the international trading card business, in addition to increasing their presence in the United States. Currently, Panini has a successful North American collectibles business that features a number of non-sports trading card brands such as Disney's Hannah Montana and High School Musical, and Warner Bros.' Harry Potter, as well as with the UEFA Euro 2008 and FIFA World Cup sporting events.
"As the leading global sports league, the NBA provides Panini with an international platform to expand the global trading card and collectibles markets by building our business in the U.S. and attracting new collectors around the world," said Peter Warsop, Panini Group Licensing Director.
