With a valuation of US$3 billion, Panini, the super giant of the star card, is about to go public

In 2021, Panini and Topps may enter the capital market through mergers and acquisitions.

In the United States, the star card trading market has reached unprecedented heights since the outbreak, and the prices of many star cards have reached historical peaks. This has also made Panini, Topps, and Upper Deck, a number of mainstream star card manufacturers, have been favored by capital. The first two may land in the capital market by landing SPAC (Special Purpose Acquisition Company).

So, what is the valuation of Panini, the “leading company” in the star card world? This answer has surfaced recently.

According to Bloomberg News on July 14, US time, the company of former MLB star player Alex Rodriguez (nicknamed A-Rod) is negotiating with Panini, and the combined entity value of Panini will reach 3 billion. US dollars or more. Bloomberg said that due diligence is in progress, the terms may change, and there are still variables in the completion of the transaction.

If the transaction is successfully completed, it will be the largest transaction in the history of the star card industry. This will exceed the $1.3 billion merger transaction that Topps announced in April 2021 that it plans to complete at the end of the second quarter or the beginning of the third quarter. (Extended reading: A star card was fired to 5.2 million US dollars, this company is going to go public! )

Benefiting from the 2018 World Cup, Panini has an annual income of 1 billion euros

The Panini Group was founded in 1961 in Italy by Giuseppe Panini and is headquartered in Monaco. In addition to the star card that consumers are familiar with, Panini also operates books, comics, magazines, and collectible stickers.

Among them, football, basket balls Star Card is Panini football card two main revenue classification. Especially in the field of football, Panini has established a partnership with FIFA since 1970. During the 2018 World Cup, Panini averaged 8-10 million card packs per day.

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billion, Panini, the super giant of the star card, is about to go public"/>With a valuation of US billion, Panini, the super giant of the star card, is about to go public"/>

Panini 2018 World Cup Star Card Case 

“Thanks to the World Cup, the Panini Group’s turnover in 2018 will reach approximately 1 billion euros, almost twice that of 536 million euros in 2017.” This is the latest annual revenue data published by Panini so far. There is also no annual income of Panini after 2018 on the sports big business network.

In basketball, Panini is even more in a “monopoly position” and grabbed the NBA copyright from Topps. In January 2009, the NBA announced that Panini would become the league’s exclusive star card partner from the 2009-10 season. In March of the same year, Panini acquired Donruss, another well-known star card company at that time, and established a new subsidiary “Panini America”.

billion, Panini, the super giant of the star card, is about to go public"/>With a valuation of US billion, Panini, the super giant of the star card, is about to go public"/>

Panini completed a multi-year contract extension with the NBA in 2017 

In June 2017, after the expiration of the first contract between Panini and the NBA, the two parties announced that they would continue to extend the contract, and Panini would continue to serve as the exclusive NBA star card partner.

Panini said that it has distribution channels in more than 130 countries and regions, and its website claims to release more than 1,000 star card series including football, basketball, F1 and UFC each year. In July 2020, Panini’s official Tmall flagship store in the US and China was officially launched. According to the big sports business, Panini has launched a special Asian star card series for the Asian market.

Monopoly of NBA and NFL copyrights, Panini is far ahead of his opponents

According to Bloomberg News, Panini and Rodriguez have not commented on the transaction.

According to the data, Slam, which plans to acquire Panini, is a special purpose acquisition company (SPAC) established by Rodriguez’s investment company A-Rod Group and a hedge fund. Slam raised $575 million in its February IPO. It stated in the listing document that it will focus on acquisition targets in the fields of sports, media, entertainment, health and wellness, and consumer technology.

billion, Panini, the super giant of the star card, is about to go public"/>With a valuation of US billion, Panini, the super giant of the star card, is about to go public"/>

Rodriguez (right) successfully bid for the Timberwolves earlier 

It is worth mentioning that this is the second big deal made by Rodriguez, the three-time MLB League MVP, in this year’s sports field. In May this year, Rodriguez and Mark Loehr electricity supplier giant with $ 1.5 billion in a successful bid for the Timberwolves, enter the NBA.

Rodriguez, 45, is one of the highest paid athletes of all time. According to Celebrity Net Worth, the MLB superstar earned an annual salary of $33 million at the peak of his career, and Rodriguez earned a total of $441 million during his baseball career.

Rodriguez used his celebrity influence, a network of billionaire business leaders, and salary to establish the A-Rod Group. The A-Rod Group focuses its investment on technology start-ups, high-rise buildings, construction companies, hotel management companies and thousands of multi-family residential shares. According to US media FOS, Rodriguez’s A-Rod Group currently owns more than 30 companies and real estate valued at more than $1 billion.

If all goes well for this M&A transaction, it will break the $1.3 billion record set by Topps in April this year and become the largest M&A transaction for a star card company in history.

As we all know, copyright is the most important factor in the star card. Only by possessing the copyright can the star card manufacturer launch “genuine” star cards in the market.

So far, in terms of league copyrights, Panini owns NBA, NFL, FIFA, UEFA, Premier League, UFC, F1, etc.; in terms of personal contracts, Panini and Kobe, Zion, Doncic, Ronaldo and other stars Signed an exclusive cooperation agreement.

billion, Panini, the super giant of the star card, is about to go public"/>With a valuation of US billion, Panini, the super giant of the star card, is about to go public"/>

Three major star card manufacturers copyright comparison 

As can be seen from the above figure, as a comparison, Panini’s competitors Topps and Upper Deck are unmatched in terms of events or the number of star players. However, Upper Deck owns the signing rights of Jordan and James, and to a certain extent avoids the embarrassing situation of being “completely monopolized” by the NBA star card by Panini.

But overall, in terms of annual income or copyright, Panini is still in an absolute leading position in the field of star cards.

The star card market is expected to reach 98.75 billion U.S. dollars in 2027

Panini and Topps two star card companies are favored by investment companies and are preparing to enter the capital market. This undoubtedly reflects the outside world’s recognition of the star card market track.

Affected by the epidemic, the trading of star cards has ushered in unprecedented development opportunities. According to data from the well-known e-commerce platform eBay, in 2020, the trading volume of football cards, basketball cards and other star cards on the platform increased by 1586% and 373% year-on-year. The star cards are the company’s fastest-growing category in 2020.

Not only football card transaction volume soared, even dilute ball price Star Card has been rising. On July 7, 2021, according to US media reports, a Curry rookie star card was purchased by Alt, a star card investment platform, at a valuation of US$5.9 million. The price of 5.9 million US dollars also refreshed the rookie star card auction record previously held by James.

billion, Panini, the super giant of the star card, is about to go public"/>With a valuation of US billion, Panini, the super giant of the star card, is about to go public"/>

Curry Star Card

As the saying goes, “There are a thousand Hamlet in the eyes of a thousand people”, the question of “whether the star card is a bubble” is also a matter of opinion. According to market research data from Verified Market Research, the global sports trading card market is worth 13.82 billion U.S. dollars in 2019 and is expected to reach 98.75 billion U.S. dollars by 2027, with a compound annual growth rate of 23.01% from 2020 to 2027.

billion, Panini, the super giant of the star card, is about to go public"/>With a valuation of US billion, Panini, the super giant of the star card, is about to go public"/>
billion, Panini, the super giant of the star card, is about to go public"/>With a valuation of US billion, Panini, the super giant of the star card, is about to go public"/>

Lillard displays his signature 

At present, the star card trading market is mainly concentrated in North America, and the market size of other regions still has a certain gap compared with North America. It is believed that after Panini and Topps land in the capital market, they can use the power of capital to expand their development in non-North American regions. Perhaps, the development of star cards will usher in a new round of growth.

At the same time, landing on the capital market means that Panini and Topps need to be responsible to shareholders. This also means that the pursuit of the company under the premise of a beautiful performance reports, panini and Topps whether the sale will increase the number of football card series, so that companies get more and more profit profit? This issue deserves attention.

If Panini and Topps increase the number of sales, it may cause the corresponding star card secondary market to be affected. Therefore, the issue of Panini and Topps’s landing in the capital market still needs to be viewed from two aspects.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/with-a-valuation-of-us3-billion-panini-the-super-giant-of-the-star-card-is-about-to-go-public/
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