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If the topps company were to get sold.

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cgilmo

Well-known member
Administrator
Aug 6, 2008
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Alpharetta, Georgia, United States
Here are some factors.

http://www.thedeal.com/content/priv...backers-exit-both-tied-to-digital-success.php

EXCERPTS

The New York-based company operates three apps. Topps BUNT is the exclusive digital trading card game for Major League Baseball in which users own cards and earn points based on the real-time performance of real-life players. Topps HUDDLE is a digital trading card game for football players. And Topps KICK is a digital trading card game for the Barclays Premier League.

Topps gained an initial foothold in the digital space on July 26, 2011, when it bought digital currency products provider GMG Entertainment for an undisclosed sum. GMG operates as a wholly owned division of the company as Topps Digital Services, through which it houses the three digital apps. Topps BUNT, launched in April 2012 for iOS devices, already appears to be gaining traction; the company on June 4 released the app for Android devices.



"It's a great brand, historic brand, well-known to virtually everyone," said Rosenberg, whose Los Angeles-based firm advised science-themed toy company Uncle Milton Industries Inc.

Madison Dearborn and Tornante own 75% and 25% of Topps, respectively. The company has $205 million in total debt, with $175 million of that being term loans. Some $40 million in debt is due in October 2015, and a $30 million revolver matures in July 2018, according to Bloomberg data.

Toy companies such as Hasbro Inc. and Mattel Inc., or perhaps a non-U.S. company -- the Japan baseball market, for example, is huge -- might not be completely out of the picture if Topps' owners do pursue a sale, Iannini said, indicating that it would have to be at the right price and depend on the growth of its digital offerings.

Other factors continue to favor Topps, sources said, pointing to its exclusive rights to make and sell cards with Major League Baseball's logos and players. The company secured its exclusive license agreement with the MLB on Aug. 6, 2009, and on March 18, 2013, announced it had extended the agreement through 2020.

The deal with the MLB has helped eliminate much of Topps remaining competition, including Upper Deck and Panini America Inc., which in previous years had also produced versions of baseball trading cards.


TL;DR Topps digital properties, partnerships and distribution channels are quite valuable. The right company could scoop them up and profit handily. The industry and the hobby as a whole would benefit if Panini America went in and bought Topps and let them operate as Topps has been with minor improvements. Whatever beef you have with them, I assure you it can be fixed and we can get back to the Topps we all know and love.
 
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sheetskout

New member
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Aug 10, 2008
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Milwaukee, WI
I'm still a little fuzzy on how Topps would be sold having a virtual monopoly on the baseball market. Anyone wanna chime in?
 

James52411

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May 22, 2010
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It's interesting that Topps' financial future is tied so heavily in this article to the Bunt app. Does eBay still prohibit the sale of digital items like a Bunt card?
 

rsmath

Active member
Nov 8, 2008
6,086
1
I'm still a little fuzzy on how Topps would be sold having a virtual monopoly on the baseball market. Anyone wanna chime in?

I figure the PE firm would rather sell and move on to the next opportunity (it's been seven years of an investment that probably doesn't return enough now to be a forever investment) or have to sell because Topps is so debt-laden.
 

sheetskout

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Aug 10, 2008
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Milwaukee, WI
Well that baseball market has a finite value. Panini has the cash, they can do it.

How can you be sure? I would think that Panini would have to go public to raise that type of capital. We're talking in the billions in cash I would think.
 

BBCgalaxee

Well-known member
Sep 9, 2011
6,475
59
So I have a question......

IF Topps gets bought, by an existing card company or not, will the exclusive deal still remain?

Sent from my HTCONE using Freedom Card Board mobile app
 

DaClyde

Well-known member
Jan 17, 2010
1,614
58
Huntsville, AL
It's interesting that Topps' financial future is tied so heavily in this article to the Bunt app. Does eBay still prohibit the sale of digital items like a Bunt card?

What's more interesting is that Topps is so slow to capitalize on their digital assets. Apps are the big thing right now. There are trivial mobile apps that sell for more than Topps is worth, while companies that actually make things sell for pennies in comparison. Topps needs to wake up and realize it is 10 years behind the technology curve and get the lead out. With the right creative team, they could easily sell the digital side of their business for twice what the entire rest of their company is worth.

I'd love to see what Panini could bring to the table if they bought out Topps, as Panini has been operating in a global market since the 70s and their business does not rely solely on baseball cards. Topps' idea of operating globally is just selling it's American products to Japanese and Korean collectors. I'd be surprised if Topps pulled more than $450M in a sale.
 

fordman

Well-known member
Feb 22, 2013
3,190
32
Ohio
What's more interesting is that Topps is so slow to capitalize on their digital assets. Apps are the big thing right now. There are trivial mobile apps that sell for more than Topps is worth, while companies that actually make things sell for pennies in comparison. Topps needs to wake up and realize it is 10 years behind the technology curve and get the lead out. With the right creative team, they could easily sell the digital side of their business for twice what the entire rest of their company is worth.

I'd love to see what Panini could bring to the table if they bought out Topps, as Panini has been operating in a global market since the 70s and their business does not rely solely on baseball cards. Topps' idea of operating globally is just selling it's American products to Japanese and Korean collectors. I'd be surprised if Topps pulled more than $450M in a sale.

I just can't fathom the idea of buying digital cards on the bunt app. I need a physical card in my hand. I understand the digital side of Topps and its allure but if you kill your phone/tablet isn't the information gone?

Sell me your Jay Bruce cards!
 

IUjapander

New member
Jan 28, 2011
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Indianapolis
I found it interesting that when Topps was sold in 2007 it had 0 debt (one of the reasons it was so attractive to a group of flippers). So in seven years the groups racked up $200+ million in debt. On what? They haven't hired anyone, no expansion has happened, and it most definitely hasn't gone into any type of research or product development.
 

DaClyde

Well-known member
Jan 17, 2010
1,614
58
Huntsville, AL
I just can't fathom the idea of buying digital cards on the bunt app. I need a physical card in my hand. I understand the digital side of Topps and its allure but if you kill your phone/tablet isn't the information gone?

It would be like every other app, all the data is stored in The Cloud. Besides, the whole point of BUNT (for the user) is the game, not the cards. The whole point of BUNT for Topps is the sale of "coins" (to buy cards) in the game. It's like any other social media type game. It's all about getting users to spend real money on non-existent things to get ahead in the game. It's not about baseball cards or collecting despite what the graphics might indicate.
 

fordman

Well-known member
Feb 22, 2013
3,190
32
Ohio
I found it interesting that when Topps was sold in 2007 it had 0 debt (one of the reasons it was so attractive to a group of flippers). So in seven years the groups racked up $200+ million in debt. On what? They haven't hired anyone, no expansion has happened, and it most definitely hasn't gone into any type of research or product development.

I would say most of that debt is from securing the exclusive MLB license. I don't think Topps is going anywhere soon but I think Panini has it's eye on it.

Sell me your Jay Bruce cards!
 

sheetskout

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Aug 10, 2008
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Milwaukee, WI
Topps isn't worth billions. Last sale was $385 mil. The new product lines aren't enough of an improvement to push it to more than that.

Have you seen how corporate valuations are being done lately? I would bet Topps' Market Capitalization (if they were still public) is around 1 billion dollars.
 
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