Other Sports
WWE dumps Panini, prompting another trading card lawsuit
In the midst of its dramatic legal battle with trading card rival Fanatics, Panini America now finds itself entangled in another lawsuit.
World Wrestling Entertainment (WWE), which recently merged with UFC, informed Panini two weeks ago that it was terminating its license with the card maker two years early for breach of contract, according to Darren Rovell of the Action Network. Panini is in violation of the injunction by continuing to produce wrestling cards, Rovell reported, while Fanatics is expected to take over the license immediately.
WWE is the second professional sports organization to terminate its Panini contract since the card maker filed a federal anti-trust lawsuit against Fanatics, and Fanatics responded with a countersuit. The NFL Players Association has also terminated its contract with Panini, allowing Fanatics to execute its NFL trading card license three years early. Panini has sued the NFLPA to block the termination and has continued to produce NFL trading cards.
Panini, in turn, has now filed another federal lawsuit to block the WWE termination, according to Sports Collectors Daily.
In its lawsuit, Panini says WWE terminated the contract for failing to produce “physical trading card games” and “digital trading cards,” according to Sports Collectors Daily. WWE is asking Panini to pay the remaining minimum royalty payments on the contract, totaling $5.6 million.
Panini argues that it did not violate its four-year contract, which began in January 2022 and was scheduled to run through 2025.
“At no point did WWE identify any deficiencies in Panini’s performance, complain about a failure to launch certain products or engage in any particular activities, or protest about any alleged failures by Panini to perform under the agreement,” Panini says in its suit filed in New York federal court, according to Sports Collectors Daily.
Panini claims in its suit that it has produced a sufficient number of WWE digital products and that the “trading card games” requirement was fulfilled by “box wars” and “pack wars” events at trading card conventions.
Panini says it has paid WWE royalties “well in excess of” the requirements outlined in the contract.
