Quote:
Originally Posted by Grid
The last minute wording, that caused the deal to not happen. Is listed in the actual lawsuit filing. Fanatics knew the scam Panini was running, and wanted to base the payoff on their own "real world numbers".
https://fingfx.thomsonreuters.com/gf...23-cv-6895.pdf
In a nutshell, section 9. Panini got caught falsifying earnings projections, which would have made Fanatics pay more to them as an early termination fee. IE, if you want the license now, you must pay us the profit we would lose, if we stopped making cards sooner.
This is how its worded in the counter suit
In fact, Fanatics eventually learned through private discussions with the CEO of Panini America that Panini itself was relying on a different, materially lower set of accurate, updated figures for its own internal use while still feeding Fanatics the pumped-up projections
And since Panini wanted to use their own fake projections, and not those of Fanatics, the deal was off the table. |
Fanatics offer now would be under 50% of what it was a few months ago. If NBAPA pulls the license the offer will be close to a penny on the dollar. Not pennies. A single penny. At that point Panini is going to get into the same situation that Brent Huigens got into. He got offered a ton of money to sell PWCC and turned it down. Essentially sold the company later for what he owed because of debt/bad loans/financing, etc. If Panini has both licenses terminated now they are going to be on the hook for all redemptions, points, and unfulfilled blockchain cards with really nothing they can adequately replace them with. They would be selling everything basketball and football to Fanatics basically for nothing just to get out of what they owe. Only reason Fanatics would still buy is to avoid more lawsuits, wasted time, and being able to print ASAP.