Well, sometimes industries change rapidly. Just ask The Topps Company and Mudrick Capital Acquisition Corporation II (“MUDS”) as news has been issued by both parties that their pending Special Purpose Acquisition Company (SPAC) merger. On news that Major League Baseball is not renewing its baseball card license after the 2025 season, the valuation metrics are just not the same.

The sad part about this deal termination is that it will have ended a deep partnership that has lasted for 70 years. The other side of the coin is that new products and new direction may be seen. The latter remains to be seen.

The Topps Company and Mudrick both gave separate announcements about mutually terminating this SPAC merger. Topps plans to remain a private company. Apparently, not even starting National Baseball Card Day was able to make a difference.

Mudrick Capital Acquisition Corporation II announced that the merger agreement with Topps Intermediate Holdco, Inc. and Tornante-MDP Joe Holding LLC has been terminated by mutual agreement. The change was after news broke on August 19, 2021 that Major League Baseball and the Major League Baseball Players Association would not be renewing their respective agreements with Topps. Those deals come up for renewal at the end of 2025 and 2022, respectively.

Fanatics has reportedly been able to take control of the MLB license, but that deal will not start until 2026. The deal comes on the heels of a large capital raise and a valuation that is reported to be close to $18 billion.

According to the Topps announcement:

Topps expects to be able to produce substantially all its current licensed baseball products through 2025, pursuant to its existing agreements, and will build on the exceptional performance in the second quarter of 2021 in its Sports & Entertainment segment, and its Confections segment.

If there is one constant in life, change is that constant. How these changes in the years ahead play out remain to be seen.