Mint Condition - March 26, 2021
Card grading chaos -- Your chance to own a used...jockstrap -- Tatís x NFT
Good Morning Squad:
Leading Off
Grading cards has always been about two things: confirming one’s conviction of holding a mint condition card and attempting to increase the value of one’s card. What happens when the industry is backlogged and you have to wait several months for a standard submission? Chaos…and opportunity.
Currently, PSA (aka Collectors Universe) and BGS have standard turnaround times in the months (if you don’t want to pay several hundreds dollars to reduce that to weeks). Collectors Universe told customers this week that it is currently receiving 500,000 cards per week, an amount it used to receive over a 3-month period. For context, ~10 years ago, I had my Mike Trout 2009 Bowman Sterling Refractor Auto /199 BGS Gem Mint 9.5 turned around in 10 days.
If Costco is out of paper towels, you just go to Kroger, Wegmans, or Sam’s Club to get paper towels of equal quality for a similar price. It does not work like this in the grading industry, which is driving this chaos.
What is unique about the space is that there are really only two main players. I liken the dynamic to Coke and Pepsi vs. the rest of the industry: PSA and BGS are the leading entities, there are a few lower cost players that are not as highly regarded (see: SGC, GMA), and new participants are trying to break in (see: CSG, which just expanded into cards last month).
The industry has been taking measures on both the demand and supply side to ease constraints. Collectors Universe raised prices to try to weaken demand, and they have also gone on a hiring spree to help increase throughput. Time will tell whether this will reduce backlogs and turnaround times.
Mint Condition’s Take: This is a critical issue for the hobby, and similar to other industries that have experienced post-COVID supply and demand issues, (ex: auto parts, chip manufacturers), a near-term solution is not on the horizon. But maybe that is what PSA and BGS want: a solid backlog provides a recurring revenue base with strong visibility of future performance, which companies love. Unfortunately, this hurts the hobbyist. And, given PSA and BGS’ brand recognition and customers’ seemingly inelastic demand, lower cost, less recognized companies will find it hard to steal a meaningful piece of the pie. One can hope…and I sure hope that lead times come back to normal so I can get the rest of my Trout Bowman Rookies graded at a reasonable price and in a reasonable time.
Top Auctions
Ending Soon
Lelands Spring Auction (Ending 4/2/21 @ 11pm ET): Premier items include Tom Brady Rookie Contenders Auto BGS NM-MT+ 8.5, MJ Fleer Rookie PSA Gem Mint 10, and Mike Trout MLB Debut Game-Worn Jersey
Goldin March Premium Auction (Ending 4/3/21 - 4/6/21): Premier items include Tom Brady Rookie Contenders Auto BGS NM-MT 8, Mickey Mantle Topps Rookie PSA NM-MT 8, and Luke Doncic NT Patch Auto /10 BGS Gem Mint 9.5
Newly Listed / Coming Soon
Heritage Auctions April Showcase Auction (Listing 4/1/21): Premier items include LeBron Topps Rookie PSA Gem Mint 10, MJ Fleer Rookie BGS Mint 9, and Ken Griffey Jr. Upper Deck Rookie PSA Gem Mint 10
Card Product Releases
New Drops on March 26
Baseball: 2021 Topps Heritage. Find it on Dave & Adam’s for $149.95. - Mint Condition’s Take: Heritage is a timeless Topps product made in the design of ‘72 Topps. We love the look of rookies in this set (see Luis Robert’s below)
Baseball: 2021 Leaf Lumber. Find it on Blowout Cards for $345.00
Football: 2020 Panini Encased. Find it on Steel City for $800.00
Fractional Listings
Recent Drops
Collectable: Sandy Koufax ‘64-’65 Game-Worn Jersey. Market Cap of $426,500. Seller retaining 70.34% ownership. $10/share. <3% ownership left available (vs. <4% on 3/24)
Rally Rd.: MJ ‘85 ‘Shattered Backboard’ Signed Jersey. Market Cap of $280,000. $14/share. 60% ownership left available (vs. 63% on 3/24)
Rally Rd.: Kobe Bryant 1996 Topps Finest Gold Refractor BGS Gem Mint 9.5. Market Cap of $77,000. $11/share. 0% ownership left available (fully funded in <1 day)
Collectable: Frank Robinson 1957 Topps Rookie PSA Mint 9 x2! Market Cap of $76,000 with seller retaining 22.86% ownership. $10/share. 0% ownership left available (fully funded in <1 day)
New Drops on March 26
Otis: Magic Johnson 1981 Topps PSA Gem Mint 10. Market Cap of $47,400. $10/share (Opens @ 12pm ET)
Collectable: This is one of those items that not actually being in possession of it is a good thing…Andre the Giant’s Game-Used Jockstrap. Market Cap of $29,000 with seller retaining 50.48% ownership. $10/share (Opens @ 1pm ET)
Around the Horn
Topps has followed in the L.A. Angels’ footsteps and locked in Mike Trout to an exclusive, long-term deal. Will critics (see: Manfred, Rob) finally get off of Trout’s back for being “unmarketable”?
Fernando Tatís, Jr., though not the first MLB player, is releasing his own NFT collection in April
Feel good story of the day: Freelance photographer laid off from his day job landed the shot featured on one of NHL's top rookie cards
Event Alert: On 3/31, Sportico is hosting Collectible 2.0, where leading players in the sports cards and collectibles space will share their industry insight. Really looking forward to this!
Thank you for reading, folks. Be sure to subscribe and share with friends and family. See you soon!