Thursday Aug 13, 2009
The Brill Report: Upper Deck Goes Back to School
If you needed more evidence the new trading card market is in the tank just look to the latest movements in the category. Consolidate, eliminate and now reach in places you would not have reached for if the market were strong. Upper Deck, on the heels of it's losing its Major League Baseball License, signed a deal to take over much of the collegiate card market with the Collegiate Licensing Company (CLC).
The tell-tale sign is the quote from CEO Richard McWilliam in the company press release.
"The move strengthens Upper Decks already firm position as the industry leader in delivering the most sought-after rookie cards in the market."
College cards have never ever been considered "Rookie" cards by anyone, especially the self proclaimed authorities on the subject, the price guide magazines. The term "RC" does not and will not appear in price guides for trading cards not licensed by the major sport and league. These cards have been and always will be "first" cards of a player, but never his "rookie" card.
The move shows the desperation of another card company trying to regain something it has lost. By adding college baseball players to it's package officially, Upper Deck is sending out the message it will look to try what Donruss has done somewhat sucessfully the last couple of years. Make baseball cards with draft picks and minor leaguers with no logo's and add in retired players.
The difference is Upper Deck has the right to use current major league playes in it's sets but without team logo's and MLB trademarks. It's license with the MLB Players Association allows it. Does it allow these major league players to appear in sets with non-union members however? This has always been a sticking point with the union.
Remember Barry Bonds dropping out of the union contract for baseball cards? The union said he could appear in any set the company wanted as long as no other current players were in the set. Well that says a whole lot. Topps eventually worked out a deal to bring Barry back as an insert somehow by himself with Barry as the ONLY player in the set. Remember the Barry Bonds chase to 714 cards? Topps overpaid a bundle for that mistake.
So what will Upper Deck do? Will they make players from college and retro college players (which they now have the right to do) and put them in stand alone sets? Yes, this is a given. These will be sold at stadiums, college book stores, college publications and more. Will the company also mix in some of those players into MLBPA sets it puts out? Without the logo's you might wonder if the union will allow it. No matter what UD does, the union will take a cut and with dwindling baseball card products on the market they will still be looking for their cut. We'll have to wait and see.
What does it mean for companies such as SAGE which is putting out a 2009 College Draft Picks Football Series, several of them? Sage basically with 6 autographs per box is selling autographs of players coming out of college who are willing to sign with a small company. With UD's autograph dollar power will Sage be on a short leash and will the company survive? It survived Press Pass because it created a niche. Upper Deck has the money to do that niche better.
A few years ago UD got the wrong idea when it got the license to make USA Baseball Player cards. They thought they could put these USA players into certain sets as "Rookies" but soon found out there are only specific uses for USA players allowed and what amounts to the Olympic team put a stop to it. Topps had already given up the license with USA.
Don't get this wrong because it looks as if UD will also be joining the draft pick market in a different way in both basketball and football. There will be other players too which means track, swimming and women's hoops. This all gives UD more autograph potential, cheap autograph potential as well as cards for "Americana" style sets.
If times were good Upper Deck, Topps and Donruss would not be going after college trading card licenses. The products were crap when they came out in the early 1990's and while it is believed UD will make much better cards than were made then, they are still college cards. Each college has a strong fan base who buy apparell, teddy bears, pencils and anything else with a logo on it. They do not necessarily buy "trading cards." It is a different animal and while they will translate into gift sales they will not translate into collector sales to any strong degree. The wide variety of schools will probably translate into a few big name schools.
You can count a dozen key places before you get to second tier. There are only so many Notre Dame, Penn State, USC, Michigan, Florida and Texas fans before you move into the next level of fans. Don't get me wrong all schools have their rabid fans. Will they be enough to warrant making trading card series or is "any additional money which comes into the pot good money," the stretch of an idea here?
The license kicks in during 2010. Upper Deck, Topps and Panini hope the market turns before then. If it does and dramatically, a collegiate license may just be history.
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(CARLSBAD) -- Another $50 pack of trading cards from Upper Deck. Prominent Cuts has 6 boxes in a case, 5 packs in a box and 4 cards in a pack. Cost for dealers is just under $30. Retail would normally be $50. This means there are 120 cards in a case. In the old days they wondered if people would buy cards if they jumped from 40 cents a pack to 50-cents. Then UD came along and broke the $.99 pack barrier and a new order was formed.
(TIGER WOODS) -- Does the renewed play of Tiger Woods in the majors mean a return to the good old days when his Rookie card shot into the thousands of dollars? Look out Tiger is on a roll and already his memorabilia is beginning to attract attention again. The cards should follow.
(WASHINGTON) -- The Supreme Court will look to the expertise of Sonia Sotomayor in an upcoming case involving the NFL. The case could but not likely reflect on the exclusive deal given to Topps over Upper Deck to make baseball cards. The justice, in earlier times, helped settle baseball's labor problems. Now she will help decide Needle vs. the NFL. Needle makes hats and the NFL gave another company the exclusive right to make caps. Sounds like anti-trust and what does it mean for Topps/Upper Deck? Probably not much since in 1922 Congress granted baseball anti-trust exemption as our National Pastime. It was upheld back in 1972.
(AFL) -- Does the demise of the Arena Football League mean those few trading cards Upper Deck and others put out will become valuable? Not likely except for a few guys who might make it in the NFL, but what will become valuable are things such as stickers and front office letterhead which were likely shredded on the way out the door.
(VENTURA, CA) -- For those of you who might be interested in getting a signed copy in person of "Fan Letters to a Stripper; A Patti Waggin Tale," Bob Brill will be doing a signing in Ventura on September 24th, a Thursday night at the Ventura, California Museum downtown on California Street. It will be at 5:30. Books will be available at a discounted price if you want to purchase and the autographs are of course, Free! Such a deal. You can contact Bob at bob.pattiwaggin-AT-gmail-DOT-com for more information or go to our web site www.pattiwaggin.com to find out more. The Special Edition books may not be ready by then, but if they are we will have them as well.
Tags: supreme afl mcwilliam deck fantasy us topps don footbal cards court football woods mlb waggin richard league college rudolph upper anti trust mlbpa arena trading donruss sotomayor tiger collegiate bob patti clc panini brill
Sunday Oct 26, 2008
These Guys Should Be on ThePit.com
The Wall Street Journal just reported the story of a $1 million fantasy football league run by some of the world's wealthiest financiers.
According to two participants and several business associates of league members, each of its 10 teams pays $100,000 to enter. The winner takes home a grand prize of $600,000, with $300,000 going to the second-place finisher and $100,000 for third place. Participants say the winnings are donated to charity.
Despite its high stakes, the Wall Street League isn't markedly different from any other. The annual draft is usually held at one of the owners' offices on a weeknight, usually right before the NFL season's opening weekend. It begins right after the stock market closes, and there's a strict one-minute time limit for each pick. (One participant says this season's first pick was either San Diego Chargers' running back LaDanian Tomlinson or Philadelphia running back Brian Westbrook). Owners who are out of town at the time participate by teleconference. Those who attend in person bring extensive notes and enter their draft picks on laptops while eating catered sandwiches.
Thanks to an exemption in Internet gaming laws, fans can wager on fantasy football and use the internet to participate in leagues that award prize money. Unlike sports betting or casino-style card games, fantasy sports are considered games of skill rather than games of chance, and are therefore sanctioned by government gaming authorities.
If run-of-the-mill Fantasy Sports participation isn't enough to satisfy your desire to play for real stakes and you aren't invited into the million dollar Wall Street Fantasy League, then you should definitely check out ThePit.com. At ThePit, you use collectibles as a proxy for buying and selling athletic potential. If you pick the right prospects you can make real money. Worst case is you amass a great collection of sports cards. Best case is you quit your day job. Either way you end up having fun.