PSA Layoffs

[taul166]

If this has been discussed, I apologize. But, did folks see that some key staff members got laid off by PSA. Maybe not a surprise given other happenings with Fanatics, PWCC, etc.

[Leon]

With all of the mergers and acquisitions, it's almost inevitable that people get laid off due to overlapping roles. I have seen it happen very recently at PSA with a person I have known over there for a while. I have no idea if it's anymore than that. Sometimes "right-sizing" is the correct thing to do when a company grows quickly that way.

and a PSA card that isn't really miscut for the series.
.

[Rhotchkiss]

Leon, over the years I have posted a number of cards that used to be yours. I think this may be the first time you posted one that used to be mine! Great card, enjoy, and I agree it’s mislabeled as a miscut.

Regarding PSA, there are numerous reasons companies may lay off employees (indeed, “lay off “may just be a nice word for fire/terminate). Any speculation re this is nothing more than speculation

[Lorewalker]

The article I read stated 11 people were let go. Now to those 11 people I am sure that was impactful but the company has over 1500 employees. They are still hiring to boot. Don't believe everything you hear/read.

Reminds me of the PWCC buy out. Virtually everyone has concluded that Fanatics bought them out because they were nearly insolvent. Where people got that info is beyond me. Maybe Sports Card Radio or Sports Card Investor on youtube? Doubt Fanatics would want or need to buy out an insolvent company. Yes it happens but other than PWCC contracting, as they should in a slowing market, there was nothing else out there that suggested insolvency or that they were struggling.

[2dueces]

T.o.d.d T.o.b.I.a.s was one of those laid off. Todd is probably the leading collector of AFL material and Lance Alworth collector. I’m sure he’ll land on his feet but he was a great asset to the CU board as a moderator.

[Snowman]

Originally Posted by Lorewalker

The article I read stated 11 people were let go. Now to those 11 people I am sure that was impactful but the company has over 1500 employees. They are still hiring to boot. Don't believe everything you hear/read.

Reminds me of the PWCC buy out. Virtually everyone has concluded that Fanatics bought them out because they were nearly insolvent. Where people got that info is beyond me. Maybe Sports Card Radio or Sports Card Investor on youtube? Doubt Fanatics would want or need to buy out an insolvent company. Yes it happens but other than PWCC contracting, as they should in a slowing market, there was nothing else out there that suggested insolvency or that they were struggling.

Ya, I thought that was pretty funny. I kept reading people saying PWCC was insolvent and that Fanatics likely scooped them up for merely the cost of their debt. Lol. Zero chance that is true. They likely heard that from the SCR clown. PWCC was and is a very viable business. They may have been temporarily cash poor, but that is quite different from being insolvent. No way in hell Brent and Betsy are just walking away with empty pockets after everything that they've built and everything that has happened over the past few years. They've been looking to get acquired for a while now. They were either going down swinging or getting paid and walking away while flipping all their haters/eBay the double bird on their way out. They probably walked away with an 8-figure payday.

[bobbyw8469]

They also laid off D.a.v.i.d. Steinberger. He is the one that helped me the time PSA lost my order. I still believe an employee stole the package. But he was my customer service liason.

[parkplace33]

Originally Posted by Snowman

Ya, I thought that was pretty funny. I kept reading people saying PWCC was insolvent and that Fanatics likely scooped them up for merely the cost of their debt. Lol. Zero chance that is true. They likely heard that from the SCR clown. PWCC was and is a very viable business. They may have been temporarily cash poor, but that is quite different from being insolvent. No way in hell Brent and Betsy are just walking away with empty pockets after everything that they've built and everything that has happened over the past few years. They've been looking to get acquired for a while now. They were either going down swinging or getting paid and walking away while flipping all their haters/eBay the double bird on their way out. They probably walked away with an 8-figure payday.

I agree with most of what you are saying, but not sure about this part

They probably walked away with an 8-figure payday

They def got a paycheck, but not sure about 8 figures.

[japhi]

Originally Posted by Snowman

Ya, I thought that was pretty funny. I kept reading people saying PWCC was insolvent and that Fanatics likely scooped them up for merely the cost of their debt. Lol. Zero chance that is true. They likely heard that from the SCR clown. PWCC was and is a very viable business. They may have been temporarily cash poor, but that is quite different from being insolvent. No way in hell Brent and Betsy are just walking away with empty pockets after everything that they've built and everything that has happened over the past few years. They've been looking to get acquired for a while now. They were either going down swinging or getting paid and walking away while flipping all their haters/eBay the double bird on their way out. They probably walked away with an 8-figure payday.

None of us have seen PWCC's books, but them selling into a down market suggests things weren't going well.

Also not a stretch to assume their lending program was in trouble - the assets backing the loans were off 25-90%, and the cost of capital had increased dramatically. Let's be real - this is a financial environment where banks have failed and are still in trouble - what are the odds their lending program was in good shape? That program going south could easily sink the ship. When business fail, they fail fast.

I also suspect the move off eBay hurt sales pretty dramatically, and they for sure lost significant share to Goldin.

Do agree the would have received a decent payday, their client base and technology has real value.

But there is no doubt in mind they sold for a fraction of what they would have exited for 12-18 months prior, and I wouldn't be at all surprised if they were buried in bad debt. Hard to believe that it wasn't a distressed asset when Fanatics acquired it.