Collectors (PSA) Acquired SGC

[Peter_Spaeth]

Originally Posted by Casey2296

Unfortunate, no good things for collectors will come of this.

The hobby has not been about collectors for a long time. Investors, influencers, big businesses, breakers, you tubers, card doctors, pumpers, guys with t shirts ill-defined jobs and multiple devices calling each other bro', whatever.

[Lorewalker]

Yup this is big business now and all about profits. Will be interesting to see how this pans out and what Nat has in mind for SGC. If the companies stay separate maybe SGC will be for vintage...I can hope at least.

Either way not sure this is going to be too terrific for collectors, in general, especially the way Nat runs PSA.

[Peter_Spaeth]

Guess he finally made Dave an offer he couldn't refuse.

Look forward to the spin by the SGC fans.

[Peter_Spaeth]

https://twitter.com/darrenrovell/sta...Rx-1Hmr4TKbEyQ

[ValKehl]

Is this merger something that the anti-monopoly lawyers are likely to pursue?

[Lobo Aullando]

Probably too few zeros in the industry's annual revenue. I could be wrong, of course.

Originally Posted by ValKehl

Is this merger something that the anti-monopoly lawyers are likely to pursue?

[calvindog]

Originally Posted by lobo aullando

probably too few zeros in the industry's annual revenue. I could be wrong, of course.

🚨🚨🚨🚨

[Jeremy102175]

Originally Posted by ValKehl

Is this merger something that the anti-monopoly lawyers are likely to pursue?

I think for the merger to violate anti-trust laws a party would need to prove that the merger would make it impossible to compete in the market. Companies like Beckett and CGC will have a tough time making that case since they probably won't go bankrupt as a result of the merger. Consumers already have limited choices for quality grading companies though so this really sucks for collectors and nobody can do much about it.

[Peter_Spaeth]

Originally Posted by Jeremy102175

I think for the merger to violate anti-trust laws a party would need to prove that the merger would make it impossible to compete in the market. Companies like Beckett and CGC will have a tough time making that case since they probably won't go bankrupt as a result of the merger. Consumers already have limited choices for quality grading companies though so this really sucks for collectors and nobody can do much about it.

Actually, the standard is that the merger has to threaten to substantially lessen competition or tend to create a monopoly. It doesn't have to make it impossible to compete. Section 7 of the Clayton Act.

[Jeremy102175]

Wow, beautifully done sketch!

[refz]

Originally Posted by Peter_Spaeth

The hobby has not been about collectors for a long time. Investors, influencers, big businesses, breakers, you tubers, card doctors, pumpers, guys with t shirts ill-defined jobs and multiple devices calling each other bro', whatever.

Well said bro

[brunswickreeves]

My grading priorities are: 1) Cost of service, 2) Look of the holder and card in it, then 3) Turn around time. I suspect if SGC isn’t able to retain its uniqueness in these areas, collectors will flock to an alternative and drive up business of others like Beckett and CGC.

[mrreality68]

normally I do not mind mergers or buy outs. But the 2 biggest graders owned by the same parent company even if kept separate (for now I am sure down the line it will not stay that way) does not seem good for the collectors or for the industry in general.

[x2drich2000]

Originally Posted by brunswickreeves

My grading priorities are: 1) Cost of service, 2) Look of the holder and card in it, then 3) Turn around time. I suspect if SGC isn’t able to retain its uniqueness in these areas, collectors will flock to an alternative and drive up business of Beckett.

Considering Beckett is ultimately owned by Greg Lindberg, I would hope people would take into account that he benefits from them using Beckett. If you're not aware of who Greg is, here is some light reading on his ongoing issues and the impact he has had on people:
https://www.sportscollectorsdaily.co...ed-to-7-years/

https://www.justice.gov/criminal/cri...reg-e-lindberg

https://www.insurancebusinessmag.com...me-437531.aspx

https://cblife.com/

[hcv123]

This is so bad for so many reasons! I hope those emergency lights on Jeff's post indicate he or someone in a position to challenge this from a monopolistic perspective (potentially hurts Beckett and CGC the most) are going to do so. How can a single company be allowed to own 85% of a given market?

[topcat61]

Originally Posted by hcv123

This is so bad for so many reasons! I hope those emergency lights on Jeff's post indicate he or someone in a position to challenge this from a monopolistic perspective (potentially hurts Beckett and CGC the most) are going to do so. How can a single company be allowed to own 85% of a given market?

The Federal Trade Commission would or could study to see if there's a potential impact on consumers through a formula they use to determine monopolization. Personally, I think the data is there to warrant an investigation by the FTC. According to the Gemerate numbers, PSA\Collector's Universe has 78% of the grading market while SGC has 10%. You can file an inquiry with the FTC at ant time but the problem the hobby may run into is getting the FTC to understand how this affects consumers. I don't think Lina Khan is a collector of Sports cards but the FTC has investigated the hobby's inner-workings on 3 seperate occasions.

[Peter_Spaeth]

Originally Posted by topcat61

The Federal Trade Commission would or could study to see if there's a potential impact on consumers through a formula they use to determine monopolization. Personally, I think the data is there to warrant an investigation by the FTC. According to the Gemerate numbers, PSA\Collector's Universe has 78% of the grading market while SGC has 10%. You can file an inquiry with the FTC at ant time but the problem the hobby may run into is getting the FTC to understand how this affects consumers. I don't think Lina Khan is a collector of Sports cards but the FTC has investigated the hobby's inner-workings on 3 seperate occasions.

As I posted on either this or the other thread, the increase in the HHI index (sum of the squares of market shares) certainly suggests a significant increase in market concentration in an already highly concentrated market. But being below reporting thresholds, and involving discretionary spending on sportscards, not sure the government would care.

[ullmandds]

ugh! I only hope that maybe SGC ditches their current crapass holder in favor of PSA's.

[The Nasty Nati]

At this point I wouldn’t be surprised if Fanatics acquires PSA.

[raulus]

On the bright side…maybe SGC is finally getting a registry now!

[The Nasty Nati]

Maybe SGC will shrink their comically large grade font now.

[clamendo]

Originally Posted by raulus

On the bright side…maybe SGC is finally getting a registry now!

Agreed.


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[jchcollins]

Originally Posted by ullmandds

ugh! I only hope that maybe SGC ditches their current crapass holder in favor of PSA's.

I had this thought as well. They could keep the black insert and the tux look, but IMO SGC is overdue for some slab changes like making them thinner, incorporating QR codes, etc.

[ullmandds]

Originally Posted by jchcollins

I had this thought as well. They could keep the black insert and the tux look, but IMO SGC is overdue for some slab changes like making them thinner, incorporating QR codes, etc.

i agree...the slabs are big, clunky...and not very protective...the come apart way too easily.

[Gorditadogg]

Originally Posted by x2drich2000

Considering Beckett is ultimately owned by Greg Lindberg, I would hope people would take into account that he benefits from them using Beckett. If you're not aware of who Greg is, here is some light reading on his ongoing issues and the impact he has had on people:
https://www.sportscollectorsdaily.co...ed-to-7-years/

https://www.justice.gov/criminal/cri...reg-e-lindberg

https://www.insurancebusinessmag.com...me-437531.aspx

https://cblife.com/

There's a guy you can rely on for honest grading!

[wolf441]

Originally Posted by Peter_Spaeth

The hobby has not been about collectors for a long time. Investors, influencers, big businesses, breakers, you tubers, card doctors, pumpers, guys with t shirts ill-defined jobs and multiple devices calling each other bro', whatever.

Great, I laughed with a mouthful of coffee and now have to change my shirt, thanks Pete! That last line is an absolute classic.

[Snapolit1]

Originally Posted by wolf441

Great, I laughed with a mouthful of coffee and now have to change my shirt, thanks Pete! That last line is an absolute classic.

Was a lot better when the hobby was about older fat con artists, guys with pagers on their waist, wearing big ass gold medallions around their necks, conning 12 year olds at card shows, talking about the Playmate of the Month July 1978. The good old days.

[Tyruscobb]

Competing businesses benefit the consumer. Although there are potentially some positives, this is a net loss for consumers. Those cheering this deal need to take an Econ 101 course.

[jimmer77]

I have 2 subs for SGC queued up and was going to complete the sub and mail out on Saturday, but now with thus news not sure what to do.

I did find it a bit comical that Peter seemed to praise collectors in his video, but in the past all but criticized the "other guys" when promoting SGC...I guess keeping your job will have that affect.

AB InBev, is similar in nature. They purchased Miller Coors a few years ago and both still exist aa separate companies albeit with caveats.

[calvindog]

Originally Posted by jimmer77

I did find it a bit comical that Peter seemed to praise collectors in his video, but in the past all but criticized the "other guys" when promoting SGC...I guess keeping your job will have that affect.

It's business, it's competition, they're trying to win. And I have no doubt that Peter & Co. will work as hard as possible to continue to outperform PSA in terms of quality of grading, turnaround times, etc. If I bought a grading company today, the very first person I would want to hire would be Peter -- and I don't know who would be second. In my eyes, he's the overall top person in the grading business today.

[Rhotchkiss]

Interesting video at post 137 (I am sorry but I do not know how to just post the video, maybe someone smarter can do that). I don’t know who this guy is or who his “sources” are, but it’s an interesting take.

https://www.blowoutforums.com/showth...1581626&page=6

[Peter_Spaeth]

Originally Posted by Rhotchkiss

Interesting video at post 137 (I am sorry but I do not know how to just post the video, maybe someone smarter can do that). I don’t know who this guy is or who his “sources” are, but it’s an interesting take.

https://www.blowoutforums.com/showth...1581626&page=6

https://www.youtube.com/watch?v=uqsNaWftwe8&t=5s

Ryan on something like that the You Tube at the bottom will bring up the video on their site.

[SyrNy1960]

Originally Posted by Peter_Spaeth

The hobby has not been about collectors for a long time. Investors, influencers, big businesses, breakers, you tubers, card doctors, pumpers, guys with t shirts ill-defined jobs and multiple devices calling each other bro', whatever.

It truly is amazing how things have changed over the years. At 64, I liked collecting more before the world-wide web, and all of the above mentioned. Card shows, meeting people, and trading was fun.

[Mozzie22]

Originally Posted by Peter_Spaeth

The hobby has not been about collectors for a long time. Investors, influencers, big businesses, breakers, you tubers, card doctors, pumpers, guys with t shirts ill-defined jobs and multiple devices calling each other bro', whatever.

This may be the most accurate statement in the history of this forum.

[Rhotchkiss]

Thanks Peter! It’s a good video. I am glad it’s now more accessible.