The Topps/Upper Deck Monopoly

[mikesilvia]

Most baseball collectors know that baseball cards today are produced by Topps and Upper Deck. This is also generally true across most sports. The sports card industry wasn’t always a monopoly and was a billion dollar industry. In an attempt to limit the saturated sports card market, MLB canceled their license with Donruss in 2006. Just before that Fleer went bankrupt and was bought out by Upper Deck. The reasoning behind MLB not renewing their contract with Donruss was weak at best. How is cutting of Donruss completely off, while allowing Upper Deck to produce new lines of product reducing a saturated market? All they did is cut one company off and allow another to produce more, further solidifying Upper Decks monopoly.

Then there is In the Game, a small Canadian company that produces hockey cards. The NHL has consistently denied the company a license to produce NHL cards and they are forced to produce minor league and retired NHL cards. In the Game will find it hard to grow producing card for such a limited market.

There is a sports card monopoly with Topps and Upper Deck across the board. Upper Deck buying Fleer and then releasing products under the Fleer name may fool some, but not the savvy collector. Consolidation in the industry has not been good for card collectors. When there is a monopoly in any industry the consumer suffers due to high prices and companies stop innovating. There was a point when Upper Deck was new to the sports card industry and they opened eyes with a pack that was expensive at $1 a pack. Today the cheapest pack you will find is around $3 with the average pack around $5-$20 and as high as several hundred dollars. The sports card industry needs to be more open and Upper Deck and Topps need to let go of their monopoly or the future of the sports card industry will continue to suffer. At one time the sports card industry was a $1.2 billion industry. Today, the industry continues to decline and is about 1/6 the size of that peak.

What is the solution to this decline? First, the sports card industry must make their product more appealing to the youth. This is extremely challenging considering today’s youth are more interested Play Station 3 and Xbox video games than collecting cards. Today, a typical box of cards costs more than a new Xbox/PS2 video game. Having just a few companies to choose from ensures prices will stay high and out of reach of the youngest collectors. Second, the professional sports organizations needs to open up their licenses to qualified card producers. This is key since sports card producers are completely reliant on the professional leagues and player associations. The more companies that produce high quality sports cards, the more downward pressure on prices there will be. At one time there was an open market that allowed Upper Deck burst into the sports card industry and forced innovation. Upper Deck was the first company to produce a $1 pack of cards, autographed cards and for the first time in 10 years got licenses with all the major professional sports to include racing. Now, Topps and Upper Deck have closed the door on an open market and we may never see another company enter the market like Upper Deck did in 1988. If the sports card industry refuses to change the market will continue to slide and become obsolete with a single company producing cards and dictating all prices.

[randallcards]

Agreed nice read! But Racing Needs somthing New...

[gerald hewitt]

Thanks Mike. My opinion is that the keys to collecting are focusing on what you want/like from a card, building sets, and finding rare, interesting, or obscure cards of your favorite players. An open market is necessary for 'true' collectors.

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Trading vintage Topps and Bowman

[gerald hewitt]

I got my teenagers interested in collecting for a portion of a summer three years ago. The interest didn't last. My two young ones like the cards, but DEFINITELY aren't interested in the 'busy work' of caring for them to keep them in condition. I don't blame them.
One of the other great things about collecting is the 'attic' or 'shoebox find' where a past collector can rediscover their youth by finding that treasure chest in storage. This is how I got my interest rekindled. Maybe youth these days can look forward to these moments.
One last thing: my youth was full of my Dad taking me to games in the Spring and Summer. When I take my kids to the game I get nasty looks 'cause my kids have a hard time staying in their seats or make a commotion during an inappropriate time. Also, I can't afford to take them too much 'cause of the restrictive pricing. Maybe when BASEBALL makes a stronger effort to reach out to their young fans of the future, the card industry will reap the benefits.

[DimeTimeSportscards]

It is hard to bring in new collectors when old school collectors have lost interest as well... Nice read Mike!!

Ty

[gen2rx7]

I feel that we as collectors need to voice our oppinoins with the all mighty $$$$.

For myself, I am not to happy with UD, so inturn, I have not bought much UD this year. As for Topps, I would buy more if they quit making the retro style cards and got a little more modern.

But by far I have to say Donruss is my Favorite this year, I got back into this hobby after a 2 year "vacation" , and have found that Donruss has blown the competion away with style, value, and appeal this year!!

As far as the young collector, I agree about the pricing, almost everytime i go to the shop here in town I see the same two boys there. And they only buy 2 packs of Fleer (cus its less than $2). And that is awesome.

Also my son who is 5 knows what penny sleeves are , top loaders, and screw downs, ( tho he hasn't figured out what each is exactally for yet i am still teaching him) That is how we as collectors can carry on the Hobby. I learned from my dad who learned from his dad and so on and son.

[doniceage]

Then there is In the Game, a small Canadian company that produces hockey cards. The NHL has consistently denied the company a license to produce NHL cards and they are forced to produce minor league and retired NHL cards. In the Game will find it hard to grow producing card for such a limited market.

Mike,
ITG has only had this for the past (counting 2 years). Well as you say this ITG has done very well over the 2 years if you ask the President. This is not all bravado as Beckett has him do a Feature Article by him answering a lot of questions in a recent article. One thing for him he is accessible.

They did have licensed cards prior to (2 years ago). The current deal with UD is for 5 years where it is to be revaluated.

p.s. Why has UD gotten all the license agreement I wonder. IS IT JUST BECAUSE THEY HAVE THE MOST DOLLARS TO THROW AWAY. Another note is Topp's generates a ton more in dollars off it confectionary unit than cards.

D
O
N

[Ripken8fan55]

It would be nice to see some compitition in the card markets. And cheaper pack prices would be nice also. Alot of young people can`t afford to buy cards in todays market. Alot of older folks can`t either lol. NASCAR is a Press Pass monopoly.

[doniceage]

It would be nice to see some compitition in the card markets. And cheaper pack prices would be nice also. Alot of young people can`t afford to buy cards in todays market. Alot of older folks can`t either lol. NASCAR is a Press Pass monopoly.

Ya might be saying that now but if Nascar continues to grow just watch UD want a piece of the pie.

DON

[Ripken8fan55]

They did have a piece of the pie at one time in the 90`s.