“PSA buys SGC, now what!?!” That’s pretty much the reaction of all sports card collectors when they woke up this morning and read Darren Rovell’s breaking news.
PSA, SGC make deal official. https://t.co/Tl5Ap5b6RA pic.twitter.com/yZOlhF5ioo
— Darren Rovell (@darrenrovell) February 29, 2024
Technically, It’s Collector’s Universe that’s buying SGC, and they’re just the parent company to PSA.
But make no mistake, PSA will run the show going forward, and SGC should remain the second banana, but under Collectors’ umbrella.
I sat in bed and thought of a dozen questions as the news that PSA buys SGC raises, so I thought I’d do a brain dump with what I think the answers to those hypothetical questions I made up.
PSA Buys SGC: Now What!?!
Since SGC had a relatively small market share compared to PSA, this transaction is similar to the fast-food burger market, if McDonald’s bought Shake Shack! A lot of things will change, mostly to benefit PSA’s key performance indicators. But what can collectors expect?
1. Will SGC remain a separate grading service, or will everything just go to PSA?
SGC’s President and CEO Peter Steinberg has already said that SGC’s operations will remain relatively the same, but I wonder for how long.
SGC operates out of Boca Raton, and PSA has offices in California and New Jersey already. I can see PSA leaving SGC in South Florida, and just letting them run the show from there. Why not?
2. What does this do to the value of cards already graded by SGC?
Cards slabbed by SGC are generally valued at about 90% of the same card slabbed with PSA, and I doubt that really changes going forward. I do wonder if the old SGC slabs, with the green labels, are allowed to be reholdered by the new PSA/SGC team. Maybe for a heftier fee?
3. Will we still be able to get tuxedo slabs?
I think so. The technology and machinery is already in place in South Florida, and the slabs are certainly popular and well received. It will be the same company, but under a different brand, like how Sprite is owned by Coke, but it’s a different brand.
If PSA gives up SGC’s tuxedo look, I could see CGC or Beckett making a change and gaining some leverage here.
4. Will we send submissions to two places?
if you want tuxedoes, you’ll likely have to send your cards to Boca Raton still, is my guess. So if you have a combined submission, you will probably have to send to two companies, and I wonder if you’ll have to have a minimum amount of cards for your PSA sub, still. (SGC doesn’t currently ask for a card minimum.)
5. Will the PSA pop report have SGC slabs on them?
It only makes sense that they combine the pop reports, like GemRate.com already does.
6 Will the PSA Registry add SGC slabs?
They better!!!!!!! This excites me the most, since I have great cards in both slabs! The PSA Registry is a cool app where collectors can compete with each other with different subsets (Dream Team, ’80s Hall of Fame Quarterbacks, etc.).
7. Will we have to pay an annual fee for SGC slabs?
My guess is yes… and it might be more expensive now than PSA’s current cost.
8. Will PSA start being transparent, like Peter Steinberg of SGC?
My guess is no. If SGC acquired PSA, it would be a different story. But I think PSA (which already owned Boardwalk and Park Place) are likely paying handsomely for the green properties and railroads.
9. Will we get the best of both worlds (PSA’s resale value and SGC’s turnaround times)?
When has this ever happened in the world. The customer is going to lose here — my guess is on the turnaround times.
10. Will we ever see Bowman/Topps specials again, with discounted grading fees!?!
Maybe, but not for a while. PSA will likely just continue to do their monthly piecemeal specials (‘90s baseball for $15.99, etc.).
11. Will grading fees climb once again, now that PSA’s competition is gone?
I feel like they’ve leveled off at $15. Costs have risen since PSA was doing the $12 fees 3 years ago.
Have you thought about some of these questions if PSA buys SGC? Let me know on Twitter or in my YouTube comments!
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