What would happen if PSA went out of business?

[PowderedH2O]

The thought crossed my mind today on how so many graded cards (PSA specifically) have values that are closely tied to the registry. What would happen to values if PSA went bankrupt and the registry were to cease to exist? Obviously, there would still be millions of their graded cards out there, so personally collectors would still be able to collect them, but would values decline significantly if there was no registry competition for these graded examples?

[bxb]

Yes.

[1952boyntoncollector]

And what if baseball stopped being played...

[Peter_Spaeth]

It would be interesting to know what percentage of revenues PSA derives from various categories: vintage never submitted before, crackouts/bumps, modern, the current year's cards, and of course all the other stuff they authenticate. I wouldn't assume the business model is indefinitely sustainable although they seem very adept at generating demand.

[brass_rat]

Originally Posted by Peter_Spaeth

It would be interesting to know what percentage of revenues PSA derives from various categories: vintage never submitted before, crackouts/bumps, modern, the current year's cards, and of course all the other stuff they authenticate. I wouldn't assume the business model is indefinitely sustainable although they seem very adept at generating demand.

They don't specify categories quite as fine as you mention, but the CLCT 10-K and 10-Q filings have some pretty interesting information in them, particularly regarding their revenue breakdowns. The most recent quarterly report doesn't have any new information, so I'd recommend just reading the annual report:

http://investors.collectors.com/secf...32&CIK=1089143

(all reports):
http://investors.collectors.com/sec.cfm?view=all

Cheers,
Steve

[Republicaninmass]

Prices would go up, as they wouldn't be making anymore

[vintagetoppsguy]

Originally Posted by 1952boyntoncollector

And what if baseball stopped being played...

What a silly response.

I'm not saying it's going to happen (it's very unlikely), but to think it couldn't happen it quite ridiculous.

The folks at Montgomery Wards probably thought the same thing at one point. It had only been in business for 125+ years

[AGuinness]

My initial hunch is that when it comes to the registry, there'd be enough of a market that some third party could start a new registry for PSA cards (or perhaps purchase the current one and operate it).

[111gecko]

There are many attorneys here so hopefully one of them will comment. I would assume in the case of a bk, the registry could be an asset to be sold if it was a liquidation bk. Certainly there is value in continuing the registry and advertisers would sill invest in space once a third party was able to operate the new site.

Building off the OP question: what if PSA was the only TPG in the market. Would this affect the value of PSA cards and would grading still be as popular?

[1952boyntoncollector]

Originally Posted by vintagetoppsguy

What a silly response.

I'm not saying it's going to happen (it's very unlikely), but to think it couldn't happen it quite ridiculous.

The folks at Montgomery Wards probably thought the same thing at one point. It had only been in business for 125+ years

right, 125 years is long enough for PSA to not worry about if PSA is going out of business.... you starting a thread on things that are by your own admission, '..very unlikely' to happen, may garner some responses you don't like..

baseball can stop as well, that's unlikely and saying it couldn't happen is quite ridiculous as well...in 125 years there may not be baseball.............people still pay for GAI holders by the way in the 1000s....and they are out of business....there are other companies that took over the slack...which would happen if PSA was done

once all sportscards stop being produced 'its unlikely to happen' then PSA would be in trouble..if baseball stopped, baseball cards would stop being prodcued as well you would think..

your response saying my response is silly is just...silly......... the question deserves the response.


So lets everyone start threads on things thats unlikely to happen or on what would happen 125 years from now..

[mattsey9]

Montgomery Ward or Wards. Either are correct. Saying Montgomery Wards around corporate could have resulted in a $1.00 fine once upon a time.



Mike - who worked for Wards as an electronics buyer up until the plug got pulled by GE and still misses it dearly.

Originally Posted by vintagetoppsguy

What a silly response.

I'm not saying it's going to happen (it's very unlikely), but to think it couldn't happen it quite ridiculous.

The folks at Montgomery Wards probably thought the same thing at one point. It had only been in business for 125+ years

[Mountaineer1999]

Originally Posted by 1952boyntoncollector

And what if baseball stopped being played...

The OP concern is an actual possibility, this not so much.

To the question, I think Yes. The prices would come down.

[1952boyntoncollector]

Originally Posted by Mountaineer1999

The OP concern is an actual possibility, this not so much.

To the question, I think Yes. The prices would come down.

The OP said on the issue you said is an 'actual possibility' is very unlikely and gave a scenario that took 125 years to occur so yeah its a an 'actual possibility' that he says is unlikely and backed it up with something that took 125 years.......I think people have said cards can disintergrate if given enough time.....I don't think my comment of baseball not occurring can be said will never happen ever either...given enough time.. a lot of things can change in 125 years..the steroid scandal really hurt the game, whos to say another huge scandal doesn't occur plus other things can happen that could kill the game that no one can envision now..

[PowderedH2O]

Originally Posted by 1952boyntoncollector

The OP said on the issue you said is an 'actual possibility' is very unlikely and gave a scenario that took 125 years to occur so yeah its a an 'actual possibility' that he says is unlikely and backed it up with something that took 125 years.......I think people have said cards can disintergrate if given enough time.....I don't think my comment of baseball not occurring can be said will never happen ever either...given enough time.. a lot of things can change in 125 years..the steroid scandal really hurt the game, whos to say another huge scandal doesn't occur plus other things can happen that could kill the game that no one can envision now..

Actually, I didn't use any examples. You are confusing me (the OP) with someone else. That being said, how about a more recent example? Blockbuster Video. Did anyone see their demise coming in the mid 1990's? They were booming! Today, they are gone. Mismanagement happens. What about a scandal? Businesses close for many reasons. PSA is not foolproof. Likely soon? No. But, certainly not far fetched.

[chipperhank44]

Yes, prices would drop, but just to SGC & BVG levels. People will always fight over high grade examples. They just fight harder when there's a scoreboard.

[frankbmd]

Originally Posted by chipperhank44

Yes, prices would drop, but just to SGC & BVG levels. People will always fight over high grade examples. They just fight harder when there's a scoreboard.

Please report any pricing irregularities attributed to the Monster Number scoreboard.

[BeanTown]

"IF" PSA went out then they would sell off their assets or their assets would be sold through a bankruptcy court. Agreed the registry is valuable and because it is set up like a scoreboard for collectors, I do not see that going away anytime soon,no matter who owns it.

As long as there is a scoreboard (registry) I do not see prices dropping. I've been collecting cards since the "Dead Sea" was only sick. I have never submitted a card to be graded. The only time my cards get graded is when they are consigned to an auction house and they send them off.

The last thing any collector wants to do is pay good money to have all their cards graded and then when the time comes to sell them, that grading company might not be the best one to realize the best gain. Just think if people rushed out to use "PRO" 15 years ago.

Sure PSA, SGC,and Beckett are the main ones in our hobby now, but who knows what the future will be. There are some big coin grading companies out there and what if they want to come into the card market! They hire away the best graders and take it to a higher level.

Best way to maximize profits is to have your cards graded by the best company for that issue at that time. So for now I will keep the cards in Mylar sleeves and then in top holders. Last thing I ever want to do is to break cards out of graded holders to cross them over.

[T205 GB]

What would happen if PSA went out of business?

More cards would be graded accurately!!

[cammb]

Originally Posted by t205 gb

what would happen if psa went out of business?

more cards would be graded accurately!!

lol how true!!