Collectors (PSA) Acquired SGC

RayBShotz · #1 02-29-2024, 08:10 AM

Quote:

Originally Posted by wondo

It will be a couple of years before there is a noticeable change. I cannot fathom that morale at SGC has not been negatively impacted unless they shared the pie. Couple of things could happen:

1. Both entities are allowed to operate independently.
2. Collectors migrates vintage to SGC while keeping the PSA brand for newer cards.
3. PSA swallows SGC, maybe by offering a discounted crossover rate.
4. SGC becomes the "BVG" of the Collectors group.
5. SGC cards are allowed in the Registry.

Possibilities are endless!

I believe when all is said and done, #3 will be the most likely outcome.

Most acquisitions start with IT and Finance absorption and move on from there. Over time all things will migrate as PSA works down process inventory at SGC and then swallows it whole.
SGC will be a fond memory 24-36 months after a completed deal; maybe sooner.

The Detroit Collector · #2 02-29-2024, 08:21 AM

Crazy news. Never would have expected this.

I can't believe there will be two separate slabs continuing long term. Eventually SGC slabs will become PSA. A crossover charge will be added.

I dont see how SGC slabs will be included in the registry. The regisity will show both PSA and SGC separately? I don't think that will work. It's probably going to be same business as usual, if you want to go into the PSA registry, you will need to crossover.

In the end this gives PSA a huge amount of influence in the hobby. Pricing, grading times.

SGC will grade some cards that PSA wont. Makes me question how that will work moving forward.

gunboat82 · #3 02-29-2024, 08:38 AM

Quote:

Originally Posted by The Detroit Collector

Crazy news. Never would have expected this.

I can't believe there will be two separate slabs continuing long term. Eventually SGC slabs will become PSA. A crossover charge will be added.

I dont see how SGC slabs will be included in the registry. The regisity will show both PSA and SGC separately? I don't think that will work. It's probably going to be same business as usual, if you want to go into the PSA registry, you will need to crossover.

In the end this gives PSA a huge amount of influence in the hobby. Pricing, grading times.

SGC will grade some cards that PSA wont. Makes me question how that will work moving forward.

Collectors Universe could do a big marketing push that involves a special rate for SGC-to-PSA crossovers, with the idea that PSA will house the industry's only registry and cater to "true hobbyists" like the YouTube bros who track cards with stock tickers. They could spin off SGC into a BCCG-like club, where dinosaurs like me pay $99.95 a year for the privilege of continuing to use SGC.

The Detroit Collector · #4 02-29-2024, 08:46 AM

Quote:

Originally Posted by gunboat82

Collectors Universe could do a big marketing push that involves a special rate for SGC-to-PSA crossovers, with the idea that PSA will house the industry's only registry and cater to "true hobbyists" like the YouTube bros who track cards with stock tickers. They could spin off SGC into a BCCG-like club, where dinosaurs like me pay $99.95 a year for the privilege of continuing to use SGC.

Unfortunately, from a business standpoint I agree with you, this is what will happen.

parkplace33 · #5 02-29-2024, 08:56 AM

I had some talks with a few collectors friends this morning. Many are sadden with this decision. And I don't believe PSA will cross SGC cards at the current SGC grade.

I like SGC cards, but I am now very hesitant to buy them right now until I hear additional information about this buyout. It will be interesting to see what impact this has on SGC cards in the future.

Leon · #6 02-29-2024, 08:58 AM

Unless Nat starts grading cards himself, I think this is a postive for the hobby. I think CGC will move up too...
.

The Detroit Collector · #7 02-29-2024, 09:07 AM

Quote:

Originally Posted by Leon

Unless Nat starts grading cards himself, I think this is a postive for the hobby. I think CGC will move up too...
.

Respectfully I disagree.
Competition is good for the customers and collectors.
It allows prices to be low, grading times to be faster. It allows difference in slabs styles and diversity.
As some mentioned and I think it's a great point, I doubt PSA will crossover the same grade from SGC.

BobbyStrawberry · #8 02-29-2024, 09:45 AM

Quote:

Originally Posted by Leon

Unless Nat starts grading cards himself, I think this is a postive for the hobby. I think CGC will move up too...
.

Why do you think that, Leon?

My first reaction was the opposite...

Gorditadogg · #9 02-29-2024, 11:42 AM

Quote:

Originally Posted by Leon

Unless Nat starts grading cards himself, I think this is a postive for the hobby. I think CGC will move up too...

.

Yes. I was surprised that CGC grades more cards than SGC currently.

Sent from my SM-S906U using Tapatalk

Johnny630 · #10 02-29-2024, 09:01 AM

Quote:

Originally Posted by parkplace33

I had some talks with a few collector friends this morning. Many are saddened by this decision. And I don't believe PSA will cross SGC cards at the current SGC grade.

I like SGC cards, but I am very hesitant to buy them right now until I hear additional information about this buyout. It will be interesting to see what impact this has on SGC cards in the future.

Great Point….. however this morning after speaking with several prominent collectors and owners of major SGC Cards, aren’t you responsible for a business when you acquire it aren’t you going to be responsible for their grades and their standards? I was told by these fellow collectors they believe lawsuits are going to occur if they do not back up the product that they bought. What are your thoughts on that?

My question to you is will you and the hobby as a whole still submit going forward to SGC?

If SGC continues to grade the high volume of cards monthly that they have been if people still have confidence and send them cards to grade, they will stay separate. If that drops off and drops off drastically, I believe PSA will take over the full grading aspect of SGC, what are your thoughts on that?

RayBShotz · #11 02-29-2024, 09:07 AM

With this news I expect by May submissions to SGC to be down 30-50%.
Who would submit now after hearing this?

jjbond · #12 03-01-2024, 11:08 AM

I would assume that PSA looked at SGC's #s, and felt that they were on track to take a larger % of the market. Financially, it would make sense then to buy out SGC and close them down, if the cost of doing so was less than the market share loss they were projecting.

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