CLCT going private

[Peter_Spaeth]

https://seekingalpha.com/news/363996...m-buyout-offer

[Aquarian Sports Cards]

So any vestige of accountability just flew out the window. >sigh<

[Republicaninmass]

Buying at the top!

[sportscardpete]

Those are heavyweight investors. And I’m pretty sure they’re long-term valuation is double what they paid for (as shocking as it sounds).

[Peter_Spaeth]

It will be interesting to see if they retain management.

[Rhotchkiss]

Wow. I need to digest this. I hope management gets the boot. I also hope they change their f-ing motto

[sando69]

which motto is that, ryan-
"Never get [concerned about being] cheated"?

[vintagewhitesox]

Nat Turner is a very passionate collector and cares very much about the hobby. I think this is a possitive for the hobby. He's talked frequently about ideas to make PSA operate better.
He does like Orlando though, based on recent statements and this morning's press release.

I think this is a good day for the hobby. The Board of Directors did not care about our hobby, did not take stock options as payments, and let the company languish to the point that we are waiting 6-9 months for submissions.

[iwantitiwinit]

Cohen Private Ventures, assuming they are the same Cohen Private Ventures, LLC, they are owned by Steve Cohen owner of Point72 (formerly SAC Capital) and the New York Mets. It would be surprising to me if Mr. Cohen made an investment without performing a high level of due diligence and being satisfied with the results of that process.

[Johnny630]

Nat Turner is a very smart guy. I'm looking forward to his ownership of CLCT. I think this is going to be very good.

[MattyC]

Pretty big conflict of interest, with a collector able to print his own grades at will. I guess no different than it ever was in the TPG space from the history I’ve absorbed over the years.

[MikeGarcia]

Originally Posted by MattyC

Pretty big conflict of interest, with a collector able to print his own grades at will. I guess no different than it ever was in the TPG space from the history I’ve absorbed over the years.

...SEC forbids insider grading......

..

[MattyC]

Well played, Mike!

[111gecko]

You know they wouldn’t have spent that kind of money if they didn’t know they were in the clear for any type of accountability for the altered cards in their holders...are the bad guys going to walk as well??

[irishdenny]

Originally Posted by Peter_Spaeth

https://seekingalpha.com/news/363996...m-buyout-offer

Bettar to Sell Cheap...
Than Enter a Cell Broke!

[Johnny630]

Originally Posted by 111gecko

You know they wouldn’t have spent that kind of money if they didn’t know they were in the clear for any type of accountability for the altered cards in their holders...are the bad guys going to walk as well??

Yes

[samosa4u]

Can somebody tell me how I can reach out to Nat Turner? He needs to get PSA to start grading Star Co. basketball cards again! PSA has blacklisted these cards for way too long and everybody is sick of it! Come on, Nat, do the right thing!

[CobbSpikedMe]

Originally Posted by samosa4u

Can somebody tell me how I can reach out to Nat Turner?

nat.turner@ gmail.com?



.

[Lorewalker]

Originally Posted by MattyC

Pretty big conflict of interest, with a collector able to print his own grades at will. I guess no different than it ever was in the TPG space from the history I’ve absorbed over the years.

I think ya meant observed but absorbed is more fitting. The whole collecting community has absorbed it big time. Millions of bad slabs. Never gonna change.

[Rich Klein]

We're discussing the world today; I will also say, I'm more fascinated by what 2023 will bring because I believe about 2 years in will be when some major personnel changes may just occur. That is just my opinion, nothing more, nothing less.

[steve B]

Originally Posted by MattyC

Pretty big conflict of interest, with a collector able to print his own grades at will. I guess no different than it ever was in the TPG space from the history I’ve absorbed over the years.

But there's the odd catch 22 in all this.

Everyone wants the cards graded by people who know about the cards..
But not by anyone that collects them..

That really shrinks the pool of potential graders.

[rats60]

Originally Posted by steve B

But there's the odd catch 22 in all this.

Everyone wants the cards graded by people who know about the cards..
But not by anyone that collects them..

That really shrinks the pool of potential graders.

Why would we want a collector to grade our cards? We would never be able to get our reprint Cracker Jacks graded as authentic.

Nat Turner is well know collector of modern basketball cards. He has been trying to buy PSA for a while with the intention of improving the grading industry. Shouldn't we give him a chance before implying that he is unethical without any evidence?

[slightlyrounded]

Originally Posted by rats60

Why would we want a collector to grade our cards? We would never be able to get our reprint Cracker Jacks graded as authentic.

Nat Turner is well know collector of modern basketball cards. He has been trying to buy PSA for a while with the intention of improving the grading industry. Shouldn't we give him a chance before implying that he is unethical without any evidence?

This.

I can't think of a more promising turn for PSA than having Nat Turner involved: A young, passionate, tech-savvy collector with an equal respect for modern and vintage sides of the hobby. Also someone who has been vocal about PSA's shortcomings over the years.

Unfortunately, there's are a lot of legacy issues that the new owners will be forced to navigate and hopefully they'll stay accountable to the community while doing so - It's all we can ask for.

[Bobbycee]

HEY!! Another Nat Turner rebellion...

[hcv123]

While I believe "things can always get worse", I believe there is a lot more space to improve than to get worse! A passionate collector - a successful entrepreneurial investment team! I REALLY like the start of this! So much potential with the right changes! If done right - they will be light years ahead of the other grading companies!

[Rich Klein]

According to Darren Rovell's story: The average age of the current board is 73. Nat Truner is 34. I suspect the younger people who will be joining the board will be more amenable to whatever technological changes will occur.

https://www.actionnetwork.com/news/p...n=DarrenRovell

Rich

[Aquarian Sports Cards]

Originally Posted by Rich Klein

According to Darren Rovell's story: The average age of the current board is 73. Nat Truner is 34. I suspect the younger people who will be joining the board will be more amenable to whatever technological changes will occur.

https://www.actionnetwork.com/news/p...n=DarrenRovell

Rich

If the company is going private there need be no board.

[jbsports33]

I wish him the best and PSA, there is some conflict of interest with this. Hoping he will make the hobby better anyways, time will tell how this will go. At least this is interesting news for the hobby and something to talk about. We all know we need a little cardboard talk right now.

Jimmy

[Peter_Spaeth]

Originally Posted by slightlyrounded

This.

I can't think of a more promising turn for PSA than having Nat Turner involved: A young, passionate, tech-savvy collector with an equal respect for modern and vintage sides of the hobby. Also someone who has been vocal about PSA's shortcomings over the years.

Unfortunately, there's are a lot of legacy issues that the new owners will be forced to navigate and hopefully they'll stay accountable to the community while doing so - It's all we can ask for.

Where was he vocal about PSA's shortcomings and what did he say?

[BRoberts]

Originally Posted by Aquarian Sports Cards

If the company is going private there need be no board.

Lol. Many, many private companies have boards of directors. Especially ones with the value of a PSA.

[Rich Klein]

Originally Posted by Aquarian Sports Cards

If the company is going private there need be no board.

Sometimes private companies do have advisory boards, so I bet there will be more help on this.

[todeen]

Originally Posted by Bobbycee

HEY!! Another Nat Turner rebellion...

+1. Nice historical joke

Sent from my SAMSUNG-SM-G930A using Tapatalk

[AGuinness]

Originally Posted by 111gecko

You know they wouldn’t have spent that kind of money if they didn’t know they were in the clear for any type of accountability for the altered cards in their holders...are the bad guys going to walk as well??

Haven't they done so already? Again and again and again... for every Mastro, how many other shady people never get brought to justice? I'd guess a lot.

[joshuanip]

At first blush, their steady cash flow business and upside to market share reversion makes it a great candidate to stuff with mezzanine debt...sell off the higher tranches and retain the equity for a reipo down the road.

Financial engineering cookbook to meet hurdles and get that carry...

[steve B]

Originally Posted by rats60

Why would we want a collector to grade our cards? We would never be able to get our reprint Cracker Jacks graded as authentic.

Nat Turner is well know collector of modern basketball cards. He has been trying to buy PSA for a while with the intention of improving the grading industry. Shouldn't we give him a chance before implying that he is unethical without any evidence?

I was more replying to Mattys post.

I think it would be an additional challenge to have people totally unfamiliar with cards do the grading. A lot of the mainstream cards could be taught, but if you get outside the very common stuff you need an expert.

I see many people say that's a conflict, but it's pretty much unavoidable. In my other hobbies, the expertisers are almost always collectors or dealers. And they all get items certified if not graded. (Not much point grading a unique item) The companies generally just make sure the submitter isn't the one looking at it.
It can be difficult in some small niches. I have one thing that I haven't had expertised, and the best experts in that very narrow area already know of it and whose it is from the article about it.

[BuzzD]

Originally Posted by Peter_Spaeth

Where was he vocal about PSA's shortcomings and what did he say?

It would be no surprise if a significant dollar amount of the sale price was set aside in escrow to fund future liabilities and then released over time, say 5-10 yrs.

[Aquarian Sports Cards]

Originally Posted by BRoberts

Lol. Many, many private companies have boards of directors. Especially ones with the value of a PSA.

Originally Posted by Rich Klein

Sometimes private companies do have advisory boards, so I bet there will be more help on this.

Not seeing how any of this contradicts what I said. A private company is not required to have a board. Yes many do have one, but it is not a legal requirement.

[Peter_Spaeth]

Originally Posted by BuzzD

It would be no surprise if a significant dollar amount of the sale price was set aside in escrow to fund future liabilities and then released over time, say 5-10 yrs.

In the purchase of a publicly held company? I doubt it.

[swarmee]

So, what happens to the Grade Guarantee? Still in force? Will it still apply to cards graded before the buyout?

[Rich Klein]

Dr. Beckett who kind of, sort of, has experience in running and then selling a company had some thoughts on his podcast this AM. Interesting perspective from someone who had been there. Plus about a week ago he ran a podcast with the person who was Beckett's CEO after he sold the company. I'd suggest listening to both. Not totally similar but some crossover

https://beckettinsights.podbean.com/e/356-psa-buyout/

[sportscardpete]

Originally Posted by joshuanip

At first blush, their steady cash flow business and upside to market share reversion makes it a great candidate to stuff with mezzanine debt...sell off the higher tranches and retain the equity for a reipo down the road.

Financial engineering cookbook to meet hurdles and get that carry...

Oh, this will definitely be re-IPO'd. 3, 5 years? Think what they are working on needs to be done in a private setting. They'll see value from it in a few years.

[BRoberts]

Originally Posted by Aquarian Sports Cards

If the company is going private there need be no board is required.

Originally Posted by Aquarian Sports Cards

Not seeing how any of this contradicts what I said. A private company is not required to have a board. Yes many do have one, but it is not a legal requirement.

Fixed your post.

[swarmee]

Thinking about the vote of confidence in Joe Orlando... what were they going to say? We're buying the company and firing the top brass? Not bloody likely. Would make a whole lot of negative news for no reason.

Doesn't mean they think he's a long term fix. But he's a necessary evil during the transition time. Think of the new ownership group as the GM of a football team who keeps getting asked when the head coach is getting fired; it will happen in due time.

[Peter_Spaeth]

Originally Posted by swarmee

Thinking about the vote of confidence in Joe Orlando... what were they going to say? We're buying the company and firing the top brass? Not bloody likely. Would make a whole lot of negative news for no reason.

Doesn't mean they think he's a long term fix. But he's a necessary evil during the transition time. Think of the new ownership group as the GM of a football team who keeps getting asked when the head coach is getting fired; it will happen in due time.

Some of us dislike him because we think he favors certain submitters, doesn't do enough to stop doctored cards from getting through, and presides over a culture where dissent and questions are not tolerated. But if you're looking at this purely as a matter of dollars and cents, it's hard to deny that Joe has done a great job growing the PSA brand. The record revenues and backlogs attest to that, as does the fact that the scandal hasn't touched PSA. I'm not sure I would be thinking about replacing him.

[Oscar_Stanage]

Given Nat's background in technology integration, I expect his vision includes greatly reducing the human discretion element in card grading.

Steve Cohen's involvement tells me that he possibly sees an angle for collectibles as an asset class...

Investment/Change in this business is necessary and welcome.

and, nice to know some heavy hitters do not believe we are in a bubble.

[Peter_Spaeth]

In a stunning development, the merger agreement has been amended to increase the price from $75 per share to $92. Keep in mind CLCT traded as low as $15 or so earlier this year. What scandal?

[sportscardpete]

Originally Posted by Peter_Spaeth

In a stunning development, the merger agreement has been amended to increase the price from $75 per share to $92. Keep in mind CLCT traded as low as $15 or so earlier this year. What scandal?

They got a lot of push back on the $75 price. People were not happy.

[Vintageismygame]

Originally Posted by Peter_Spaeth

In a stunning development, the merger agreement has been amended to increase the price from $75 per share to $92. Keep in mind CLCT traded as low as $15 or so earlier this year. What scandal?

That price jump from $75 to $92 just netted me another $46,000.00. Thanks Nat!

[Johnny630]

It’s all about the Benjamin’s.....

[Steve D]

CU's sale has apparently been finalized.

Interesting to note that one of the investors in CU/PSA, is The Chernin Group, who also just bought Goldin Auctions. So now, they're going to be involved in running both the card grader, and the card seller/auctioneer. Conflict of Interest?????

Steve


https://www.sportscollectorsdaily.co...R9JM4oU_e_5ao8