On the Saturday before Thanksgiving, thousands gathered for the Chicago Sports Spectacular, a major event in the world of sports trading cards. Held in a convention center near O’Hare Airport and reminiscent of a pre-eBay era rummage sale but with much higher stakes, the show featured over 400 dealers. Collectors, having paid a $15 entry fee, navigated through the maze of tables, searching for treasures like signed Mickey Mantle baseballs and Michael Jordan rookie cards.
The vibrant atmosphere was abuzz with dealers discussing business trends and marveling at the rapid shift in young collectors’ interests. This analog tradition has been the backbone of the multibillion-dollar sports collectibles industry for decades. However, it faces potential upheaval from Fanatics, a dominant force in sports merchandise, aiming to revolutionize the collectibles market.
Fanatics, known for its league deals and replica jerseys, has branched into the trading card arena. It acquired Topps, the iconic trading card maker, for approximately $500 million, positioning itself as a major player in an industry valued at around $44 billion. Fanatics’ aggressive strategy includes signing exclusivity deals with sports stars like Tom Brady and LeBron James, and partnerships with Major League Baseball and the baseball players’ union.
This shift has caused unease among traditionalists in the trading card world. Fanatics’ approach mirrors its tactics in sports apparel: acquiring key industry components, leveraging relationships with athletes and leagues, and pushing aside competitors. The company has also ventured into direct sales to hobby shops and online marketplaces, aiming to streamline the supply chain and elevate the quality and reliability of products. Many are concerned about potential price increases, as well as the monopoly of the trading card market.
Despite the concerns, Fanatics’ entry is seen by some, like card appraiser Michael Osacky, as a positive step towards innovation and rejuvenation in the hobby. The company’s ambitious plans suggest a transformative future for sports collectibles, one that balances traditional practices with modern business strategies, potentially reshaping the industry for generations to come.