When my wife and I moved into our new home last year, she asked if she could throw out my (numerous) boxes of sports cards and memorabilia, carefully collected and stored over the past four decades. “No,” was my reply. “Why?” she asked. “Because,” I responded, “each of those boxes is worth a year of mortgage payments, and they’re appreciating every day.” Suffice it to say, she hasn’t raised the issue again since. True story.
A Growing Investment Market
Collecting sports memorabilia can be highly lucrative. Heritage Auctions recently set an auction record of $24.12 million with the sale of Babe Ruth’s road gray jersey that he wore when famously calling his home run shot during game 3 of the 1932 World Series. For any reader who isn’t a sports aficionado, this is one of the most iconic moments in baseball’s lengthy and robust history, alongside the late Willie Mays’ incredible over-the-shoulder catch, and the introduction of Jackie Robinson during his first game as a member of the Brooklyn Dodgers.
This sale amount eclipsed a 1952 Topps Mickey Mantle baseball card, revered as the “Mona Lisa” among collectors, that held the prior record after fetching $12.6 million two years ago. Other noteworthy auction results are Michael Jordan’s 1998 NBA Finals Chicago Bulls jersey at $10.1 million, and Diego Maradona’s 1986 “Hand of God” jersey at $9.3 million. For those readers who don’t follow football aka soccer, you might be asking yourself, “Diego who?” Does it matter? $9.3 million for a jersey!
The market for sports memorabilia is poised for significant growth. Consulting group Market Decipher projects the category will soar from $26.1 billion in 2021 to $227.2 billion by 2032. Lofty expectations, but so was Babe Ruth’s homer.
A Phoenix From The Ashes
Until the 1970s, sports cards were not generally viewed as investments, which is why vintage items in excellent condition can command astronomical prices today. By the mid-1980s, prices for contemporary cards were rising, and they were widely seen as sound - if speculative - long-term investments. Manufacturers responded by increasing production in the late 1980s and early 1990s, leading to market saturation and a subsequent price crash.
Card makers have since devised novel strategies to maintain prices, often offering limited 1 of 1, 1 of 20, 1 of 100, et cetera, editions. Modern day sports cards may include a scrap of a game-worn jersey, baseball bat, football, and countless other mementos that drive scarcity and therefore garner higher perceived value in the eyes of collectors.
As a result, the sports card market rebounded and flourished, especially during the Covid-19 pandemic when canceled sporting events and surplus cash from stimulus checks led fans to invest in collectibles. However, there was a noticeable decline last year; it is possible that higher interest rates made high-yield savings accounts and similar vehicles increasingly attractive, particularly for more conservative investors.
And yet, this downturn could represent an opportune moment to enter the market for many. Deciding what to buy and how much to spend can be challenging, given that collectibles don’t generate cash flow, earnings, dividends, or intrinsic value. As my wife exclaimed, “That piece of cardboard is worth what?!”
GOATS Can Make Hay
“Buy the best of the best and the GOATs” (greatest of all time),” advises Chris Ivy, director of Heritage’s sports auctions, noting “exponential growth” in the prices of items linked to legends such as Babe Ruth, Mickey Mantle, Ty Cobb, Wayne Gretzky, Michael Jordan, Tiger Woods, Muhammad Ali, and Tom Brady. “Future generations will always know who Ruth and Jordan are.”
Howard Epstein, a Charlotte, N.C.-based wealth management advisor and lifelong sports memorabilia expert, agrees. “Buy the best you can afford” and “buy what you like,” he suggests. Besides the names Ivy mentioned, Epstein recommends items related to Lou Gehrig, Willie Mays, Hank Aaron, Jackie Robinson, Roberto Clemente, Joe Namath, and Johnny Unitas.
“It’s best to stick with retired or deceased players” in top grades and older, game-used items, Epstein advises. Grading services like Professional Sports Authenticator (PSA) and Beckett evaluate collectibles for authenticity and assign a numerical grade from 1 to 10 to indicate their condition. Just as location is crucial in real estate, condition is key for most collectibles. A 1976 Topps Walter Payton rookie card with a PSA 10 grade sold for $41,000 in May 2024, while a PSA 1 graded card of identical vintage can be purchased for under $150.
“You can speculate on newer or current athletes; however, remember it is speculating,” Epstein warns. “They could have a career-ending injury or worse.” Your author is currently fighting back tears for all the money wasted when buying signed Julio Urias and Walker Buehler rookie cards. “Speculators typically buy items of highly touted young athletes, which can be expensive given their limited records. They also gamble on cheap collectibles of lesser-known athletes they believe will become stars. Speculators often lose money because most athletes don’t achieve long-term stardom,” continues Epstein.
Unlike spectators and investors, collectors usually buy items they love without necessarily expecting a profit (though they often do). This approach is generally considered wise because, even if an item loses value, the owner still enjoys it. Collectors often keep items - especially those related to a favorite player, team or cherished memory - throughout their lives. “Baseball seems to still be king, with basketball close behind, then football,” Epstein notes, highlighting that game-used item values, particularly older ones, are rising the most.
When asked what he would recommend for an investor with a $1 million budget, Epstein responded, “Buy a game-used jersey of a GOAT, the best you can find, even if it is a private sale and not an auction.” For a $100,000 budget, he suggests, “Same as above, but you may have to step down a little to Ted Williams, Stan Musial, Ernie Banks, etc.” For a $10,000 budget, he advised, “buying the best-graded vintage card of a GOAT that you can find.” For a $1,000 investment, he quips, “Keep your money.”
Or, spend it like a collector and purchase something you enjoy regardless of its potential for appreciation.
Access Granted
What was unknown to Epstein at the time of his remarks is that aShareX (Asset Share Exchange) offers a solution for those collectors who fall into the latter bucket of $1,000 investors but who want to participate in the potential financial upside of a GOAT asset.
aShareX, the world’s first and only fractional auction platform, empowers fractional bidders to compete alongside traditional 100% bidders for ownership of high-value alternative assets like collectibles, fine art, precious gems, automobiles, real estate, and more - without the million dollar price tag.
When fractional bidders win an aShareX auction, they receive shares representing their proportionate ownership of the asset via an SEC-qualified share offering. aShareX stores and maintains the asset, provides shareholders with annual 3rd party appraisals so they know what their investment is worth, and offers shareholders the right to vote each year whether they want to sell the asset.
Finally, sports fans, enthusiasts, and investors alike can participate in this unique and thriving investment category. For more information, and to register for upcoming aShareX auctions, visit https://www.asharex.com.
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