Collecting - Collecting Sports Memorabilia

Collecting Sports Memorabilia
Jeff Waddle

Sports Memorabilia

Every guy who’s ever collected sports cards has had that dream: rummaging through Grandpa’s attic or a box of knickknacks you bought at a yard sale, only to find a rare treasure like the 1909 Honus Wagner baseball card that fetched $2.35 million three years ago. Talk about easy money.

Thanks to the Electronic Age, the sports-memorabilia market has exploded. Even though it took a dip in the recession, it’s still a multimillion-dollar business in which a guy can get a top star’s autograph one day and sell it for $100 or more the next. Indeed, people buying and selling cards and other sports memorabilia can be found just about everywhere these days, and there’s money to be made. But given the amount of fraud, there’s also money to be lost if you’re not careful. Here’s an overview for a winning strategy.

Getting in the Game

“There’s only one wrong way to start collecting sports memorabilia, and that’s if you’re not enjoying it,” says Mark Kinman, owner of Planet Collectibles in Florence, Ky. Kinman started as a hobby collector before opening his shop 20 years ago, and he claims that the people who have made the most money were the ones who didn’t really try -- they were doing it simply because they loved it.

“I’ve now seen three generations of families come into my shop -- a father hands down a collection to his son, who hands it down to his son -- so it’s a great hobby you can do with your kids,” says Kinman.

To start collecting, Kinman advises that you first determine what you want to collect. “Is it your favorite team, favorite year, rookie cards? Once you decide, investigate and get some feedback. The great thing about the Internet is you can get some good, honest talk on discussion boards and unpaid, unbiased opinions, but make sure you don’t go to only one source.”

Timing the Market

Collecting sports memorabilia for money is a game of supply and demand, timing the market and making educated guesses. “Many collectors try to pick the next big star and then they buy their rookie cards, hoping they’ll go up when they become a star,” says Kinman. He adds that rookie cards are among the hottest collectibles in any sport, and it typically takes about three years before a player becomes an established celebrity and his card or autograph prices appreciate. Among sports cards, Kinman reports that baseball remains the most collectible, with football a close second.

Whatever you buy, Kinman suggests that you pay careful attention to market conditions and follow classic stock-market guidelines of buying low, selling high. “If you’re in it to make money, the best time to sell is when it’s hot,” he says. “Rickey Henderson’s rookie card was hot when he was trying to break Lou Brock’s stolen-base record, and once he did, it dropped in value. The same thing happened with Mark McGwire’s card after he broke the home-run record,” he says, adding that even the time of year can affect prices, like when interest is high in promising-rookie baseball cards as the season begins.

Other events such as baseball’s steroid scandal can affect value, too. Kinman saw memorabilia prices drop for fallen stars like Roger Clemens, Barry Bonds and Mark McGwire.

Value and Authenticity

To help keep up with value, collectors can subscribe to sites like Beckett.com, which offers grading services that evaluate the condition of your cards. Beckett also has an active discussion board, as do many other buy/sell sports-memorabilia sites.

The Professional Sports Authenticator also offers card-grading services, as well as authenticity verification of various sports memorabilia like autographs, game bats and old photos. Authenticity is a big issue in the sports-memorabilia market because fraud is rampant, particularly for autographs.

“Use your common sense, and put your emotions aside, and let the rational side kick in,” Kinman says about making purchases, especially online. “If this autograph is going for $500 everywhere else but some guy is selling it for $45 on eBay, you should be suspicious.”

One way to avoid getting ripped off is to insist on a Certificate of Authenticity (COA). But, Kinman warns, COAs also have been found to be frauds in some circumstances. “COAs can be copied, too, so it’s always best to buy from a reputable company that’s got a website or physical address. The COA also should have a serial number that is tied to a specific piece of memorabilia,” he says, adding that his shop has special copy-protection features embedded in its COAs. “It’s like buying electronics at a flea market and if it doesn’t work when you get home, then what are you going to do?”