The sports card industry is on the upswing since the onset of the Coronavirus pandemic. But now that things are opening up, the hobby is still trending up. Several factors contribute to the growing interest. As of right now, Panini can be credit for the sports card boom.
First, teenagers who fueled the trend decades ago are now adults with buying power. That sense of nostalgia entices them to return to collecting. Second, they are not doing it just for fun, but for investment as well. Card prices skyrocketed that flipping cards quickly can turn into a quick profit.
But for instance, when these collectors pull out a super rare insert, they keep it in good condition until a buyer offers the right price. Finally, trading card companies play a vital role in satisfying the demand from adults and teens alike. After all, sports cards are still the most budget-friendly of all memorabilia.
That said, Panini is in a great position to keep the fire burning soon. Their strategy will help make or break the industry’s direction in the next decade. For now, they are setting some benchmarks that are making the practice trend up.
It pays to be exclusive
Being the sole producer of a product in high demand will pay dividends. That’s a privilege that Panini has been experiencing since 2009 when the National Basketball Association granted them an exclusive license to develop trading cards.
As per Rich Mueller of Sports Collectors Daily, the original deal lasted until 2012. But the NBA extended Panini’s license for five more years to 2017. Recently, Panini got another extension which gives them exclusive rights until 2022. While Upper Deck still has a lucrative deal with Michael Jordan and LeBron James, it’s limited to other memorabilia. Panini has a stranglehold of the NBA trading card market.
The massive opportunity is fueled by young stars like Jayson Tatum, Giannis Antetokounmpo, LaMelo Ball, and Luka Doncic. The market for other up-and-coming players like Trae Young, Devin Booker, and Donovan Mitchell are also trending up due to their tremendous performances in the NBA Playoffs.
But aside from the NBA, Panini also has exclusive rights for the NFL, the FIFA World Cup, and 300 other colleges. The NFL alone is an enormous market under their wing. They may not be as expensive as MLB or NBA cards, but they still pay off profit-wise.
The value of scarcity
Panini did not stop being the sole producer of trading cards. They did a fantastic job with their inserts to ensure that only the special ones are rare, making the gold rush more exciting and financially rewarding. There’s only one Panini National Treasures Logoman Autograph of Doncic, and the scarcity drove its price up to $4.6 million.
The same goes for Giannis Antetokounmpo’s version of the card, the only one globally, which had a $1.857 million tag. Aside from the Logoman Autograph, there are other Panini sports cards worth trading. The Kaboom cards were an innovative set when they first came out. But its yearly production hurts its value.
The Elites Series Class Masters, a throwback to card designs of the 1990s while sporting a monochrome look, makes it an exciting find. Then there’s the Spectra Color Blast which is arguably the best-looking insert that Panini has as of late, and you can only find one in every seven to ten cases, as per Blowout Forums.
With Panini enjoying the monopoly of the trading card industry, expect more special sets from them in the future. There’s no stopping them from creating better sets that will match the player’s rising popularity. When they keep collectors intrigued, the sports card market will continue to prosper.
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