Back in the earlier part of this year, thanks to some drastic mismanagement of the company’s relationship with NFL properties, Upper Deck was left without a license to produce NFL cards. Since that time, they have released two sets, both NCAA themed, with moderate success. In addition to the two sets that were already released, we were expecting AT LEAST two more sets. One of those sets was the collector favorite SP Authentic, the other was Ultimate Collection. As of today, per a post on Blowout’s forum, Ultimate Collection has been cancelled.
The official statement reads as follows:
We have heard from football collectors everywhere that they would still like to see the Upper Deck brands they love be released each year. At the same time, we are well aware of the difficulties that the current market is facing and continues to fight through. We understand and can appreciate those real challenges, and feel that it is our duty as a manufacturer to react to those challenges when possible. Therefore, we have made the decision to cancel 2010 Ultimate Collection Football at this time. In the meantime, we will be focusing our efforts on making 2010 SP Authentic Football all that it can be and more. Thank you in advance for your understanding, and your support of Upper Deck products.
I think that after reading this news, things are not looking good over in Carlsbad. Its obvious that UD was having issues making ends meet as it was, but to have to cancel a product, something else is going on. They were able to get out both Ultimate Collection basketball and their Hockey products as planned, so its interesting that they have chosen to ditch this product over some of the others that look to be more expendable.
I also believe that many people are still looking to see what SPA is going to contain, lets hope that they have the opportunity to get it out in a timely manner. From what I saw back in the previews, it looks to be one of the better designed products of the year, despite the fact that there will be no jerseys with NFL logos on them.
If I were Topps or Panini, I would definitely consider what could be done with the brands and exclusive signers that are available if Upper Deck were to be bought out:
Exquisite – the granddaddy of all super high end, best product in each sport it was released if you also count the Cup
SP Authentic – best middle cost product in the history of the hobby
Ultimate Collection – A bit outdated, but still viable as we saw last year
LeBron James – EXTREMELY valuable for Panini’s Basketball license as he and Jordan are the two most valuable players in the game, period.
Michael Jordan – See above
Kevin Durant – See above, minus five years
Tiger Woods – Still a huge draw despite scandals
Derek Jeter – EXTREMELY valuable for Topps’ exclusive license
Ken Griffey Jr – See above
When you also consider that Upper Deck’s design team comes with the brand itself, maybe that is also a draw for how poorly Panini products have been looking since their acquisition of an American distribution method. Im not sure they understood how much Exquisite style products factored into the success of their NBA license, and from what we have seen, they are still fumbling through their calendar with rehashed football and baseball products. Think of what it would mean to the hobby to be able to have another licensed Exquisite set, as many people live for the ridiculous cards that come out of it every year. The only issue I could see is a company like Panini taking the dynasty built by sets like SPA and replacing it with more shit like 2010 Limited Football or 2010 Rookies and Stars. It would be a disgrace.
At the very minimum, I think its obvious that Upper Deck needs to launch a multisport autograph based product with all their brand spokesman. Its time to cash in the chips and put it all on black. Think about the kind of content that could be included in a product like this. Its rare that this kind of star power could be included in one spot, but it would need to be done right. A last hurrah of sorts? SP Authentic: Ultimate Exquisite Edition?
Overall, I hope Upper Deck continues to fight another day, but that may not be in the cards.
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Man, I’d love to have the money to buy UD and improve on what is already the pinnacle of the industry.
I hope upper deck can get their act together.
It would be a truly sad day if Upper Deck went out of business. Please understand, the people at Upper Deck are not dumb; however, like many businesses, they were not prepared for this long recession.
Businesses that are surviving, are doing so by cutting costs. Professional leagues & players want more money while the consumer refuses to buy products at normal release prices. Don’t expect Topps or Panini to increase their costs if their competition is reduced.
High end products have never been a profitable money maker for manufacturers. Today, the everyday consumer can buy most of these products on line at lower prices than at costs direct from the manufacturer. Until demand and sales increase, expect less from the manufacturers.
There is an answer, though it will not happen anytime soon. There is a way to give the consumer quality products and insure the manufacturers the profits they need to stay in business. Who, can best afford to invest in today’s poor retail market and wait for better economic times? The professional leagues, rather than sell their licenses could take charge of production and sales of sports cards and memorabilia.
The leagues already sell memorabilia on their web-site, why not cards. They could pay the card manufacturers to produce the products to their requirements & specifications and control distribution, costs and profits; much like they control jersey & memorabilia sales. They could also share profits with their biggest stars, legends players associations. This would make everyone, including the consumer, a winner.
Durant isn’t UD exclusive.
U.D has nobody to blame, but themselves. Hopefully someone with the knowledge on how to properly negotiate can step in, and salvage whats left. With out a license U.D products look even more generic than previous non licensed brands like Donruss, and Tristar.
Extremely good article. And your assessment of the UD brands and players was perfect IMO, I could not agree more. Do you think they will even spend the money to create a 2010 Exquisite product? I just hope SPA isn’t filled with redemptions because the way things are looking I doubt they would be fulfilled.
Nice “pun” right there at the end!
This is a very tough situation. UD product line continues to shrink, high priced settlements over lawsuits continue to Hammer UD’s P&L Statement and the company is still downsizing. I think UD really has 2 choices….. 1) Totally reinvent/innovate it’s product line, or 2) Sell Part or All of the company.
1) Re-invent it’s product line – The licensing costs with the major sports, across the board, has risen to costs that are out of control. The market moving to “exclusive licenses” has reduced market supply and increased the licensing costs for manufacturers. It’s time for UD to evaluate other card options in the entertainment industry with lower costs of entry and higher demand by potential customers. Changing and increasing product line will also come at a increase in costs. Where will they get the money to pay for their new inventory costs? Will a different bank take a chance on funding a company that is most likely a “Going Concern?” It’s doubtful, especially in this economy and banks tightening their credit standards.
2) Sell part or All of the company – UD needs to take a serious look at where they want to be at down the road. If this really is ship sinking, UD needs to look from the perspective of the Stakeholders, employees, customers, debtors etc. UD has value to the collecting company, certainly not what it used to be, but customers, including myself, still clamor for their products. Sometimes it comes to a point where you have to accept the fact that it is in the best interest to sell the company.
Putting “everything on black” may help in the short run, but will it really ultimately save the company? With a product line continually on the decline, I don’t think “putting everything on black” will solve the entire problem!!
UD, at the very least, don’t close shop and give the industry the middle finger.