|Sports Card Producers' Defensive Moves Neutralize Effects of Basketball Lockout|
|Key Words||Lockout, Profit, Prices, Sales, Strike, Revenues|
The basketball lockout that threatens the 1998-99 season has not damaged the sports trading card industry. One reason is that manufacturers delayed or canceled shipments in anticipation of the dispute.
This more cautious attitude resulted from the lessons of previous years. In the late 1980s and early 1990s, speculators would buy a numerous packs in search of a limited edition card that they would resell for a profit. Also, new styles and designs boosted demand. Prices rose to very high levels. New card sales reached $1.1 billion in 1991. Manufacturers then overproduced causing card values to drop and sales to fall. Some producers went out of business. Then in 1994, the baseball strike caused a steep decline in the business because producers were awash in cards.
In addition, the effects of the basketball lockout have been offset by heightened interest in baseball cards stimulated by the Mark McGwire-Sammy Sosa home-run race. Industry revenues were able to remain roughly constant at $400-450 million.
(Updated February 1, 1999)
|Source||David A. Markiewicz, "NBA strike isn't deflating the trading card business", Cincinnati Enquirer, November 29, 1998.|
Return to the Equilibrium Index
©1998 South-Western College Publishing. All Rights Reserved webmaster | DISCLAIMER