TOPPS DISSIDENTS FILE IN HOT PURSUIT
VOLUME 2, NUMBER 129
HOT*BUTTON*STORY
(SANDY KOUFAX DRAFTED BY ISRAEL!!!)
** NFL DRAFT FEW SURPRISES
** HASBRO/SONY/MAGIC=UNREAL!
** PUJOLS SIGNS UPPER DECK DEAL
** KOBE VINYL ** TOPPS ROOKIE FINEST ** CANADIAN EXPO **
DETAILS ON THESE STORIES AND MORE IN THE BRILL REPORT!!
EDITORIAL COMMENT: PUJOLS UDA DEAL? GOOD OR NOT?
NEXT WEEK: MOBSTER FRANK VINCENT ON COLLECTING, THURSDAY!
====================
(DISSIDENTS FILE AGAINST TOPPS SALE, GOVERNANCE QUESTIONED)
With the vote to determine the fate of the Topps company coming up shortly, dissident board members are working overtime to kill the deal which would sell the company to a Micahel Eisner led group for $385 million. In a strongly worded SEC filing, board members who oppose the deal say the price undervlaues the company especially in light of a better offer from a competitior, and the fact the sale price is below the price Topps authorized the company to repurchase it's stock.
"The price represents only a Mickey Mouse-like 3% premium to the average closing price of Topps shares for the 20 trading days preceding the signing of the merger agreement," wrote The Committee to Enhance Topps, led by board member Arnaud Ajdler. "The company fails to tell you that the most recent proposed stock repurchase program that was approved by the Topps board for the period September 2005 through September 2006 had a top price of $10.62 per share."
The above statement was a not so veiled reference to Eisner who was formerly the head of Disney. He now chairs Tornante which is a group looking to acquire and market internet content. Tornante has already purchased an internet socializing site and a company which makes children's sports videos.
The sale price agreed to was $9.75 a share and Topps has $85 million in cash reserves. A competitior, believed to be Upper Deck, offered over $10 per share which Topps management turned down. Since the merger announcement the stock has traded as high as $10.17.
The dissidents are prepated to take over the company and make their own moves if the vote goes against the deal. The filing continues to detail how they will move forward.
"If the merger is voted down, we intend to nominate a slate of highly qualified business executives to replace members of the existing Topps board," said the statement. "We believe the company should hire a new CEO with extensive marketing and turnaround experience who would bring a fresh perspective to the organization in order to improve the operations of the company."
Current CEO Arthur Shorin is the offspring of the company founders. His son-in-law is also a key executive at Topps. The company has been off and on family owned for decades.
Calling the current deal "Eisner's Uncle Scrooge like offer" (another reference to a Disney character) the group is getting ready to seek proxy's for votes from the shareholders. One key to angering the dissidents centers around the three key players who voted against the deal and who sit on the Topps board. After some pressure they were allowed to use the "Go Shop" period (the 40 days in which the company can shop the deal around to try to get a better offer) to find a competitive or better sale price. Shortly after they began working on this the board removed the three dissidents from the search committee.
The Associated Press reported recently the move and the results of the move smack of a lack of governance by Topps and seems to point out the board may be close to violating SEC laws. Another perspective, and the one which Topps takes, stated because the dissident board members talked openly about wanting to kill the deal and take over the company, the move was justified since they would likely be of a mind to first kill the current deal, rather than find a better one.
As referenced above, it seems as if Upper Deck made an offer of $10.75 a share or a dollar more than Eisner. The report specifically did not mention UD but rather "Bidder C" which it called Topps main competitor in the entertainment field. This bid was rejected by Topps which stated Topps could not verify Bidder C had enough money to buy Topps and the liability of rejecting the offer might cost Topps too much money in losing the Eisner deal. There were also regulatory concerns.
One of the major concerns among those who are looking unfavorably at this sale is the fact Topps turned down the Bidder C option combined with the lack of competition aspect. The dissidents feel if the Bider C avenue were pursued a bidding war might take place upping the value of the final sale price. This would make things much better for the shareholders. The statement called the move by Topps to look at over 100 other offers a "smokescreen," since many were far from being qualified and they called it an agreement "designed to deter" rather than find other bidders for Topps.
For the dissident group any action by Topps management or other board members, such as would compromise the governance rules, might be cause for legal avenues to be pursued.
==================
(COLLECTING THE NFL DRAFT PERSPECTIVE)
As Sage and Press Pass Draft Pick products hit hobby store shelves just days ahead of the NFL Draft on Saturday there were few surprises as to whom the Oakland Raiders would pick with the first selection in the draft. As the name Jamarcus Russell rolled off the tounge of NFL Commissioner Roger Goodell, Russell automatically by virtue of being a skill position player and the premier selection, became the hottest card to chase in the hobby. The talented underclassman may not start right away which will take away from the early hype but Raider fans, and there are many, will keep his name alive through the Raider Nation.
The Detroit Lions followed what seems to be an annual ritual and selected a wide reciever with their first pick, the no. 2 selection overall. It didn't matter Calvin Johnson is probably THE best player in the draft, the Lions haven't gotten out of the wide-out mode in years. They have had unspectacular luck with their former top picks which included USC's Mike Williams, Roy Williams and Charles Rogers to name just three.
Johnson will be a hot commodity.
(JOHNSON AND RUSSELL WILL RIVAL PETERSON FOR THE TOP ROOKIE CARDS)
It did not hurt the next several picks, and indeed 21 of the 32 first round picks were lineman or defensive players who draw no "hobby love." The hype around the first running back selected will translate well for Oklahoma's Adrian Peterson who went no. 7 to the Minnesota Vikings. He was on several sports magazine covers in recent weeks including Beckett Football. With the Vikings penchant for doing good things with rushers and with Peterson's no. 7 overall selection, plus his talent he will rival and eventually pass Russell as the most sought after hobby/rookie card in the early releases.
Press Pass and Sage will do well as usual until the NFL licensed products arrive. The first is usually Topps Draft Picks and Fleer Ultra. Both feature the players in college uniforms but they are considered Rookie Cards because they are licensed and carry NFL Team logos on the cards. These should be out in the next month or so.
Until then college fans and those who love autographs will burn up the pavement looking for the draft pick cards. Both Sage and Press Pass go heavy on the signed cards with the first Sage Hit delivering five to six autographs per box.
The big surprise in the draft was the falling of Brady Quinn to no. 22. The Notre Dame quarterback was drawing serious Heisman consideration the past two years and until Russell's impressive showing (scouts love his size and arm strength saying he can throw the ball through a brick wall) was considered likely to be the first quarterback taken. As it was he fell to no. 22 and Cleveland traded with Dallas for the pick and the right to grab the Irish star. He'll do well in Cleveland and will likely surpass Russell in the early going of the NFL season.
The draft was heavy in wide recievers with only two running backs going in the first round. Marshawn Lynch of Cal was the other back selected, going to Buffalo.
====================
(HASBRO, SONY TEAM UP FOR VIRTUAL MAGIC PHENOMENA)
What do you get when you combine a Sony Playstation, Magic the Gathering and Hasbro? How about a new gaming experience where your trading cards actually do battle on the video screen during the game? It is being touted as the next experience in gaming and if the powers that be are anywhere near the target it will revolutionize trading card gaming as we know it.
The deal involves Hasbro, which owns Wizards of the Coast and makes Magic, and Sony, developer of the Playstation 3 technology and what now is being called Playstation-Eye. The idea of the new The Eye of Judgement series is for collectible trading cards to be the centerpiece as is usually the case with Magic. However, when two cards are put into play to do battle they are then held under the "Playstation-Eye" game piece on a 3 x 3 board, and the specially encripted cards come to life on the video screen. There they battle in what amounts to live action with the winner moving on.
"We are very excited to enter into a collaboration with Sony Computer Entertainment on trading cards for Eye of Judgement which will deliver a ground breaking entertainment experience that uniquely blends the global popularity of traditional trading card games with the next generation video games," said Phil Jackson, Group Executive of Hasbro Games. "Together we're creating a virtual world that brings fantastic trading card game based creatures to life for unprecedented interactive battles that will appeal to millions of fans around the world."
Eye of Judgement is set to release in the Fall and is so highly anticipated it took two industry giants to pull this one off.
"The Eye of Judgement represents a totally new genre in gaming," said Phil Harrison, Corporate Executive with Sony and President of SCE Worldwide Studios. "Combining Hasbro's clear market leadership in trading card games with the immense power of Playstation 3 and Playstation-Eye is a powerful formula which will result in a revolutionary video game experience that will amaze and engages gamers around the world."
A preview of the game in Japan at a trade show caused show sponsors to award it with the medal for the prestigous "Futures" division.
=======================
(KOBE VINYL ACTION FIGURE NEARLY SOLD OUT)
With the sucess of the Lebron James series of vinyl figures Upper Deck decided it was a natural to expand the license to cover NBA leading scorer Kobe Bryant. The new Kobe Vinyl's are nearly sold out but are available at two related UD sites for the SRP of $49.95.
Both Kobe's site and All Star Vinyl have the figures but with only 2000 made they will sell fast. Only 500 of the figures wearing the Lakers' away jersey were produced.
(KOBE VINYL SELLING WELL.)
==========================
(TOPPS LATEST FINEST ROOKIE ANNOUNCED)
Topps announced the latest redemption card in its Finest Baseball series is Tampa Bay Japanese star Akinori Iwamura. Iwamura, who plays third base, is the third in the 10 card series to be announced with all the cards expected to ship in mid-August.
==========================
(PUJOLS SIGNS EXCLUSIVE DEAL WITH UPPER DECK AUTHENTICATED)
Upper Deck Authenticated has added another stud to their stable of exclusive super stars who will sign for the company. Arguably the most popular player in the big leagues today, St. Louis Cardinals slugger Albert Pujols, inked a deal which will put his signature and name on items with the UDA hologram.
Pujols, who is one of the most highly counterfieted players of recent years, wanted to put a dent in the autograph forgery field by signing with a company such as UDA which is a leader in the field.
"There are many companies out there that provide memorabilia to collectors, but Upper Deck does it better than all of them," said Pujols in a statement. "The people that mean the most to me can rest assured when they buy an Albert Pujols item from Upper Deck that those are the real deal."
Much of Pujols signed items will feature World Series offerings based on the fact the Cardinals won it all in 2006. It will include balls, jerseys, framed items and in May the exclusive Upper Deck invention, "Breaking Through." This is where the player's bat, ball or club actually is part inside the glass frame and partially outside the frame.
(Upper Deck's Breaking Through Product features the item both inside and outside the glass.)
"Albert Pujols and Upper Deck know how to create one of a kind moments where baseball fans and collectors can feel close to the on field action," said Tim Muret, Vice President of UDA. "Albert Pujols shares the same vision for his memorabilia as we do, to develop exclusive autographed authenticated pieces for his family, friends and fans."
The good news is the signing will cut mean there will be more legitimate Pujols signed items on the market although for a higher price. Due to it's three step patented process, UDA items are traditionally more money. While it will raise the bar and price some collectors out of the Pujols market, the real downside is those same casual collectors will be more likely to buy the cheap forgeries which will continue to permeate the marketplace.
As usual it should be "Buyer Beware" and if you really have to have it the UDA items will be legitimate. Much of the money from his UDA deal will go to the Albert Pujols Family Foundation.
=======================
(SANDY KOUFAX DRAFTED BY ISRAELI BASEBALL TEAM)
His fastball may not be what it once was and his curveball doesn't break as it did in 1966 when he retired after winning the Cy Young Award again, but if he'd like to pitch, an Israeli League Baseball Team says they'd welcome Sandy Koufax. The Modi'in Miracle drafted the 71 year old former Dodger great and Hall of Famer with their last pick in the innagural baseball draft for the league in Isreal.
The team doesn't expect the quiet Koufax to show up and he was not available to respond to the move but team general manager Dan Duquette felt he wanted to honor the all-time great with the selection. Koufax rarely makes a public appearance.
Koufax, who played against team manager Art Shamsky in the 1960's, remains one of the most respected players in the game's history. He took a long time stand, albeit a quiet one, involving his Jewish heritage. He refused to pitch the first game of the 1965 World Series because it fell on the Hebrew high holy day of Yom Kippur.
======================
(TORONTO EXPO LINE-UP SET)
Canada's long running top card and collectibles show is set for this weekend and some rare names were added to the autograph list at the last minute. The 32nd Annual Toronto Spring Expo runs May 4-May 6 and will feature an impressive line-up of former greats.
Among the signers will be Hall of Famers Bob Feller, Fergie Jenkins and players such as Paul Coffey, Bobby Clarke with late additions including Wilf Paiement and Vida Blue. Paiement scored 356 goals in his 14 year NHL career.
There will be 400 booths at the Expo featuring 800 tables and 250 dealers. Both In The Game and Upper Deck will have a major presence as the only companies making hockey cards today.
================















HEADLINES:


















































































