VOLUME 2, NUMBER 143
HOT*BUTTON*STORY
(PARIS NO ZOMBIE ON LARRY KING!!)
** UPPER DECK BEGINS HOSTILE TAKE-OVER OF TOPPS
** HOBBY'S DESPERATE CRY FOR TOPPS
** SPORT KINGS ARE BACK WITH NEW CARDMAKER
** NY DAILY NEWS SAYS WAGNER CARD "ALTERED"
(QUESTIONS PSA FOR GRADING IT A PSA 8)
** CLASS ACTION SUIT AGAINST RC2 CORPORATION?
** EBAY CEO CASHES IN $20 MILLION IN STOCK
** REAL DEAL OPENS RETAIL OUTLET
** SIMPLY AWESOME SIGNS DAWKINS, STEINER INKS KAREEM
DETAILS ON THESE AND OTHER STORIES BELOW IN TBR: THE BRILL REPORT.....
EDITORIAL COMMENT: UD VS. TOPPS VS. EISNER; STOP THE MADNESS
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(UPPER DECK BEGINS HOSTILE TAKEOVER OF TOPPS)
The move is on. Upper Deck has officially filed with the SEC and is now offering $10.75 per share for all the outstanding stock of The Topps Company. The move was expected after a Delaware judge ordered Topps to release Upper Deck from the "Standstill" part of the agreement in which Upper Deck had made an offer to buy Topps.
The offer is worth $425 million or $40 million dollars more than the original offer from a group led by former Disney CEO, Michael Eisner. The offer is $1 per share more than the Eisner offer. It was first thought UD was making the move to look into Topps contracts and books as well as all available financial information, but now some experts believe UD actually wants to purchase Topps.
"I think Richard (UD CEO McWilliam) is serious enough about this and he may really go full bore to buy Topps," said one insider speaking on condition of anonymity. "Eisner may not want to go into a bidding war and may be tapped out with his offer, while Richard is pretty determined once he puts his mind to something."
Topps had balked at UD's offer simply stating there were regulatory issues involved, which Judge Strine in Delaware questioned. He pointed out Topps had previously won a lawsuit over Fleer in the 1970's which ended up with Topps giving up what many considered a monopoly on making baseball cards. Fleer, Donruss, Score and eventually in 1989 Upper Deck entered the market.
The interesting note about the UD offer is that it comes as a complete "cash" offer according to the company's statement.
"The offer consists solely of cash and is not conditioned upon any financing arrangements," said the UD statement. "The obligation to purchase Topps shares under the offer is subject to the conditions of Section 14 of the offer document."
The offer from Upper Deck is good through July 24, but may be extended if UD so desires. UD is sending letters to all stockholders who own Topps shares offering them the $10.75. Topps says it's Board isn't budging at the moment.
"At this juncture, the Topps Board has not made any determination with respect to the Upper Deck tender offer, nor has it changed or amended it's recommendation with respect to the Tornante Company LLC and Madison Dearborn Partners LLC offer," said the statement from Topps. "On March 5, 2007 we entered into a definitive agreement to be acquired by The Tornante Company and Madison Dearborn Partners for $9.75 per share in cash."
Topps says it will consider what has happened and will issue a recommendation to stockholders by July 9 which is the deadline required by law. The statement went further in telling stockholders not to make any hasty decisions.
"Topps urges stockholders to defer making a determination whether to accept or reject Upper Deck's tender offer until they have been advised of the position of Topps Board of Directors."
What will Eisner do? It is anybodies guess but indications early on were he would not get into a bidding war. He let it also be known there would be little restructuring of the company which means a lot of the key employees, those with lots of stock, would likely stay on. Eisner is probably counting on these folks to not sell to UD and to keep him in the mix.
This was one of the contentions considered by Judge Strine who noted Topps board had some sweetheart deals to keep key players in place. Arthur Shorin's son-in-law is a top executive with the company and there are others who have been in place for some time. It is apparent some of them were to stay on if Eisner took over. The Upper Deck deal basically removes them.
While they have not spoken, it is reasonable to assume MLB and the MLB Players Association are not in favor of Upper Deck buying Topps. It means one company, no competition and more importantly LOSS of revenue. It could easily offer a license to Playoff, Press Pass, Tri-Star or In The Game. It is not assured, due to guaranteed heavy royalties, anyone of them would take baseball up on the offer. This isn't 1991.
The Brill Report has asked for a response from MLBPA but none has been forthcoming. TBR does not expect the association to respond.
Most dealers and hobbyists we've talked to are not happy about Upper Deck taking over Topps. Competition or lack of it is one key to the lack of support. The other is most dealers feel they will be held hostage to the whims of one company even if it were the other way around; Topps buying UD. Having only one company making baseball cards in today's market is not something they look forward to.
Also up in the air is what would UD do with the candy company division? Upper Deck doesn't really have any reason to keep it to run and selling it off would help reduce any debt incurred in buying Topps. In the deal any company which purchases Topps gets an $85 million bonus. This is the amount Topps has in cash reserves.
The other bonus of course is the Topps archives known as The Topps Vault. A check of eBay shows Topps has sold off thousands of items from the Vault with very likely many more millions left to sell at exorbitant prices. Especially when you consider much of what Topps has in the Vault is basically free to it to sell. At least four and perhaps eight proof versions of every card Topps has ever made, plus wrappers, boxes and you name it. The number boggles the mind.
There is money to be made here and UD management understands this, probably a lot more than Topps management and board.
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(TOPPS VS. UPPER DECK; A CRY FOR HELP)
Here is an interesting email we received from a loyal reader who is opposed to Upper Deck taking over Topps.
"I'm writing from a friends account because it is not safe out there for hobby people to speak out against Richard McWilliam (CEO of Upper Deck). Please publish Topps board of directors and Michael Eisner's address and his board. Maybe some hobby store owners and collectors can start a writing campaign. Someone must stop this insanity or the hobby is doomed."
Well, Mr. Anonymous, we don't know either of those but we suggest you try ashorin@topps.com for the head of Topps although we are not totally sure this is Arthur Shorin's email, and we also suggest you try admin@tornante.com which should get to Mr. Eisner at some point.
Good Luck!
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(LONGTIME HOCKEY COMPANY MOVES INTO OTHER SPORTS)
(Eds note: Correcting ownership of Sportkings to reflect new company not ITG.)
Remember the name Sport Kings. It is back and Dr. Brian Price is bringing it back in October. Price, who founded In The Game trading cards and who makes hockey products not licensed by the NHL, is at it again. The Sportkings cards will feature baseball, football, swimming and other sports upon it's return. However, it's not under the ITG brand and is a totally different company under the Sportkings label, with Price exercising his expertise in the card business.
"As a long time collector of sportscards and memorabilia, I have always been a fan of the original Sport Kings Gum set and I wanted to continue the tradition for modern sports card enthusiasts and historians," said Price. "The time was right to undertake this project and I believe that the brand will appeal to a broad audience."
(Autographed card of Roger Clemens who is currently a major leaguer will be in the highly limited Sportkings set.)
Price has a history of such things. In 1991 he achieved his long time dream of creating the lost Parkhurst years. He put together a set based historically of a mid-1950's set which Parkhurst for some unknown reason never produced. At the time he had acquired the Parkhurst name, used it to produce other products and eventually relinquished his rights. Those rights recently have been licensed to Upper Deck.
The Sport Kings cards, released in 1933 and 1934, featured 48 athletes from all walks of life including swimming, boxing and track. Price will do the same thing using retired players such as Roberto Clemente, Troy Aikman, Bart Starr, Ted Williams and Patrick Roy among many others. Even soccer star Mia Hamm will be featured.
(Reprints of the very popular Sport Kings are common.)
"Over the past 73 years the number of athletes that were dominant in their respective sports gave us the daunting task of choosing which ones would be involved in Series A of Sportkings," Price added. "More athletes will be included in future releases and it is my goal to offer collectors a diverse and original mix with every series."
Game used and autographs will play a big role in the series as well.
"We will be providing collectors with pieces of sporting history with Sportkings and that is sure to raise some eyebrows," said Price. "There will be no photo shoot memorabilia or redemptions in this product. Collectors have spoken loud and clear on these issues."
A high end, extremely limited product, there will be 7 cards per pack with one autograph per pack, two additional autographs or memorabilia cards, three base cards in traditional size and one base card in the original format size. The product is due in October. You can check the web site at www.sportkingsgum.com.
If you noticed the name is somewhat different than the original with Price using Sportkings rather than the original Sport Kings, which was licensed at one time by Victor Shaffer founder of Press Pass.
"Victor licensed the name from the same person I did, the owner of the trademark and his license is over...we wanted to have a different name so the collectors new to the hobby would not be confused," Price told The Brill Report. "Victor was always ahead of his time."
Shaffer was the first in the hobby to create "game used" with "race used" lug nuts in Press Pass racing long before Upper Deck began inserting jersey cards into products.
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(WAGNER CARD & PSA BROUGHT UNDER SCRUTINY BY NY DAILY NEWS)
The New York Daily News is reporting (June 25 issue) they have evidence the Honus Wagner card which sold recently for $2.35 million dollars was doctored and not only cut from a sheet. It is widely believed the card, which is graded PSA 8, was cut from a sheet and never ever saw a tobacco pack. However, there have always been questions as to whether the card was trimmed to the point to make it so mint. The Daily News says it now has photos which show the card was "doctored to enhance it's appearance and value."
The card first came to major hobby prominence when Wayne Gretzky and Bruce McNall bought it at auction for $550,000. It was later sold several times over and most recently purchased by a Southern California Group for $2.35 million. The Gretzky/McNall combination plus the fact the card was given away in a Wal-Mart promotion later on, has built the legend of this particular card beyond belief.
The article in the Daily News raises an even more important question. Obviously a card with such prominence was inspected with finer detail than probably any other card ever graded by PSA. If this is the case, and everyone expects it should be, how could PSA even give the card a grade if it was doctored after being cut? This is a mystery PSA will surely have to answer at some point.
The article says PSA did not return calls regarding those questions.
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(PARENT SUES RC2 OVER LEAD PAINT IN THOMAS TOY)
What might turn out to be a class action suit has been filed against RC2 Corporation which recently recalled a number of Thomas The Toy Train elements because of lead paint used to cover the toys. Channing Hesse hired a Seattle law firm which filed the suit claiming Hesse bought many of the Thomas Toys over the years and now wonders about the long term effects on the children.
"We think RC2's response to this dangerous health issue is far short of what is necessary," said Steve Berman, managing partner of the law firm handling the case. "There are legions of children who may have ingested lead paint from these toys and we think the company should stand up to its responsibility to help identify these kids."
(Thomas & Friends toys such as this one have been sold for years)
The complaint states up to 50-percent of the kids under age six who played with these toys likely put them into their mouths as kids often do. It charges these children were exposed to a wide range of health effects including but not limited to learning disabilities, behavioral problems, stunted growth and impaired hearing.
"The biggest horror of this story is that parents know their children often put toys in their mouths," said Berman. "Consumers trust companies like RC2 will live up to the promise it makes in it's advertising, promising "safe and quality" playthings."
The suit charges RC2 violated consumer fraud laws in several states.
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(PARIS ON KING, NO ZOMBIES HERE)
Figure "soft ball artist" Larry King wouldn't ask Paris Hilton a fun question let alone a hard question during his live interview with the recently jailed heiress. It was hoped King might ask Paris about the Topps Zombie's cards (both are parodied in the set) but it wasn't to be. We know King was shown some of the cards including his and Ms. Hilton's. Too bad it could have made for a fun night and some publicity for the hobby.
(PARIS HILTON GETS NO HOBBY LOVE)
In her interview with King, Ms. Hilton talked about her time in jail and how it changed her life. She also told the audience most of what is written about her is simply not true.
When pursued by King she simply said what people write about her doesn't bother her as much as some might think. She doesn't respond to the accusations and deny them simply because she doesn't want to make it worse. When King pushed her on the issue she said "I'm saying it right here and now" on your show.
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(WHITMAN DEALS STOCK, TAKES IN $20 MILLION)
Speaking of the rich and famous. Who says you can't make money with eBay? Meg Whitman just did. The eBay CEO just cashed in a ton of stock under her current plan. The amount she sold? A cool $20 million. That's a nice payday. Call it a Buy It Now with pizazz.
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(REAL DEAL OPENS FLORIDA STORE)
It's been a long time for Randy Gerstenberger but after years of selling wholesale memorabilia he's finally opened a retail outlet in Lake Mary, Florida. Real Deal Memorabilia has been supplying stores and dealers with lots of Florida based and more autographed items for almost a decade.
(Real Deal's new store front in Lake Mary, Florida.)
It seems the store market, or at least what is perceived to be the "retail" market has picked up some in recent years so seeing new stores open up is a good sign for the industry.
"I know we haven't sent many emails lately, but for good reason," Gerstenberger told The Brill Report. "We have opened a brand new retail store/showroom in Lake Mary so if you are ever passing through the Orlando area feel free to stop by."
Real Deal specializes in private signings of regional players but has had others. Coming up in a couple weeks the company will ink Urban Meyer and has had exclusives with Fred Taylor and Mark Brunell.
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(SIMPLY AWESOME SIGNS DAWKINS)
Rob Mitchell's Simply Awesome memorabilia company has signed Eagles safety Brian Dawkins to an exclusive deal. Dawkins deal includes all autographs and memorabilia with the exception of sports trading cards.
(Brian Dawkins signs exclusive deal with Mitchell Mkting.)
A private signing is set for July 31, but the company will take in send in items up until July 21. Mitchell Marketing also has exclusive deals with Ryan Howard, JJ Redick and John Cappalletti.
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(KAREEM ABDUL-JABBAR SIGNS WITH STEINER)
Steiner Sports is doing a private signing with one of the greatest NBA players of all time this week. Kareem Abdul-Jabbar doesn't sign much which puts his memorabilia into a premium class and Steiner is having him sign a host of items including non-sports.
Abdul-Jabbar, a six-time MVP and two time scoring champ, played most of his career with the LA Lakers after coming over from Milwaukee which drafted him no. 1 after his senior season at UCLA. He also appeared in at least one film, "Airplane" (1980) and the author of the Sky Hook shot will sign items from the movie as well.
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The Cubs will move forward with Barrett home Jersey night this week and a bobble head giveaway on July first. Barrett has been controversial at best and the team decided to move him with the blessing of several pitchers and teammates. The fans aren't too thrilled with him either and it's hoped they don't toss the bobbers back onto the field when they get them. 




































