Beckett’s Grading Gets a Lower Grade
Beckett Grading Services (BGS) experienced a significant downturn in November, grading only 32,000 cards—a 32% decrease from October and a 43% decline compared to the same month last year, as reported by GemRate. This decline has intensified since August, when BGS reported a 13% year-over-year drop.
The downturn coincides with legal troubles faced by Greg Lindberg, founder and owner of the conglomerate that owns Beckett. Lindberg pleaded guilty to orchestrating an insurance fraud scheme that defrauded individuals and businesses of approximately $2 billion. Court documents revealed that Lindberg secured a $100 million loan against BGS, of which the company allegedly received only $500,000. These developments have cast uncertainty over Beckett's future, with potential liquidation of Lindberg's holdings and associated businesses under his Global Growth conglomerate.
In the competitive landscape of card grading, Beckett has fallen to fourth place among the major grading companies. CGC Cards, bolstered by a strong presence in the Trading Card Games (TCG) and non-sport sectors, has surpassed Beckett in sports card grading, solidifying its position behind industry leaders PSA and SGC. Notably, in November, sports cards and miscellaneous items constituted only 13.1% of CGC's total graded cards, yet CGC graded 12,000 more sports cards than Beckett, where sports cards accounted for 60% of its business.
While other major grading companies have reported growth this year—PSA up 12%, SGC up 7%, and CGC up 32%—BGS is the only one experiencing a decline, despite an overall upward trend in the sports card industry.
BGS's Black Label 10s and Pristine 10s continue to command premiums over PSA 10s, particularly in high-quality TCG cards. However, this focus has narrowed Beckett's market presence. Ryan Stuczynski, founder of GemRate, noted that Beckett's emphasis on Black Labels, especially in TCGs like One Piece and Japanese Pokémon, saw a dip in November amid increased promotional activities from competitors. Beckett has largely maintained its pricing structure, with a recent exception during a Thanksgiving holiday special.
Historically known for grading high-value cards, Beckett is now seeing fewer "iconic" cards in its slabs. GemRate's Iconic Tracker, which monitors grading activity beyond new releases and high-volume cards, indicates that Beckett is losing momentum in this area. Stuczynski observed that while Beckett remains strong in niches like high-end basketball cards, TCG, and Topps Now, it lags behind SGC in grading higher-volume sets.
In summary, Beckett Grading Services is confronting significant challenges, marked by declining grading volumes, legal issues involving its owner, and intensified competition within the card grading industry.
