Topps in the Modern Baseball Card Industry

While "Traded" or "Update" sets were originallyeach other, as did its competitors. The resulting glut
conceived to deal with players who changed teams,of different baseball sets caused the MLBPA to take
they became increasingly important for a reason. Indrastic measures as the market for them
order to fill out a 132-card set (the number of cardsdeteriorated. The union announced that for 2006,
that fit on a single sheet of the uncut cardboardlicenses would only be granted to Topps and Upper
used in the production process), it would contain aDeck, the number of different products would be
number of rookie players who had just reached thelimited, and players would not appear on cards before
major leagues and not previously appeared on a card.reaching the major leagues.
They also included a few single cards of players whoAlthough most of its products were distributed
previously appeared in the regular set on athrough retail stores and hobby shops, Topps also
multi-player "prospects" card; one notable example isattempted to establish itself online, where a
the 1982 Topps Traded Cal Ripken, Jr.. Since asignificant secondary market for sports cards was
"rookie card" is typically the most valuable for anydeveloping. Working in partnership with eBay, Topps
given player, the companies now competed to belaunched a new brand of sports cards called etopps
the first to produce a card of players who might bein December 2000. These cards are sold exclusively
future stars. Increasingly, they also included highlyonline through individual "IPOs" (or, "Initial Player
touted minor league players who had yet to play inOffering") in which the card is offered for usually a
the major leagues.week at the IPO price. The quantity sold depends on
For example, Topps obtained a license to producehow many people offer to buy, but is limited to a
cards featuring the U.S. Olympic baseball team andcertain maximum. After a sale, the cards are held in a
thus produced the first card of Mark McGwire priorclimate-controlled warehouse unless the buyer
to his promotion to the major league level, and onerequests delivery, and the cards can be traded online
that would become quite valuable to collectors for awithout changing hands except in the virtual sense.
time. This card from the 1984 squad appeared inTopps also acquired ThePit.com, a startup company
Topps's regular 1985 set, but by the next Olympicthat earlier in 2000 had launched a site for online
cycle the team's cards had been migrated to thestock-market style card trading. The purchase was
"Traded" set. As a further step in this race, Toppsfor $5.7 million cash in August 2001 after Topps had
resurrected its former competitor Bowman as aearlier committed to invest in a round of venture
subsidiary brand in 1989, with Bowman sets similarlycapital financing for the company. This undertaking
chosen to include a lot of young players with brightwas not very successful, however, and Topps
prospects.unloaded the site on Naxcom in January 2006. The
Also beginning in 1989 with the entry of Upper Deckamount of the transaction was not disclosed, but
into the market, card companies began to developTopps charged a $3.7 million after-tax loss on its
higher-end cards using improved technology. Followingbooks in connection with the sale.
Topps's example, other manufacturers now began toTopps grabbed national attention early in 2007 when
diversify their product lines into different sets, eachthe new card of Yankees' shortstop Derek Jeter
catering to a different niche of the market. The initialwas found to have been altered to include an image
Topps effort at producing a premium line of cards, inof Mickey Mantle standing in the dugout and
1991, was called Stadium Club. Topps continuedPresident George W. Bush walking through the
adding more sets and trying to distinguish them fromstands.