Beckett Grading’s Troubles Deepen Amid Industry Growth and Ownership Scandal

• Posted: December 2, 2024, 7:28 pm
• in Sports Card News
• by bionic

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Beckett Grading Services (BGS), a once-dominant name in sports card grading, continues to face a dramatic downturn. According to November data from grading analytics platform GemRate, BGS graded only 32,000 cards during the month—a 32% drop compared to October and a 43% decline year-over-year. These troubling numbers reflect a worsening trend for Beckett, which was down just 13% year-over-year in August.

The decline has been exacerbated by legal troubles surrounding Greg Lindberg, the owner of Beckett’s parent company. Lindberg recently pleaded guilty to a $2 billion insurance fraud scheme, further destabilizing the already struggling grading company.

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Scandal Clouds Beckett’s Future​

Lindberg’s legal issues have brought to light significant financial instability within the company. Court filings revealed that Lindberg secured a $100 million loan against Beckett Grading Services, yet BGS reportedly received only $500,000 from the loan. The mismanagement has cast doubt on the company’s ability to recover, with the possibility of liquidation looming as Lindberg’s assets come under scrutiny.

These revelations have shaken collector confidence, amplifying the challenges Beckett faces in retaining its foothold in the competitive grading industry.

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Losing Ground in a Thriving Market​

The challenges for Beckett are not limited to scandal. The sports card grading industry is in the midst of significant growth, but Beckett has failed to capitalize on this momentum. Among the “Big Four” grading companies, BGS is the only one experiencing a decline:

• PSA: Up 12% year-over-year.
• SGC: Gaining steadily, with a 7% year-over-year increase.
• CGC Cards: Booming with a 32% increase year-over-year.

Beckett has now fallen to fourth place, behind CGC, which has traditionally specialized in TCG (Trading Card Games) and non-sport cards. Notably, CGC surpassed Beckett in sports card grading in November, despite sports cards comprising only 13.1% of CGC’s total output. Meanwhile, sports cards accounted for 60% of Beckett’s total volume, underscoring its struggles even in its primary focus area.

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Black Labels and Niche Markets: A Mixed Bag​

One area where Beckett has maintained relevance is its Black Label 10s and Pristine 10s, which continue to command premiums in the collector market. These ultra-high-grade cards are especially popular among TCG collectors, including fans of Japanese Pokémon and One Piece. However, this niche strength isn’t enough to offset losses in high-volume grading.

Compounding the issue, Beckett’s competitors have ramped up promotional efforts, drawing attention away from its offerings. Although Beckett recently introduced a Thanksgiving holiday special, its traditionally higher pricing has made it less competitive in the current market.

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Decline in Iconic Card Grading​

Another area of concern is Beckett’s diminishing role in grading iconic cards. Historically, BGS was a go-to choice for collectors of legendary cards, such as the 1952 Mickey Mantle and the 1989 Upper Deck Ken Griffey Jr. However, GemRate’s Iconic Tracker shows a decline in Beckett’s grading activity for these marquee items. This trend indicates that Beckett is losing momentum even in areas where it once excelled.

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Bright Spots Amid Challenges​

While Beckett’s overall grading numbers are in decline, the company remains competitive in a few key niches:

• High-End Basketball Cards: Beckett continues to see strong demand for premium basketball cards.
• TCG Grading: Its Black Label focus keeps it relevant in the TCG market, where pristine grades hold significant value.
• Topps Now Cards: Beckett has found success grading limited-release cards, though momentum in this area also slipped in November.

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The Road Ahead​

Beckett Grading Services faces mounting challenges, from legal entanglements to increased competition. The growing success of rivals like PSA, SGC, and CGC underscores Beckett’s inability to adapt during a booming period for the industry. While its reputation for premium grades still holds value in niche markets, the overall decline in grading volume suggests deeper systemic issues.

The future remains uncertain. Will Beckett be able to restructure and regain its footing, or will it continue its downward spiral? Collectors and industry observers will be watching closely to see if the company can turn things around in the face of mounting adversity.