There is no question that sports make a lot of money in the US. One only has to look at the salaries of top professional players or the attendance at major sporting events to realize that there is a lot of money changing hands.
The NFL, NBA, NHL, and MLB generate about $11 billion in annual revenue, and that’s after expenses that include paying their average players as low as $1.25 million (on the low end of the National Football League). up to almost $5 million for the average player. in the National Basketball Association.
Add to that the $52 billion spent each year in the US on sports equipment and the $57 billion on sports apparel and shoes, and the money just keeps piling up. Regardless of the resource you use to define the general sports market, the numbers are staggering. A reasonable estimate of the money that sports contribute to our American economy is $425 billion a year.
So it should come as no surprise to learn that when it comes to sports memorabilia and sports collectibles, there is money to be made as well. From sports franchises and giant retailers to individuals selling online, there are people who make money from sports collectibles every day.
The best thing about sports collectibles is that their popularity crosses the line from professional sports to amateur and college sports. Fans shop for miniature Oklahoma Sooners football helmets, hockey pucks autographed by pro stars, and just about anything with the logo of their favorite football or baseball team. Tiger Woods is a professional athlete without a team, but on any given day you’ll find more than 3,000 items related to him on eBay, and his personal line of golf apparel, the Tiger Woods Collection, earns hundreds of millions each year.
Since there are no hard and fast numbers specifically associated with sports collectibles, it can only be assumed that individuals, retail and online stores, large corporations, and sports franchises in the sports memorabilia business are making money. You can also assume that the numbers keep growing.
Obviously, the personal popularity of a particular athlete or the rise and fall of a particular team’s success make all the difference in the value of collectibles.
Back when Lance Armstrong was still racing and winning the Tour de France, his merchandise sold like hot cakes. Although still popular today within the cycling community, Lance’s merchandise doesn’t move like it used to. The same can be said for fallen stars like former Atlanta Falcon standout Michael Vick, whose merchandise was pulled from store shelves. Today it sells for pennies on the dollar on eBay.
So what are the trends in sports collectibles? Can people earn money by collecting? Trends are constantly changing, experts say. The National Basketball Association reports that sales of Hardwood Classics NBA jerseys have tripled in the last three years. NASCAR is the fastest growing source of sports revenue as the popularity of the sport has spread across the country.
Many online retailers have the unique advantage of being able to move quickly and capitalize on the victories and popularity of sports teams. When a team wins the Super Bowl or an NBA World Championship, sales of that team’s merchandise and collectibles skyrocket. Online retailers can often move much faster than their brick-and-mortar counterparts, quickly posting hot products online and taking advantage of the strike while the fire is hot.
The recent trade of Brett Favre from Green Bay to the New York Jets led to an almost immediate listing of Favre merchandise on online retail sites. From 24-karat gold New York Jets or NFL coins to new Jets “#4” jerseys, sales skyrocketed immediately.
What drives the sports collectibles and memorabilia industry the most is the breadth and depth of the field. Street & Smith Sports Business Journal recently found that fans spend the same amount each year on NFL-licensed merchandise as they do college-licensed merchandise, and both generate more than $2.5 billion a year.
Sports collectibles mean something to the person who buys them. Whether paying $20 for a licensed cap from their favorite MLB team or $100 for an authentic helmet with the logo of their favorite NFL team, fans buy sports memorabilia and merchandise because they love their team and want to be a part of it. of something they see like very special.
Collecting sports memorabilia is a lot like collecting art. People do it more because they love what they are buying, not so much because they expect it to increase in value. Although collectibles, and even sporting goods that no one at the time considers collectibles, can definitely be appreciated.
In 1893, when a nine-man hockey team from Montreal won the first Stanley Cup, no one thought to save a jersey. Photos from the time exist showing the shirts, but one has never surfaced. According to sports experts, if one of the jerseys were to turn up, it could cost up to $400,000, likely from the Hockey Hall of Fame curators in Toronto.
So, with dreams of appreciation and a love of sports working in your favor, sports collectibles will continue to be big business, just like the sports they celebrate. In fact, officially licensed merchandise from US professional sports teams and colleges will fetch more than $10 billion this year for leagues and retailers lucky enough to be in this very hot industry.
