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Upper Deck Confirmed As Exclusive NHL Trading Card Licensee
Dec 29 2005 2:21PM
By Al Muir
Despite a cone of silence erected around the hobby by the involved parties, it appears the industry's worst-kept secret is officially out in the open: Upper Deck has secured exclusive licenses to produce NHL trading cards with both the league and the NHL Players' Association.
In an article published in the current issue of Street & Smith's SportsBusiness Journal, writer Andy Bernstein quotes sources on all sides of the deal discussing the exclusivity of the license.
The story also quotes In The Game president Brian Price as saying the lack of licensing means his company "likely will go out of business."
To this point, the league, PA and Upper Deck all have ignored repeated requests to discuss the exclusivity of the deal with Beckett Hockey.
However, Bernstein, a writer who regularly covers the business of hockey for the magazine, was able to get all parties to speak freely of the trading card deal as the backdrop to a larger story regarding a struggle over the licensing of video games.
The war of words generated by that struggle is likely to catch the attention of hockey card collectors.
"I think choice is important," Brian Jennings, the NHL's vice president of consumer products marketing was quoted as saying regarding the league's desire to have more than one video game manufacturer. "We were not comfortable going with an exclusive model. We think having two highly motivated partners in this space means more compelling games for our fans."
However, the league was said to be comfortable with a single licensee for trading cards and quickly struck a deal with Upper Deck in the wake of the PA-granted exclusive in mid-August.
"In a category that had been a troubled category, we were looking and seeking a bold move," Jennings said of the decision to go with one manufacturer. "There was an overproliferation of brands."
Although the five-year, $25 million exclusive arrangement was first transacted between the PA and UD, it appears the one-manufacturer model may have been birthed in New York. According to Bernstein, Jennings claims the league "had been talking to Upper Deck about an exclusive as far back as last February or even the Christmas season of 2004."
There is no word of the length or terms of the deal between Upper Deck and the NHL, although the financial outlay is believed to be considerably less than what the PA is being paid.
Upper Deck marketing manager Kerri Stockholm reveals that this will be the company's best year in the hockey card category, "probably since we've had a license."
"As the only company producing hockey cards, there are more opportunities for us," she is quoted as saying.
Requests have been made to all involved parties for additional comment. Upper Deck's offices are closed for the holidays until Jan. 4, and no one is expected to be available until that point.
Price's comment probably won't catch many in the industry by surprise, but they do fly in the face of what he said in an exclusive interview for the December issue of Beckett Hockey.
"Yes, the NHL and NHLPA hold the power of licensing but In The Game is not giving up," Price said. "We're not done yet. With the tremendous support of our loyal collectors and based on the sales of our new products to date and the pre-orders for our upcoming products, we will survive."
More to follow. | | |
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