Events That Can Decrease Value of Memorabilia

By Dee Dee Smith

Whether purchasing sports collectibles as a hobby or an investor, it is important to purchase items that will either increase or at least hold their value.  Several factors determine whether the market value of a collectible will increase or decrease.  Some of these factors are predictable, while others are not.

As with any investment, basic economics help to determine the value of a sports collectible.  Rare or hard-to-find items are always in demand, and sure to hold or increase in value.   Consequently, if items from an individual player are in surplus, the value of memorabilia for that athlete will decrease.  If an athlete begins to conduct signings often, their autograph becomes less rare and thus less valuable. 

Memorabilia from the most popular sports always yield the highest return.  In Canada, hockey is the most popular sport and, as a result, makes hockey memorabilia one of the more desired collectibles in that country.  Baseball was once said to be as much a part of America as apple pie.  Although this still holds true, baseball has become less popular in recent decades.  One factor affecting this trend may be allegations of steroid use by some of the most popular Major League Baseball players.  Player strikes in 1972, 1981 and 1994 may have also caused MLB to lose fans.  No matter the reason, as the popularity of baseball decreased, the value of its collectibles also decreased slightly. 

The popularity of an athlete also strongly affects the value of their memorabilia.  A player’s popularity can decrease because of a losing streak, injury, diminishing skills or poor career decisions.  In 2005, the New York State Athletic Commission banned four time Heavy Weight Champion Evander Holyfield from boxing in New York citing “diminishing skills.”  Many reports criticized Holyfield’s attempt to win back the Heavy Weight title saying he was too old and not in physical condition to fight.  Although Holyfield has recently been on a winning streak, questions about his skills as a boxer have adversely affected the value of a Holyfield collection.  

Respect for a player can also affect the value of their signed and unsigned collectibles.  Although respect is very subjective, some situations and events can quickly cause the public to lose respect for an athlete.  No story is more evident of this than that of Atlanta Falcons Quarterback Michael Vick.  After pleading guilty to dog fighting, Vick was suspended from the National Football League.  As a result of these events, collectors no longer had an interest in Vick, and the value for a Vick collection decreased greatly.  The publicized murder trial of O.J. Simpson and his recent arrest for robbery has also caused collectors to turn away from Simpson memorabilia.  Consequently, Simpson collections have also lost considerable value. 

Accusations of steroid use and performance enhancement drugs are having a huge affect on values in the sports market.  Collection values for players involved in such allegations almost always decrease.  Such stories include baseball greats Barry Bonds and Roger Clemens, and Olympian Marion Jones who was stripped of five Gold Medals after admitting to performance enhancement drug use.

If the public loses interest in an athlete, then the value of his or her memorabilia is bound to decrease.  Consequently, investing in a player who seems to be on the rise can be very risky.  If the player delivers, the value of their memorabilia will increase accordingly.  On the other hand, the player’s popularity may be short lived and the value of their autograph may take a sudden dive.  One such situation is when an athlete is projected or a hopeful to win a particular sporting event or accomplishment.  Consider the months and weeks leading up to the Olympics.  Competitors are repeatedly seen endorsing products on television and in magazines.  At this time their autographs are in high demand.  But what happens if they do not win or even place in the Olympics?  The media stops talking about them, their popularity dwindles and as a result their autographs decrease in value. 

Typically memorabilia increases in value over time.  Nevertheless, there are some exceptions to this rule.  Used items (like balls, bats, worn jerseys, pucks, etc.) associated with the breaking of a record (i.e., most home runs) may yield a high price only temporarily.  Once that record is broken, that collectible will decrease in value as collectors will be interested in merchandise associated with the new record. 

When purchasing sports collectibles or memorabilia associated with an individual athlete or player, you are really investing in the worth of that player’s professional career.  As long as that career retains the respect and admiration of the public, collectibles that represent that athlete will be in high demand.  If that player becomes disliked, disrespected or devalued as a professional athlete, the value of items affiliated with them will decrease. 

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