Saturday, March 16, 2024

We Pass The Savings On To You

Friend o'the Archive Mike Savage recently sent along some significant lists of specials from Woody Gelman's Card Collectors Company, issued but a mere fifty years (!) ago. There is some excellent information contained in these flyers about a brace of test issues which feature some of the toughest items Topps ever put out and show how CCC was used as as one of their conduits for unsalable overstock.

Today let's take a look at Specials of the Month list #4, which came riding along with a more traditional CCC catalog in this handily postmarked envelope:


I don't have a copy to show from my collection but that would have been Catalog #26 in there, dated January 15, 1974.  The list of specials is a wonder to behold:


In order, from the top we get a series of older insert and oddball sets being bled off, plus some excess from Woody's personal stock of tobacco cards.  The 1951 Red Backs were still being stocked, almost a quarter-century after their issue (and 1952 reissue)-impressive!  The tobacco cards were from the T205 and T206 sets and would have been alien to most of the CCC audience.  The 1959 Fleer Ted Williams set was not, as we have learned in the sixty-five years since it's issue, "very scarce" and in fact is quite common.  Even the elusive card #68, which was pulled over a rights issue with Topps involving the use of Bucky Harris's image, has been graded in abundance over at PSA, with 1,140 slabbed and counting.

1969 Super Baseball was a set that was held in some abundance by CCC and hopefully this list got people ordering it because about fifteen months later, their warehouse would be substantially consumed in a fire, with the set's population being disproportionately wrecked. Those sets purchased from CCC after the fire would often come with singed edges!  The 1968 and 1969 inserts were pure overstock and while it's not at all clear if the 1968 Baseball Game being offered was the boxed version, the "Batter Up" language suggests it could be. The 1964 Giant Baseball cards were massively overproduced as Topps issued them after the 1964 All-Star game to middling consumer interest.  Those 1970 Super Football cards, while not as common as the '64 Giants, seem like they suffered from a lack of interest as well.

This is all preamble though, as we get to the meat of the specials.

1973 Baseball Team Checklists? Those were the blue bordered ones that almost no one seems to recall getting in packs that year. Now, were they sourced loose or from the extremely scarce perforated mail-in premium sheet?


Next up, the 1973 Baseball Candy lids.  I find it hard to believe but I've never really posted about these, or the actual lids at least. While surviving quantities are pretty high for a true test issue (I suspect regional tests vs. the old, semi-mythical Brooklyn candy store tests for these), they are somewhat tough, especially in nice shape. The little lift-up tab is usually found creased and bent and then the images are often horribly off-center.  This one's not so bad actually:


Moving along, here you could have purchased the eight-card '53 Reprint "set" that Topps mysteriously produced in 1972, allegedly for a banquet or gathering of some sort. It's a bizarre set, with misidentifications and a bewildering assortment of players.  Here's a proof sheet of the eight subjects from this difficult issue:


The 1973 "Baseball Cloth Sticker Sets" are the cloth versions of the 1973/74 Action Emblems, an abortive Topps attempt to circumvent the licensing of team logos from MLBPC. These are not well-known and I'm not sure if PSA even grades them. They seem to suffer from the adhesive being somewhat melty and gooey if not stored properly over the years:


Toward the bottom we have two inexorably linked sets (due to a common player selection) from 1973, the uber-difficult Baseball Comics and Baseball Pin-Ups.  I think they are also linked in a way to the Action Emblems in that they feature no logos. Either way, they are a really superb looking set:


I'm not sure why but the Pin-Ups are a little more available and survive at almost exactly a 2:1 ratio compared to the Comics, but make no mistake they are also extremely hard to find:


Concluding today's look back in wonder, we have the 1972 Cloth Baseball Stickers.  I think the reference to 55 being in the set is a typo, no one has seen more than the 33 known subjects in full, all neatly doubled in full array on this uncut sheet that displays portions of both slits. Some very tantalizing slivers can be seen too but I can't say undamaged stickers exist for these edge riders:


These are roughly as prevalent as the 1973 Baseball Pin-Ups, although it's worth noting those truncated stickers at the top of the sheet do turn up in their slightly decapitated form, as do all the others to a lessening degree.  This seems to have been a materials test, which was continued in 1976 before Topps finally got the formula down for 1977.

Topps had a couple of other dealers who helped send this stuff out into the world, like Bill Haber, who was a Topps employee just like Gelman but preferred selling things directly at New York City area collectible shows, which were not exactly in abundance at the time.  You really needed some expert timing to take advantage and realistically, it wasn't the average ten-year-old buying up all the test issues.

Saturday, March 9, 2024

All You Need Is Cash

Well, here's the last of the Topps Annual Reports that were dispatched to me last year by Friend o'the Archive David Eskenazi, covering 1983 (with a very interesting addendum).

1983 looked a lot like 1982, report-wise.  The cover is minimalist, yet effective:


The Nature of Business Statement expanded by a paragraph from 1982:


I'm not sure why these had to be so specific as the annual reports usually had enough detail to get the point of the various business ventures across.  To wit, here is page one of the Shareholders letter, bearing a lot of good news:


Thanks to BFF o'the Archive Jeff Shepherd, we can see what the Sweet 'N Low sell sheet looked like:


I'm not sure the product sold all that well as there seems to be a lack of surviving examples.
Otherwise, things were steadily moving onward and upward:

A number of accounting method changes litter the rest of the 1983 report, which is chock-a-block with tables.  I'm not sure if those changes had anything to do with this...


...but check these figures out. You can see why the Board of Directors was in favor of the merger (with itself!), as it was gonna make most of 'em all a lot richer:


Driving all of this seems to be a surge in the common stock price, which really took off after a two-for-one split in April of 1983:


Here's some quick math on the shares going to the BOD, using a pricing of 25 dollars per share.  Arthur T. Shorin's 850,000 shares would be worth a cool $21,250,000 once the deal closed. How about Sy Berger?  His 250,000 shares would bring $6,250,000 and he wasn't even on the Board! And this is in 1984 dollars. Multiply it out to 2024 and it's almost three times as much. Whew! You can see why this notice ran almost 80 pages as there was a lot of verbiage about how wonderful the merger would be for all shareholders. You can also see how valuable Sy Berger was to Topps.

Coming back to earth, we get a nice snapshot of the various Topps properties held at the time of the Special Meeting:

Proxy Statement Note 3 mentions it cost Topps $414,000 a year to lease the Duryea Plant but that title would pass to Topps once the lease expired in 1986, assuming the remaining payments were made. In other words, Lease-to-Buy.

The 1980's were a heady time for Topps, although the bubble would eventually burst (sorry, had to do it.)

Saturday, March 2, 2024

Gum Kind Of Wonderful

This will be the penultimate look at the four annual reports sent to me last year by Friend o'the Archive David Eskenazi.  The numbers can get pretty tedious with these things so I'll focus more on developments at the company and its business this time out.

The fiscal year ending on February 27, 1982 was a good one for Topps and its investors, a very good one in fact, as competition from Fleer and Donruss focused a lot of media attention on baseball cards.  The cover of the 1982 annual report continued the austere look of the past two years, although a significant upgrade in paper quality signaled prosperity was just around the bend:


For the second year in a row, Topps ran this little blurb on the table of contents page:


The technology described is non-specific but over the ensuing decades Topps would develop things for their own use then market them to the world at large as the nature oi their business evolved.

The 1982 Shareholder's Letter had all sorts of good news to share.  Sales had increased by seven percent over the year prior and there was a massive jump in working capital:


One of those new products mentioned would be the 1981 Baseball Stickers, which were followed by  a gridiron version in the fall. Leading off page two we see the Fleer anti-trust suit against Topps had run its course and that Topps had ultimately prevailed, sort of.  What this meant was that competitors could not sell their cards with confections in the packs.  This may not seem like a big deal but I'm wondering if it meant companies like Fleer and Donruss lost access to the traditional tobacco/confectionery jobbers that distributed a large portion of their cards.


Here's a little more on the Fleer suit and their  unsuccessful appeal to SCOTUS:


Fleer responded by pulling the gum and adding stickers to their packs:


While Donruss went with puzzles instead of the sticky stuff:


Here's the crunched numbers-the cost of sales at 67.3 percent was, if I'm not mistaken, pretty swank:


$2.79 Million in net income was an excellent result. The explosion in popularity of baseball cards was real and Topps was positioned better than any other company to take advantage, as we will see next time out.

Saturday, February 24, 2024

In Competition For the First Time

Continuing our look at the Topps Annual reports received from Friend o'the Archive David Eskenazi we come to the pivotal year of 1981.  The specter of competition is imminent (their fiscal year ended just around the time the first wave of  Fleer and Donruss cards started flooding stores) and there are some severe economic headwinds affecting the company but, as we shall see, the results were a little better than the dire financials from fiscal year 1979-80.

The cover was even sparser than the one from 1980 but they slightly upgraded to a semi-glossy stock for it, although the interior pages were still uncoated.  This is all it showed:


It took some ten weeks after the end of the fiscal year for the report to be compiled, printed and distributed; these days the lag is closer to three or four weeks and it's all digital. This letter led things off and offered some semi-good news but dig those last two paragraphs:


The plant in Ireland was vexing Topps and we will revisit that in a minute. The news regarding the "baseball card litigation" continued on the next page and we all know how that turned out:


The history of litigation between Fleer and Topps was a lengthy one but Topps had bought out some 4,000 Fleer ballplayer contracts in 1966 after the sole count of a Federal Trade Commission complaint that went against them was overturned. In 1967, Marvin Miller, unimpressed with the grip of Topps on his constituency, tried to steer the player's union to Fleer but they were not (yet) interested and it's worth pointing out the terms were quite risky for them.  By 1975 their outlook had changed significantly and as seen above, they made it to market with a set in 1981, as did Donruss. The market, and hobby, would never be the same.

Here's some numbers to crunch on:


Sales and profit were actually down form the year before but Topps was quite effectively controlling costs, as earnings per share turned positive again, although the planned sale of their Irish plant did not occur.


Here's some more on the Fleer litigation; it would seesaw back and forth for years; Topps was never shy about getting lawyers involved in their business disputes:

Donruss really just piggybacked on Fleer but that's how the bubble gum crumbles!  We'll take a look at how the competition affected the Topps bottom line next time out.

Saturday, February 17, 2024

Posterity For Austerity

Friend o'the Archive David Eskenazi, who has been sending me various care packages of Topps corporate goodies from time to time, recently sent another batch my way.  This time, the fully stuffed mailer was loaded up with Topps Annual and Board Reports, covering the fiscal years 1980 to 1983, a very tumultuous time for the company and the hobby at large. I've looked at the 1973-1976 Annual Reports previously, and since I have none from 1977 to 1979, let's look at 1980 today.  

For the fiscal year ending March 1, 1980 Topps laid a very giant egg!  You can tell things were off just by looking at the cover:


Yeah, that's not good.....let's let Arthur and Joel Shorin explain:


That's an excellent soft-soap job, I must say.  Lead with the bad news, then pile up some good news and sprinkle in some rosy projections!

As mentioned, I don't have annual reports (yet) covering fiscal years 1977-1979 but the 1980 Summary of Sales and Earnings recaps those years as part of its look back.  It's clear the prior years were all profitable, especially the one just prior:


Things were not looking good for the stock price as 1980 dragged on-dig that downward trend!  It looks like inflation took a big bite out of earnings:


I might have to rethink my previous snarky comments about Bubble Fudge! Reading on we see the  relationship between sales and operating expenses really affected things, which is no surprise. The Irish subsidiary mentioned below will loom larger as the Eighties progress but for now, all was hunky-dory across the pond:


I'll spare you most of the tables, but this one caught my eye as it mentions inventories presently on premises at the end of the fiscal year. Let's look at these figures:


Topps had a lot of raw materials on hand, given the amount of wax wrappers, cardboard and various confectionery ingredients required for manufacturing and production.  I assume these figures relate to the wholesale prices of Finished Products and Work-in-Process, which was usually a tad under 60% of retail. There was, of course gum in the wax and cello packs, and also on its own, plus football and hockey cards, non-sports cards and other things like Ring Pops, foreign sales, and on and on. With no breakdowns by product line available, pricing all over the place and a far-flung enterprise, it's a WAG on what that inventory number truly represents in terms of actual products but it looks like there was about $5.5 Million in retail sitting in various Topps warehouses on March 1, 1980 using my admittedly amateurish calculations.

If half of that was trading cards, then it's $2.75 Million in retail, or roughly $1.65 Million wholesale, or a whole lot of cases!

Signing off on this mess, we see some old familiar names and some new ones, changing, as BOD's do, as the years pass:


I'll get into the 1981 report next time out-things really start to get interesting in that one.

Saturday, February 10, 2024

Letters To Sy Over

I've recently been resuscitating a CD-R that was sent to me some time ago with thousands of scans covering Topps Vault items sold by them from 2007 to mid-2013 on eBay. Some of the files are corrupted at this point but I've managed to save about 70 percent of them. However, I cannot trace who sent me this wonderful time capsule so please ping me if it was you!

Some of the most esoteric items on the disc were letters sent to Sy Berger from 1993-95 thanking him for the $500 payments that secured each player's signed release for the Topps Archives (yessir) Official Reprint sets from 1994 and 1995, reprinting the originals from 40 years prior in each case.  There's nothing earth-shattering here but the letters are all handwritten and highlight some long-lasting friendships that Sy had formed over the many decades he was the Sports Director at Topps.

Here's one from Andy Pafko dated March 28, 1994, referencing the 1994 Official Reprint of the 1954 Baseball set:


Pafko would receive another $500 a year later for the 1955 Official Reprint set:


Don Mueller, who was nicknamed Mandrake the Magician for his uncanny ability to slap balls through the infield, sent this note on some really neat "Almost Original 16" stationery, which he must have saved from his playing days (did all ballplayers of a certain vintage get pads of these?).  The inclusion of the logos for the Orioles (the relocated Browns from 1954) and old Athletics elephant (the style shown here debuted for the 1954 season during their last year in Philadelphia) logos may point to 1954 for the stationery, kind of ties things together nicely!.



Ned Garver had some really sweet professionally designed stationery too:


Garver was handing over his check to a group founded by ex-Brown Chuck Stevens, who was the Secretary of the Association of Professional Ball Players of America (APBPA) from 1960 until 1998. APBPA offered financial and other assistance to down-on-their-luck ex-ballplayers. Stevens lived a long life and was the oldest living ex-major league player until his death on May 28, 2018.

Gene Woodling wrote Sy in 1995 and intimates there were some freebie boxes going to the players:


We'll end this fun look at old stationery with Phil Cavarretta, writing on his wife's:


These half-dozen notes really showed the human side of these five ex-players and how people from one rare profession really form bonds like those from any other profession.

And if you are doing the math, and assuming everybody got the same amount, then Topps had to pay out $124,500 for rights to the original subjects for the 1954 reprint (for 249 subjects as neither Ted Williams card was included thanks to his exclusive deal with Upper Deck at the time, and assuming the O'Brien's received $500 per O'Brien) and $103,000 for the original 1955 subjects rights.  1954 also saw  eight additional (and quite) crummy fantasy "rookie cards" Topps added to the mix for no good reason at all, so you can tack on $4K for those.

The Williams cards from 1954 could eventually be found in reprint form from both Upper Deck and Topps. Upper Deck, through some creative licensing arrangements, in their strangely titled but wonderfully executed three-card 1994 Upper Deck All-Time Heroes - 1994 Topps Archives 1954 set gave the world both reprinted Williams cards plus a fab ersatz Mantle.  I never copped a Mick, so forgive the scans here:



However I do have Williams reprints, but only one is from Upper Deck.  The other is from the 2001 Topps Archives set (nice ring to that!).  Let's go in reverse order, Upper Deck first for #250 and embiggened to show details:


Here's some mixed-up indicia for ya: 


Note the obverse follows the Topps reprint set as it carries a top border.  The 2001 Archives Ted Williams "Through the Years" cards on the other hand, did give us the original full-bleed top borders:


Looks a lot better, right?  However, Topps didn't use glossy white stock for the reverse and the result was decidedly murky:


So my 1954 Topps reprint set is a real Franken-set!