The Future of Baseball Cards as Investment Stock
In recent years, blockchain and cryptocurrency technologies have disrupted many traditional industries. The trading card industry seems poised to undergo significant changes as well with the rise of digital collectibles and so-called “stock baseball cards.” As physical cards lose value over time due to factors like condition and player performance, some investors and companies are exploring new models that could keep card values appreciating well into the future.
Much like traditional stock shares represent fractional ownership in publicly traded companies, these proposed “stock cards” would function as securities that track the future performance and pensions of players. Rather than showcase a static snapshot of an athlete at a single moment in time, stock cards would maintain value tied directly to how that player’s career unfolds. As the player succeeds on the field and earns more money, so too would the stock value of cards bearing their likeness. Likewise, injuries or declines in ability would negatively impact card values just as traditional trading cards depreciate when attached to fading or retired players.
Proponents argue this framework could turn baseball cards into a true long-term investment rather than merchandise subject to the whims of collectors’ markets. By directly coupling card value to quantifiable future earnings, the risk of losing value would be mitigated compared to physical cards at the mercy of condition grading and fluctuating demand. Even heavily used or damaged stock cards would retain value as long as the player is active and productive. A stock system could potentially attract a wider range of mainstream investors beyond hardcore collectors.
Several startups have emerged exploring the potential to tokenize player performance via distributed ledger technologies like blockchain. Socios.com has partnered with various sports leagues and teams to issue “fan tokens” representing fractional ownership tied to voting rights for certain club decisions. Another firm, Dapper Labs, is responsible for the popular NFT league Top Shot highlighting short video clips of NBA highlights. But neither have yet formulated models tracking long-term athlete compensation in the scope of stock cards.
One novel concept proposes issuing digital stock cards on the blockchain as non-fungible tokens (NFTs) backed by smart contracts programmed to adjust in value relative to stat-based milestones and salary figures for each player over their career. Holders could track appreciating value through online block explorer interfaces much like shares of publicly traded companies. Factors like All-Star appearances, awards, wins above replacement (WAR), and annual salary could roll into formulas periodically rebalancing token prices up or down each season.
For retired players, smart contracts might peg residual long-term value to career earnings, Hall of Fame inductions, broadcasting contracts, or other legacy accomplishments. This ensures stock cards maintain value well after uniform numbers are hung up, creating a truly perpetual collectible. The model could even incorporate dividends paid out to token holders when certain statistical or earnings thresholds are achieved, adding real utility beyond loot box scarcity.
Such complex financial systems built atop public blockchains present numerous regulatory hurdles that have largely stalled mainstream adoption. Securities laws vary widely by nation, and virtual assets blur traditional definitions of securities that determine appropriate oversight. Cryptocurrency itself operates in legal gray areas globally. Issuing player-tied blockchain tokens or smart securities could classify as regulated securities offerings requiring approvals that daunting startup costs.
Promoters also face inherent challenges quantifying every intangible variable impacting player success into mathematical formulas. Injuries, circumstances out of players’ control, and unforeseen career trajectories complicate establishing reliable projections. And MLBPA involvement would be necessary to license player data rights into such financial products, complicating negotiations. Despite interest, no single solution has emerged as attractive for all involved parties.
Whether through blockchain, traditional securities, licensing agreements or alternative structures, incorporating elements of player performance tracking into baseball cards opens up intriguing possibilities for the collectibles industry. If regulatory and commercial partnerships can be established, stock cards backed by quantifiable future performance could revolutionize trading cards from a fleeting hobby into a legitimate long-term holdings. But many unanswered questions remain before such futuristic concepts have room to develop. For now, physical cards retain their nostalgic charm alongside growth potential, even if new digital models continue circling on the distant horizon.
While the stock baseball card concept presents an appealing framework to appreciate cards as long-term investment holdings, numerous regulatory, technological and practical challenges must still be addressed before such futuristic ideas could become reality. Establishing appropriate oversight, quantifying volatile athlete variables, and balancing interests between issuers, collectors and players’ associations would require extensive cooperation between government, financial experts, and sports industry stakeholders. Whether as blockchain securities, traditional stock, or alternative structures, incorporating athletes’ future earnings potential could revolutionize the trading card industry. But for the present, physical cards continue reigning amid promising signs of where digital innovation may someday transform the collectibles space.
