Sports Memorabilia - An Alternative Asset?

If you held onto your baseball card collection from childhood, it may be worth more than you think. Since January 2021, the record for the highest-selling sports card has been broken three times, most recently when a mint condition 1952 Topps Mickey Mantle card sold at auction for $12.6 million USD. The card was purchased in 1991 for $50,000 USD. That’s a compound annual growth rate of 19.5% year over year.

It’s not just sports cards, though. Jerseys, contracts, and other memorabilia from iconic sports stars are being sold and bought for millions. Michael Jordan’s 1998 “Last Dance” jersey just sold for $10.091 million USD.

With eight-figure price tags, it’s worth checking your attic for any dusty card boxes. But if you aren’t sitting on a gold mine already, should you invest in sports memorabilia now?

Before we dive in, investing in sports memorabilia is not the only way to diversify your portfolio. If you haven’t yet, consider the investor accreditation program. Investor accreditation grants you access to invest in other alternative assets, such as hedge funds and private equity, which could allow you to tap into a variety of new investment opportunities.

The Dos and Don’ts of Investing in Sports Memorabilia

Sports memorabilia can be an attractive alternative asset. It has outperformed the S&P 500 in recent years, is a growing market, and has the potential to outshine other alternative asset categories as well, such as art, gemstones, or fine wine.

However, investing in sports memorabilia does come with important disclaimers. It’s critical to understand the value of what you have, connect with the right partners to be able to liquidate the investment when necessary, and do thorough research.

If you already own valuable or potentially valuable sports memorabilia, it’s critical to treat it like the asset it is. Talk to your financial advisor about the items or collections so they can account for them in your assets. Should you hold onto these assets for life, it’s important that your family knows their value. Additionally, should you want to sell any of your memorabilia, a financial advisor may be able to connect you with the right appraisers, dealers, and auction houses. Liquidizing memorabilia can be difficult, but establishing these connections can help.

Before you plan to sell, always get a second opinion. At the end of the day, sports memorabilia is only worth what someone will pay for it, but the price you get from the first buyer may not represent the item’s potential value to someone else. It may also pay off to have any signed items authenticated. This can help bolster the value and expedite the resale process.

If you are passionate about collecting sports memorabilia or desire it for portfolio diversification, the right memorabilia can be a worthwhile investment. However, some memorabilia can be worthless or lose its value, so it’s critical to do your research. Follow the above tips to ensure you make smart decisions when investing in sports cards, jerseys, signed balls, contracts, and more.

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