Thursday, February 12, 2009

Upper Deck Loses NBA License Thanks to Greed

Wow!! Talking about opening your mouth and inserting your foot. In turns out that it was Upper Deck's idea to get the NBA to agree to an exclusive licensing deal, ala the NHL agreement, which would have resulted in UD losing there only competition in the market (Topps) in a second sport. Instead the whole plan backfired when the NBA saw how lucrative this could be and agreed. Then Panini comes in willing to spend what UD wouldn't and know UD is out.

This is a quote for UD Chirman Richard McWilliam from an email to UD's Diamond Club VIP list.

“As many of you are aware, the NBA trading card market has been in a state of steady decline for the last five years,” McWilliam wrote. “Significant revenue losses and eroding profit margins led to an unsustainable business model. Based on the success of our exclusive relationship with the NHL and NHL Players Association, we encouraged the NBA to consider an exclusive licensing relationship for their trading card business, and we aggressively lobbied for Upper Deck to be that exclusive partner.”After negotiating with the league, McWilliam said his company could not reach an agreement with the NBA on the “financial value of an exclusive license.”

This was first reported here by SCD.

Serves them right. That whole NHL deal still ticks me off. I thought a monoploy was illegal.

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