Oct. 31, 2025
        
        Ryan Stuczynski of Gemrate is back "Weighing in on the terrain" E360
 
    
    
    
        
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Sports guard Nations, Hobbies, the People, Wheely News and Interviews.
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It's you on number one song, Sportscarnations, hobby is the People, spawns.
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Garnation, What is up? Everybody? Episode three sixty sportscard Nation
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Coming your Way, Part two of our great conversation with
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Ryan Sezinski from gem Rate, and we're gonna tackle This
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episode is gonna be uh part two and longer than
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part one, and we're gonna tackle a lot of different things,
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including his takes on what he thinks going on in
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the grading market. Is it is it a junk slab
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era as some people say? What did he think of
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collectors buying or acquiring SGC? Does he think the end
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is near? Foreshg. He's going to weigh in on that.
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And you know, as great as the work he does
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with jem Rate, he doesn't you know, those reports don't
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give kind of his feelings. So that's great. You know.
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That's what's great about having him on, is we get
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really how he really feels or what he thinks is
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going on. So it was great catching up with him
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after a couple of years, and again we'll have him
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back on sooner. The next time he comes on but
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that's this week's episode, so let's get to it, all right.
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It is the conclusion of our conversation with Ryan Stizinski
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from jem Rate, and we're going to start out here
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talking about what he thought when he heard the news
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that Collectors had acquired SGC. Grady. You know, I obviously
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I love your emails, I love the report itself. But
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the one thing you don't get with that, right is
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your opinionion. It's it's sort of it's data, right. So
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I want to I don't want to call it the
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hot seat, but you know, I want to get your
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your you know, Ryan Cezenski's opinion when that acquisition was announced,
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when Collectors acquired, as you from a from a personal aspect,
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you know, what were kind of your thoughts on when
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that news broke.
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You know, as somebody that lives and breathes just every day,
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I was caught off guard by it, you know. And
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I feel like I'm reasonably in tune with what's happening.
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You know. Again, I talked to the teams enough where
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I feel like I'm cludeding to sort of certain initiatives,
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and I was caught off guard by that and that
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that sort of meant a couple of things. One is
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it sort of happened pretty quickly, at least in my mind,
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and again it may not have ultimately, but just a
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lack of sort of whispers or visibility into that was
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really surprising because I just figured it would have crossed
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my desk at some point, and it obviously didn't. It
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felt like a defense measure by PSA slash collectors when
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it happened, and it felt like, you know, you were
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hearing a lot of sort of chatter what it might
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look like for fanatics to get into the grading space,
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and so I personally thought it was more of like
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a hey, let's just do we need to do to
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sort of quiet this. We'll make SGC work for us.
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There's certain synergies and overlap that makes sense for us
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to onboard no matter what. There's sort of a floor
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here that's pretty well understood, and let's sort of get
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to know and better understand the SGC brand is a
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part of this, and so I just felt like a
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logical way for collectors to sort of quiet sort of
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the competitive chatter from what it might look like for
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another massive player in the space to bring grading on
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board and scale at a pace that maybe can only
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compete with you know, only a few people could compete
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with PSA. And yeah, so anyways, I think they just
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explored what they might look like and at the same time,
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it was one where they figured they could onboard greaters,
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you know, in a way. Grading is a challenge, you know,
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when we talk about Beckett earlier, Like Beckett is one
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of the reasons that they haven't grown as much as
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people wish they would have over the years is they're
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just very particular and like their grading style and like
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it's just very hard that we take for granted how
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easy it is to sort of fill these grading roles
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and what it means to train these grads and sort
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of you know, have people sort of advance or sort
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of filter out as or flow out of the you know,
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the onboarding process. And you know, that was another way
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that I think PSA could rationalize sort of making that acquisition.
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So I think it was one that you know, the
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short answer is that I think it was defensive. I
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could be completely wrong there. I have no visibility or
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insight into that, and I think it was one that's
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productive for them ultimately in a sense that they learned
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a lot and they've picked up a lot of you know,
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visibility into what was working over there. But you know,
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ultimately the direction they've gone in is that they're sort
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of minimizing that brand instead of investing in it in
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a way that might compete with you know, PSA a
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bit more or sort of provide people with that second
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option at scale. And you know, ultimately it just feels
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like they kind of have landed in the place where
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I do feel like it was a bit of a
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defensive measure and they kind of kick the tires on
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what that could mean for them, but ultimately landed in
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a place where you know, they're sort of prioritizing the
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PSC brand, which again not surprising, but sort of really
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suppressing the SUC brand in the process, which is frustrating
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for a lot of people.
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Yeah, I mean, I'll guess I'll wear that hat as
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as you know, the full disclosure. They sponsored this podcast
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and they're good for the rest for the rest of
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this year, and I'm still am a folks over for them, right.
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I just had to adjust my rates as they've made
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the discount rate go away, and you know, people come
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up to my table at the show and and they
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asked me, you know, John, you know, and they know,
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some of them know, like my relationship, how far it goes?
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When they're like John, I'm here and this is gonna
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be the end of them? And uh, you know collectors
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or you know, they usually say PSA is gonna phase
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them out and and and that sort of thing. And
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I ultimately, I hope that isn't the case. I don't
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have a vote or a say, but I mean, you
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know we're talking to year from now is see it?
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You know, we'll again. We can speculate all we want
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right until it have but a year from now, is
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STC still exists as a grading company?
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I think so. I think what Ryan Hoape said over
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the summer is sort of the course that they're going down,
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which is, you know, I think he was very candid
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and didn't really shy away from the idea that look
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where boutique means something to us. And he gave a
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specific period of time which was like twenty sixteen twenty
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seventeen levels for SGC as he sort of envisioned where
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things might return to. And if you can look back
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at the data and some of the you know, comments
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that were made back then, they were only doing you know,
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twenty to thirty thousand cars at that time, So I
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think they're going to exist. I think they're going to
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sort of service a diche around vintage really well. I
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shouldn't even sort of overstate that. I just think they're
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going to service that. Hopefully they do it really well
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and that sort of continues to sort of carry them
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through and have significance for the hot or play a
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significant role for the hobby. Even for those people that
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were it's like their sweet spot and they love that
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brand and they want the consistency and the uniformity of
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having that's continuing forward. So I think they're still around,
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but I just think they're not going to do, you know,
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the things that sort of help them excel. The last
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couple of years was doing top specials and things like
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that where they were grading fifty thousand cards from the
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same set, right, which is one great for them because
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they can, you know, the catalog of cards are seeing
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is pretty limited and the volumes really you know, fantastic
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for them for a short period of time. They're just
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not going to do that stuff anymore. So I think
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they'll still be around, And I also think it sort
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of has this long tail impact of when you think
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about how people price cards and slabs that they're in,
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you know, to degree you don't think a company is
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going to be around impacts the slabs. And so if
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you think that a company becomes less and less relevant,
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the slabs do take a hit one way or another.
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I think people just sort of devalue companies that sort
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of disappear. And so to the degree that they can
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sort of even if they're only grading twenty thousand cards,
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but they're grading them really well, it still helps the
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equity sort of sustain that these were really solid grading
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foundations that continue to exist. The proof is still sort
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of being delivered on every day. And so if I
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was sort of sitting in their seats at the collectors
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you know table, I would think that that's the play,
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which is just let's give them a little bit of
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room to operate. If something jumps sort of there's some
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certain places where they start to sort of surprise, or
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there's outliers for what they're seeing versus what we're seeing
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sort of at the scale unit of collectors and PSA,
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then they could take note of it. But ultimately I
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think they're just going to let sort of their loyalists
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continue to lean into their sort of leveraged SGC, but
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like really limit the resources that they devote to it.
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Yeah, well, listen, great points, great points. One thing I
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want to like a point you made that I think
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people forget about, right, Like having the brand still exists, right,
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affects the cards that have already are in those slavs,
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right if that brand goes away. We've seen that with
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other brands that don't exist anymore, like out of sight,
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out of mind, and then obviously that's going to effect
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the value of any card encapsulated. So like to me again,
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and I like you, I don't have any sort of
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inside or trading knowledge or anything like that, but I
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just don't It wouldn't make a lot of sense to
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just get rid of SGC. From collector's standpoint, I mean,
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I can, I guess you could make both points for
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both sides, but uh, something they would own would lose
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value even if even if they didn't want it to
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exist anymore. And listen, you know, right, depending on the month.
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And I know it's been a bad trend lately for SGC,
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especially looking at the gem rate numbers, but you know,
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at one point they were one and two, right, and
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that really wasn't that wasn't necessarily debatable if they making
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an announcer, Hey, sgc's going away, this is the last
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day to sow many cards and then that's it. I mean,
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there's always gonna you know, we can we can say
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but PSA is gonna be hard to knock off that
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number one perch. But there's always good someone's always going
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to be number two, whoever that might be. You know,
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they they phase out SGC, and I think CGC walks
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right into the number two spot on chat you know,
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un chat today again, six months from now, a year
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from now, two years from now, you know, like you said,
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things can change. But they would really open up the door,
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Like the competition is not going away when you it's
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just like it's like college football ranking. The team gets
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knocked out, someone else is moving up into that slot,
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so you're sort of opening. To me, it would be
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really opening the door. Even some would argue Ryan that
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the PSA sort of opened that door already somewhat to
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other for other companies. But you get rid of SGC.
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I think they're just opening the door wide open. Rather
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than a crack or a smith so you know, kind
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of your thoughts piggybacking off of what I made.
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Yeah, I mean I think what's I don't know, ironic's
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the proper word here, But just like intriguing is that
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SGE gave the playbook away. And you know, if you
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are it's not an easy sort of switch to flip.
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But you know, if you want a counter the PSA,
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we're going to help make everything liquid after we grade it.
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Part of the equation which is a long part of
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the equation right now, because the key component there is degrading,
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equation is extending and so the windows are growing. Like,
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if you really want to shrink and improve liquidity for people,
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you get cards back to them as soon as you can.
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Like that's the ultimate way to improve liquidity is get
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people their money or their cards back as quickly as possible.
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And if you're sitting in the CGC or the you know,
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the Beckett seats and offices today, you know you try
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to think about, how do we really think about ways
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to improve our turnaround times? And one of the ways
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that SEC was able to do it very thoughtfully was
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to do these promotions which sort of really limited you're
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not seeing every football card come in the door. By
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doing a football promotion, you're not doing a vintage special,
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You're not doing a nineteen ninety special. You're doing these
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specials which are really narrow and allow your team to
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create a lot of the same cards and not have
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to spend as much time in the research and ID phase.
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And it's just you're grouping a lot of stuff together                                                                                                                                                                                                                                               
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