Transparency is a hot-button issue in the collectibles industry, and it’s the reason behind Fanatics Collectibles’ recent decision to pursue an independent audit of its card distribution processes. Aiming to address longstanding questions about fairness and randomness, particularly focused on the distribution of high-value cards, the company has engaged the reputable audit firm KPMG.
The announcement was made during the Industry Conference held in Atlanta, where CEO Mike Mahan shared that KPMG, after several months of careful examination, had affirmed Fanatics/Topps’ guarantees of randomness in high-value card distribution. According to the audit findings, the company’s procedures effectively prevent any intentional placement of high-value cards for specific customers.
Issues regarding potential preferential treatment by Fanatics/Topps have long stirred debate in the collector community. For years, rumors circulated suggesting the company was favoring large-volume customers or renowned breakers. Social media has only added fuel to the fire: videos posted online of big-name breakers unboxing multiple high-value cards sparked serious speculation about the randomness of pack contents.
However, Fanatics Collectibles CFO, Greg Abovsky, has sought to set the record straight. He explained that the frequency of high-value pulls by these major players is more a result of probability through volume than manipulation. Essentially, these top-tier breakers deal with vast quantities of cards, naturally increasing their chances of landing a big-ticket item.
As part of the audit, KPMG carried out a comprehensive check at Fanatics’ Texas-based printing facility, where the cards are produced. The reputed audit firm dissected the collation process, carefully examining production logs for each job. Their goal was to ensure that Topps’ claims of randomness in card distribution were genuine. This was an industry-first initiative.
With this audit, Fanatics hopes to dispel rumors and confirm the integrity of their card distribution process to the collector community.
Abovsky also addressed another prevalent speculation among collectors – the deliberate seeding of boxes with valuable cards for promotional purposes. He was clear-cut in his denial, assuring the collector community that Fanatics has never resorted to such tactics.
Pursuing transparency further, the company plans to make this randomness audit an annual event, aiming to continually reaffirm their commitment to fairness. This recurring scrutiny is a testament to Fanatics’ efforts to establish themselves as a transparent player in the sports card industry.
This development, while crucial for Fanatics, also raises the bar for the entire industry, providing reassurances to collectors and dealers. With the seal of approval from a reputable auditing firm like KPMG, it serves as a reminder amidst the growing trend of collectibles that transparency is key to maintaining trust. After all, it’s this trust that keeps the collector community thriving.
