Yankees icon Derek Jeter has started a trading-card platform, as the boom in sports collectibles attracts new investors.
The venture, Arena Club, will give users online showrooms for their card collections for the purpose of buying, selling and trading, Jeter said. Cards will be graded and kept at the company’s vault, with members given digital proof of ownership that lets them make deals quickly and without the need for shipping.
“It’s clarity, it’s speed and it’s trust,” Jeter said in an interview. “Building a community, that’s our No. 1 goal here.”
Jeter and Brian Lee, former chief executive of Honest Co., began working on the project a few years ago and launched it Thursday. It’s backed by venture-capital firms Lightspeed Venture Partners, Defy.vc and Bam Ventures, with total funding at about $9 million.
The collectibles industry has experienced immense growth in recent years. Investors are pumping money into the sector. Fanatics Inc. formed a trading-card operation last year that was last valued at more than $10 billion even before it acquired rival Topps in January. EBay agreed to buy marketplace TCGplayer for nearly $300 million in August.
Startups are popping up everywhere, too, such as Amazon-backed platform Dibbs and Alt, which has raised funds from the venture firms of NBA star Kevin Durant and Reddit co-founder Alexis Ohanian.
Arena Club’s management said it sees the grading aspect of the business as vital. Card grading is dominated by Professional Sports Authenticator, Beckett Grading Services and Sportscard Guaranty, which assess the collectibles and assign a number grade based on quality and condition. Lee said the company wants to add speed and transparency to the system with a new process that uses computer vision and machine learning.
“When you get your card back, [the main grading companies] don’t really provide a lot of reasons why your card gets a certain grade,” said Lee, who along with Jeter is an avid collector. “We’re going to be providing very transparent grading reports.”
Jeter has made several investments since retiring from baseball in 2014, getting involved with Blue Jean Networks video-conferencing and liquor startup Bespoken Spirits. His sports media venture, the Players’ Tribune, sold to ad-tech firm Minute Media in 2019. Last year, he joined the board of wealth manager Rockefeller Capital Management and this summer started the Greatness Wins sportswear label.
The Hall of Fame shortstop is figuring out the next steps of his career after stepping down as chief executive of the Miami Marlins and selling his stake in the franchise after running the team for nearly five years. For now, he said, he’s spending more time with his daughters at home. Does he see a future in baseball?
“I don’t know. I haven’t given it much thought,” Jeter said. “I’m pretty sure I’ll do something at some point, but my focus now is elsewhere.”
Staying current is easy with Crain's news delivered straight to your inbox, free of charge. Click below to see everything we have to offer.
Don't miss the chance to get the biggest news first! Stay connected to New York business news in print and online
Crain’s New York Business is the trusted voice of the New York business community—connecting businesses across the five boroughs by providing analysis and opinion on how to navigate New York’s complex business and political landscape.
685 Third Avenue New York, NY 10017 (212) 210-0100