CGC Cards Challenges PSA for Dominance in Sports Card Grading

Certified Collectibles Group (CGC), backed by Blackstone and Fanatics, is challenging PSA's dominance in the sports card grading industry. CGC Cards' grading business has grown 631% in the first half of 2025, with June setting a record for monthly graded cards. CGC plans to continue expanding, with Spiegel confident that the second half of the year will be bigger than the first. CGC's growth is fueled by its financial backing and ability to scale its business quickly.

Certified Collectibles Group (CGC), backed by Blackstone and Fanatics, is making significant strides in the sports card grading industry, challenging the long-standing dominance of Professional Sports Authenticator (PSA). CGC's sports card grading division, CGC Cards, has experienced a remarkable growth trajectory, with its business expanding by 631% in the first half of 2025 compared to the year prior [1]. This growth is particularly evident in June, when CGC Cards graded a record-breaking 570,000 cards, according to data from GemRate.com [1].

CGC Cards' president, Max Spiegel, expressed confidence that the second half of 2025 will be even more robust for the company. This optimism is underpinned by CGC's financial backing and its ability to scale its operations rapidly. Blackstone acquired the majority of Certified Collectibles in 2021 for $500 million, providing the company with substantial capital to invest in its growth [1]. The acquisition also included personal investments from notable figures such as Fanatics founder Michael Rubin, Jay-Z's Roc Nation, and several sports and private equity figures [1].

CGC's entry into the sports card grading market was strategic, capitalizing on perceived weaknesses in PSA's business model. PSA's parent company, Collectors Universe, had previously boasted about its backlog, which is generally viewed negatively by collectors and dealers. CGC saw an opportunity to offer a faster and more efficient grading service [1]. This strategy has paid off, with CGC Cards amassing 7% market share in the four years since its inception [1].

Pricing and turnaround times are key factors in CGC Cards' competitive edge. The company offers pricing starting at $17 for a single card, with a 30-day turnaround for the most valuable cards, compared to PSA's entry-level pricing of $24.99 with a 45-day turnaround [1]. Additionally, CGC Cards has established a retail strategy with Walmart, which stocks "Gems of the Game" packs containing one CGC-graded card. Furthermore, CGC Cards has opened a grading service at Fanatics Collect's Oregon facility, providing a seamless flow for cards sold on the Fanatics Collect website, with turnaround times of less than two days for some cards [1].

While PSA remains the market leader, CGC is positioning itself as a viable alternative. Spiegel believes that the market demands options to PSA, and CGC's ability to execute its strategy will help it close the gap between the two companies over time [1]. As CGC continues to expand its sports card services, it is also exploring the possibility of entering the sports memorabilia market, as evidenced by its acquisition of autograph specialist James Spence Authentication last year [1].

In conclusion, Certified Collectibles Group, with its robust financial backing and strategic approach, is challenging PSA's dominance in the sports card grading industry. CGC's growth and innovative business model position it as a strong contender in the competitive collectibles market.

References:
[1] https://www.sportico.com/business/commerce/2025/cgc-cards-grading-collectibles-blackstone-1234865659/