PSA faces collector backlash after grading problems at national convention in Rosemont

ROSEMONT, Ill. - The National Sports Collectors Convention drew thousands of collectors to Rosemont last weekend, but one of the industry's largest card-grading companies is now facing backlash.

Some customers say Professional Sports Authenticator, better known as PSA, failed to deliver on-site services within the promised timeframes.

In a statement to FOX Chicago Thursday evening, PSA apologized to affected customers and said submissions increased 160% compared with last year.

The controversy comes as PSA faces broader scrutiny and legal challenges over its business and grading practices.

PSA faces collector backlash after convention in Rosemont

The backstory:

PSA is one of the world's largest and best-known card authentication and grading companies. 

Collectors attending the five-day convention in Rosemont paid hundreds of dollars per card to have their collectibles graded by PSA and returned before the event ended. Some same-day services cost as much as $699 per card, with an estimated four-hour turnaround time.

However, by the end of the convention's opening day, overwhelming demand forced PSA to "suspend its on-site Express submissions."

In an online post, PSA wrote: "Due to this volume, your submission may extend beyond its estimated turnaround time."

Customers whose submissions could not be completed at the convention were told their cards would be mailed back, frustrating some collectors.

"If your Express submission is not ready by the end of the show, we will provide expedited post-show grading at a reduced price of $115/card, with free return shipping and an estimated two-week turnaround time from show's end," the company's post stated. 

"It's not unusual, but they were definitely inundated with the crowds that came in," said Ronnie Holloway, owner of Elite Sports Cards & Comics. 

Holloway owns and operates two stores in Chicago — one in Ravenswood and another in Belmont Heights. He says he isn't surprised by the major turnout at the convention and the massive influx of PSA card-grading submissions. 

"You have to think as if it's like, 'Hey I'm going to the Super Bowl.' It is the biggest event in sports when it comes to collecting cards and so forth," Holloway said. 

At the convention, Holloway's booth was across from PSA's booth. He does not work for the company but is a certified PSA dealer.

He says the demand clearly overwhelmed PSA, but believes the company worked as quickly as possible to meet that demand. 

"I don't see it being any different than any other show except the lines were longer," Holloway said. "I think it was a little overwhelming, yes. The capacity was there, where, hey we got hit with a higher capacity than expected as the National has grown, but they were able to fulfill 90% of acceptance within the Nationals itself."

Dig deeper:

Prior to the convention, in late May, PSA announced that due to a rapid surge in demand, it would be pausing submissions through its lower-cost value tiers.

It also launched a backlog tracker for collectors to monitor their submissions.

Meanwhile, the company is facing growing legal action. In one lawsuit out of California, card collector Steve Lichtman accuses the company of acting in bad faith and engaging in fraudulent business practices. 

Separately, PSA has been named in a proposed class-action lawsuit out of Maryland that claims misleading marketing and inconsistent grading practices.

Card collector Maxwell Gaulin says his experience with PSA has generally been positive, but recent controversies have made him more hesitant to use the company.

"Basically, they realized, 'We are in deep, we have way too many cards to grade, way too many cards in the backlog.' Their turnaround times have just been increasing. So they said, 'We're going to shut down for four months. We're going to extend everyone's memberships that have memberships and we are going to try to get caught up in that backlog,'" said Maxwell Gaulin, a card collector. "To be honest with you, a lot of my friends have been a little bit dubious about using PSA over the last year or so. They also have been doing things like, they just bought one of their biggest competitors, which is something that put me off in particular. I think that competition in this space is really good."

What they're saying:

On Thursday evening, Ryan Hoge, president of grading for Collectors Inc. and PSA, issued the following statement to FOX Chicago: 

"The demand for grading at The National exceeded our most ambitious projections, with submitted items up 160% from last year. When we saw demand exceeding our capacity at the show, we adjusted service levels. First, by closing our lowest tier of on-site service, and then by not accepting any additional on-site grading submissions, while continuing to support those at the show by accepting orders that would be graded at our facilities and shipped back to our customers following the show.

"As a result of those service adjustments, we were able to grade 99.5% of items submitted for on-site service. And to those customers for whom we were unable to complete same-day or next-day on-site turnaround, we apologize and have provided reduced-price service levels with free return shipping.

"Going forward, we will always look for new ways to innovate and serve the hobby in person and on-site at shows we attend, because we understand the importance of these services to all collectors, from dealers to someone who just found a card they’ve chased for years."

What's next:

Unrelated to PSA, the Rosemont Police Department confirms it is investigating the theft of a Patrick Mahomes card valued at an estimated $15,000.

Video circulating online appears to show a man and a young boy removing the card from a display case at the convention.

Anyone with information is asked to call Rosemont police at 847-823-1133.

RosemontNews