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Date: April 13, 1998

Locator: Marlton

Title: The Score Board”s Former CEO Is Up at Bat Again

Author: By Myra A. Thomas

Subject: A new company

jockeys for position in the crowded sports

memorabilia field.

The Score Board in Cherry Hill has been having some troubles. In December, co-founder Ken Goldin walked away from his post as CEO of the sports-memorabilia marketing and licensing company. Last month, the company filed for Chapter 11 bankruptcy protection after defaulting on a credit line.

Despite the problems at his former company, Goldin is hoping to pound one out of the park with a new venture called Goldin Sports Marketing & Licensing in Marlton. Not surprisingly, the new company will be doing much of the same thing that the Score Board does. In addition to sports-memorabilia marketing and licensing, the new company will handle corporate appearances and licensed product endorsements for professional athletes.

Goldin Sports Marketing & Licensing opened its doors in February, signing contracts with over 100 current and retired pro sports athletes. The company has already generated about $2 million in marketing deals for its clients. Goldin has also struck an agreement to handle the clients of Irvine, California-based sports attorney Scott Boras, who represents such well-known ballplayers as Greg Maddux of the Atlanta Braves and Bernie Williams of the New York Yankees.

Goldin is pitching some of his products on the shop-at-home network QVC, selling memorabilia for retired baseball legends Hank Aaron, Reggie Jackson and Pete Rose through exclusive agreements. Bill Anderson, vice president of sports operations for Shop At Home, another television shopping network, says, “Ken is extremely knowledgeable when it comes to the athletes and the value of the products in the marketplace.” The Knoxville, Tennessee-based network shows about 40 hours of sports-related merchandise in a week–about 10 hours of which is devoted to Goldin”s products.

While John F. White, chief operating officer of the Score Board, would not comment on Goldin”s new venture, he acknowledges that the sports-marketing industry is dealing with an oversupply of product and a crowded field of competitors. Those are some of the factors that led to the Score Board”s financial troubles.

The Score Board”s current woes seem a world away from the company”s high-flying days in the late 1980s and early 1990s. Goldin and his father Paul founded the company in 1986, taking the Score Board public a year later. Profits took a steep downward turn, however, after the elder Goldin died in 1994. Things were further complicated by a drop in demand for sports memorabilia. The Score Board moved from a profit of $10.5 million in the year ended January 31, 1994, to a loss of $33.8 million in the comparable period of 1995. Despite layoffs in 1995 and more vigorous marketing promotions, the Score Board couldn”t recover.

David S. Leibowitz, an analyst who follows the Score Board for New York City-based Burnham Securities, says that it is “premature to speculate on whether or not Goldin”s new venture will have any impact on the Score Board.” According to Leibowitz, the field of players in the sports-memorabilia business is already crowded. Such established companies as Carlsbad, California-based the Upper Deck and New York City”s Topps present formidable competition for both the Score Board and Goldin Sports Marketing & Licensing.

While Goldin would not comment on his reasons for leaving the Score Board, he did say that he would never be involved in a publicly traded business again. Says Goldin: “I enjoyed the Score Board when it was entrepreneurial, and I had a day-to-day impact on the company.” Goldin Sports Marketing & Licensing is wholly owned and financed by Goldin.

Goldin is entering a tough game with his new venture. He, as well as the many other competitors in the sports-memorabilia industry, will have to jockey for position in a field that has a shrinking number of clients. Many of the popular major-league players, the best candidates for marketing deals, are signing such high-priced team contracts that they are less likely to need the extra income from licensing and marketing memorabilia.

Despite the difficult environment, Goldin is optimistic about his “ability to maximize revenues in the marketplace and to give players a good deal.” Batter up!