Could an Alternative Auction Format Maximize Returns for Consignors?

Today, most sports card auction houses operate using a familiar formula. Auctions open at a scheduled time with low starting bids to spark competition. Bids rise in predetermined increments, usually tied to a scale based on the current price. When the auction “ends,” it actually enters extended bidding: anyone who has previously bid on an item can continue placing bids until a certain amount of time passes without a new bid. Then, the item finally closes.

Afterward, the auction house tacks on a buyer’s premium, typically 20–25%, to the final bid price. That’s how they make money. Some even take a cut from the consignor’s side, too.

While the specifics may vary slightly from house to house, the model is largely the same: launch, bid, extend, close.

Auction houses profit no matter the final price. But here’s the real question: Are they truly maximizing results for consignors?

A few years ago, I read What It Takes by Stephen Schwarzman, the billionaire founder of Blackstone. In it, he describes a widely used method in the financial world: the two-round sealed bid auction. It’s designed to do one thing exceptionally well: drive bidders to offer the absolute highest price they’re willing to pay.

Here’s how it works. In round one, each bidder submits a bid in a “sealed envelope,” unaware of others’ offers. Lowball bids are eliminated. In round two, the serious contenders see the range of offers and submit one final sealed bid. It’s a system built for maximum urgency and top-dollar offers.

Now imagine applying that concept to sports collectibles, especially high-end items. The potential upside seems clear: the chance to push serious bidders to go all-in. I believe an auction house that experiments with this format, or even just offers it for select premium lots, could stand out in the crowded market and attract more consignors eager to maximize the value of their items.

So what do you think? Could a two-round sealed bid auction work in the sports card world? Drop your thoughts in the comments. I’d love to hear them.

Happy collecting!