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A couple of weeks ago there was a story that received relatively little attention. The Red Sox opted out of the agreement between Major League Baseball and StubHub, and decided they were going to use Ace Ticket as their official ticket reseller...

MLB Once Again Making Money at the Expense of Fans

by Stew Winkel (Columnist)

3

976 reads

Sports

March 14, 2008


A couple of weeks ago there was a story that received relatively little attention.   The Red Sox opted out of the agreement between Major League Baseball and StubHub, and decided they were going to use Ace Ticket as their official ticket reseller.   

Of course a different name for ticket reseller is ticket scalper (or as Jerry Seinfeld would call ticker resellers, “you know, the guys, that uh, they sell the tickets for the sold-out events).

Am I the only one who is bothered that Major League Baseball has an official online ticket scalper? 

I give the Red Sox some credit for using Ace Ticket instead of StubHub, as Ace Ticket at least sets a price for the tickets to keep the cost burden under control, where StubHub prices are a free for all.  But should there be any deal with any such ticket reseller? 

On the back of Red Sox tickets, and I have to assume most tickets, is clear language that these tickets are not to be resold.  How does baseball justify placing that language on tickets and then signing deals to have a company as the official ticket scalper?

I understand reselling and buying tickets on the web is very common and it is big business.  I also know that, especially in baseball with 162 games, teams would find it highly difficult to monitor and limit the reselling of tickets.  Online ticket brokers are here, they aren’t going anywhere.  Major League Baseball probably believes if all of that is true, shouldn't baseball get theirs.

Bud Selig continues in his position simply for his ability to bring in revenue, as he is a failure in most other aspects of his job.  He sees an opportunity here to make money on both ends – first, when the tickets are originally bought from the teams, and then again by cutting this deal with StubHub.  But by making the deal, encouraging and promoting the use of StubHub, MLB is an accomplice in driving up the price of tickets and forcing the average fan to spend even more money just to get to a game.

Last October, fans complained about the lack of availability of postseason tickets.  What did MLB do to help?  Did MLB cut back on the number of tickets handed out to the stars of the pick-your-favorite Fox tv show?  Nope – it said there is nothing wrong with reselling tickets and told fans to go to StubHub.  

Face value for many tickets can be high enough.  More often than not, though, if you want to go to a game, you can’t buy tickets at face value from the teams – you have no choice but to get online at either EBay or a ticket broker.

MLB may argue that these ticket resellers give fans the opportunity to buy tickets to sold out games, and that without them, many fans would not have a chance to get to a game.

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3 comments Last one added about 1 year ago — Leave a Comment

  1. ...

    I do not see the difference between being a ticket scalper and being a ticket broker, except that the industry is now being tracked and taxed.

    Fans get screwed by both. How is this 'business' allowed to even exist?

    The teams and/or the artists are not seeing any benefit as far as I can see.

    This is a peripheral industry that is providing a 'service'.....a self-serving one

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    Unless there is demand there is no business. This is America, people spend their money on what they want and don't like others telling them they should do something different. They are also free to resell pretty much anything they own for whatever buyers are willing to pay them. Why are tickets different?

    You also seem to assume that all MLB tickets are resold above face value. This is not true. Generally in the summer when season ticket holders are on vacation, prices drop as there is a lot more supply. Also when teams don't do well, prices drop. Prices are set by supply and demand. Econ 101.

    Before online reselling, with its guarantees and customer service, your only option was street scalpers. That was better?

    Why shouldn't the team be able to have a reselling partner/sponsor? I guess haters of alcohol consumption and fast cars don't want those team sponsorships either. This seems highly preferable to having the team raise the original ticket prices.

    There is a reason that almost every state has eliminated their prohibition-era scalping laws and all the teams and leagues have signed sponsorship deals. The fact is fans are going to sell and other fans are going to willingly buy. There is a demand for the service. If the fans use scalpers or other services without authenticity guarantees, it is the team that deals with the problem at the gate.

    Your hypothesis that professional resellers are to blame is also flawed. Marketplaces like StubHub, eBay and Craiglist are exploding because individuals are cutting out the middlemen.

    Nobody has a gun to their head here.

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    What angers me the most is that people can just sit at their computers hundred of miles away and buy/resell tickets to my local venues. I should not have to pay someone in Texas for tickets to a Washington Nationals game! Are the days of cheap tickets over?

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