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The landmark suit also names 52 individuals who re-sold Patriots tickets via the StubHub service, and the Patriots seek as damages three times the revenue StubHub and the other defendants earned through the online sales of tickets to New England games, along with an injunction against further resale of Patriots tickets by StubHub.
The problem is that more than a few NFL teams currently are in bed with companies like StubHub, engaging in "partnerships" that indirectly funnel money realized via ticket scalping to owners. A high-level executive with one team defended the practice in a conversation with us several months ago, explaining that for fans of modest income the ability of a season-ticket holder to sell seats at a markup to one game per year makes the total package of tickets affordable -- and it helps other fans willing and able to pay fair market value obtain access to NFL games.
The practical consequence of the Patriots' lawsuit could be the disruption (if not the evaporation) of these partnerships, since the league will likely be forced to conjure a consistent policy for all teams as to whether business arrangements with scalpers in cubicles is desirable or permitted. The media also might begin to probe these transactions more carefully for evidence of abuse.
In September, for example, it was discovered that Cowboys-Eagles standing-room-only tickets were available on RazorGator.com, the Eagles' online ticket reselling partner, even though the tickets had not been made available for sale to the public. The initial suspicion was that the team was funneling tickets on a preferential basis to RazorGator. In the end, the fact was that RazorGator was selling seats that it had not yet acquired, prompting a cease-and-desist demand from the team.
But the mere fact that NFL teams do business with companies that are scalping tickets by high-tech means (and, as in the RazorGator case, allegedly taking improper liberties) should be a cause for alarm.
To date, the warning signs have been ignored. With the Patriots on the offensive against one of the leaders in the field, it'll be impossible (in our view) for the relationships between other teams and online scalpers to continue to escape scrutiny.
And there's another problem here that the team's legal action could inadvertently be exposing.
"What's the saying about people in glass houses?" said a league source regarding the lawsuit. "Do the owners really want people poking around about the re-sale of Super Bowl tickets? It might give exposure to something that most owners don't want seen."
Reports recently surfaced regarding a federal grand jury in Ohio, which is believed to be exploring the handling of Super Bowl tickets by members of the Browns organization. And one of the league's dirty little secrets, as we understand it, is that some owners realize huge windfalls through the sale of "packages" that include the most coveted of all sports tickets.
In the end, the lid could soon be blown off of these practices, due in large part by the efforts of one team to prevent third parties from doing the very same thing that NFL types have been doing with Super Bowl tickets for years.
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The suit could do a lot more damage than the article listed.
The teams set their ticket prices to do 2 things, cover costs and make a profit, and thats fine. But if the reason for high prices is fair market value or what the market will bear, they will be in real trouble. If it comes out that they funnel tickets to re-sellers who sell them at inflated values, and then form the basis for setting fair market value, then the owners are probably engaging in fraud.
The owners can set their ticket prices for whatever value they want, but it is the behind the scenes manipulation of the market that may get them in trouble.
Last edited by PatsFan-NH; 11-23-2006 at 01:00 PM..
The suit could do a lot more damage than the article listed.
The teams set their ticket prices to do 2 things, cover costs and make a profit, and thats fine. But if the reason for high prices is fair market value or what the market will bear, they will be in real trouble. If it comes out that they funnel tickets to re-sellers who sell them at inflated values, and then form the basis for setting fair market value, then the owners are probably engaging in fraud.
The owners can set their ticket prices for whatever value they want, but it is the behind the scenes manipulation of the market that may get them in trouble.
The way tickets sell, it's a really difficult argument to make that they're manipulating them high. The Krafts could probably charge $200 per ticket for every non season ticket seat and be sold out before the season started.
If the teams really wanted to crack down on scalping they'd just raise their prices. Scalpers exist because the teams aren't selling the tickets at what the market will bear.
Then again I don't know what the value is of ticket revenue that all comes in before even the first kickoff of the season, as opposed to revenue that trickles in as each game is played. Also I suppose security costs are less when you have the ability to punish someone by taking their season tickets away. Considering the history of security problems in Foxboro, I'm sure effective security as cheap as possible is very important. We are still the only group of fans in history that knocked down a goal post and carried it several miles away from the stadium as far as I know
I'm not going to stick up for ticket scalpers, but IMO, when a fan resells his tickets, the team got what they wanted for them, so how are they hurt? I went to the Vikings game and the tickets were bought on Ebay for more than face value and I was happy to get them. The Vikings already got what they wanted for them so how are the Vikings hurt by that? IMO, reselling tickets is a victimless crime. No one is forced to pay the higher price. The team got what they wanted for them. The buyer got what they wanted and the seller, too. If people don't want to pay ticket scalper prices, don't buy the dam things. Duh.
I'm not going to stick up for ticket scalpers, but IMO, when a fan resells his tickets, the team got what they wanted for them, so how are they hurt? I went to the Vikings game and the tickets were bought on Ebay for more than face value and I was happy to get them.
That's how I feel. I'll pay scalper's prices to go to a game once every few years, if someone makes a profit more power to them. If the Patriots want that money they can sell them at those prices and risk them going unsold.
And, of course, ticket prices are way too high..... and something needs to be done to control this exhorbitant use of legal theft from hard working people.
LOL. The first time a person buys a ticket at a price he hasn't agreed to will be the first. Maybe Congress should get involved
You buy the product at the available price or you forgo the product, it works across the economy.
LOL. The first time a person buys a ticket at a price he hasn't agreed to will be the first. Maybe Congress should get involved
You buy the product at the available price or you forgo the product, it works across the economy.
Actually it does happen that people buy tickets they didn't agree to, or at prices they don't want.
If you buy tickets at Ticketmaster, they use some new stupid computer routine that doesn't lock in the ticket being offered. I am talking about their outlets, not on-line. They offer you the ticket, you say yes and while the financial transaction is going through those tickets are sold somewhere else. What comes out of the printer are different seats than what you agreed to. They don't fix it either, you are stuck with it. I paid top dollar for great seats to a concert, and ended up with lesser seats. I might still have bought them, but not at the top price.
There are so many outlets working off the same ticket pool and things move so fast that they may even be offering tickets that are already sold, but haven't been updated as gone.
Patriots sue StubHub
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