POSTED 12:01 a.m. EST; UPDATED 12:45 a.m. EST, November 25, 2006
MORE ON PATS' SCALPING SUIT
We've rolled up our sleeves and tracked down some more information regarding the lawsuit filed on Tuesday by the New England Patriots against online ticket scalping company StubHub.
Okay, actually the stuff kind of fell into our laps but, hey, we take what we can get.
The action, as we understand it, isn't an effort by the team to attack the near-universal and long-standing practice of people selling tickets to sporting events for value greater than the price printed on the thing. Whether it's a guy with a computer or a laminated piece of cardboard with "I NEED TICKETS" in block letters, someone always will be looking to make a buck (or a few hundred) via the re-selling of seats.
The Patriots are focusing on a more specific dynamic -- the focused efforts of StubHub to induce season-ticket holders to engage in activities that violate their individual agreements with the franchise.
Put simply, the folks who have secured the ability to buy tickets to all Patriots home games agree not to re-sell the tickets at an increased price. For individuals who can't use their tickets to a given game, the team maintains a waiting list of folks who can acquire the tickets at face value, plus a relatively small service charge from Ticketmaster.
StubHub, we're told, was placed on notice of these contractual rights and responsibilities, yet has continued to induce season ticket holders to breach their agreements via specific advertisements in publications like the Boston Globe, which ads contain messages like "Are you a Patriots season-ticket holder who can't sell your tickets?"
The prevalence of the advertising efforts caused the organization to become concerned that the franchise is condoning the practice. The other problem is that some of the tickets bought and sold through StubHub are counterfeit. Per a source with knowledge of the situation, roughly 30 tickets per game purchased via StubHub end up being phony. And although StubHub eventually refunds the money, the consumers typically must jump through multiple hoops to make it happen.
Thus, one of the claims in the lawsuit is that StubHub has tortiously interfered with the team's relationship with its season-ticket holders, and the primary goal is to get the company to stop the practice. Any damages recovered will go to the Patriots Charitable Foundation, not to the team itself.
With all that said, the decision of the Patriots to pursue the action against StubHub creates a real risk that the media will begin to scrutinize more carefully the involvement of teams in the scalping of tickets -- including the widespread manner in which some teams turn profits on the sale of Super Bowl seats. But it appears that StubHub backed the Patriots into a corner on this one, and it should prompt any NFL team that maintains a relationship with StubHub to re-examine the wisdom of dealing with a company that might have provoked a course of action that, depending on how the dominoes fall, could eventually make it harder to realize those late January windfalls.