Victimless Crime of “Ticket Scalping” Now Legal
Submitted by CARPE DIEM
Philadelphia – As you might expect, scalping isn’t a term used much anymore. The buzzword is “secondary ticket market,” and all over the entertainment and sports industry, business is booming, turbo-charged by the technological advances of recent years.
Under a new 5-year revenue-sharing agreement between Major League Baseball and StubHub - where ticket-holders sell their tickets to buyers online - MLB is guaranteed $200 million over the five years and could make as much as $300 million.
The 25% profit on each ticket sale (15% from the seller and 10% from the buyer) is divided three ways, with a third to the club, a third to StubHub, and a third to Major League Baseball Advanced Media, which is the Internet subsidiary of Major League Baseball. The clubs had the choice of whether to be a part of the deal and only Boston chose not to participate.
Except for Boston, MLB teams now have links on their websites to StubHuB, see Philadelphia Phillies here.
HT: Ben Cunningham
Visit 1800blogger to see all of our industry leading blogs.
Are you an investor? Have something you want to say about the economy? Register on Econoimist Blog now and get published within minutes. Before posting, it is recommended that you review our posting guidelines.
