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Got any extras? MLB signs deal with StubHub
2007-08-02 08:59
by Bob Timmermann

MLB and StubHub.com signed a deal that makes the eBay spinoff the official secondary ticket reseller for all 30 major league teams, according to a story in the New York Times.

The deal caps a growing trend over the last several years to legitimize the secondary ticket market. Most of the league’s teams participate in ticket resale from their own Web sites and within rules and regulations dictated by teams and state laws. The deal not only embraces the activity and validates the secondary ticket market, but gives Major League Baseball a share of the revenue from sales.

“The taboo of the secondary ticket market has been all but eliminated,” said David M. Carter, assistant professor of sports business at the University of Southern California’s business school. He said that baseball and other professional sports franchises are asking: “Why not capture some of the revenue that for years has been left on the table to scalpers?”

Comments
2007-08-02 09:19:46
1.   Ali Nagib
Among the major arguments against legitimizing the secondary market or offering all tickets under some sort of auction/free market system are that hardcore fans "deserve" to be able to buy tickets at below market prices, and that having only people that can afford to pay high prices to go to games in the stadiums is bad. So I have a suggestion: sell tickets at reduced prices to hardcore fans and/or season ticket holders with their names printed on them and require an ID to use the ticket. Obviously you would never want to do this for all or most tickets, but this way you could ensure that people who pay the "fan" price don't turn around and sell their tickets, while the team can almost completely eliminate the secondary market and capture all the revenue for themselves. This doesn't seem like a particularly wild or controversial idea to me, but I'd like to know what other people think.
2007-08-02 09:24:58
2.   Sandus
"The deal not only embraces the activity and validates the secondary ticket market, but gives Major League Baseball a share of the revenue from sales."

Won't this drive up the ticket prices in order to absorb the additional cost?

2007-08-02 09:31:26
3.   Ken Arneson
Man, what a charmed life StubHub has led. First, EBay buys them when EBay could easily have put StubHub out of business if they had wanted to, and then MLB.com decides to partner with them, when MLB.com could easily have put StubHub out of business if they had wanted to. If either of their obstacles had been named Microsoft instead, they'd be dead by now.
2007-08-02 10:08:57
4.   williamnyy23
3 Why put them out of business when you can make money with them?
2007-08-02 10:19:09
5.   Ken Arneson
4 Because you can monopolize the industry and make all the money instead of just some of it.
2007-08-02 12:19:42
6.   Ali Nagib
5 - So just sell 90% of a team's tickets through StubHub. MLB doesn't need to have a core competency in managing market price sales of its tickets....I assume MLB will buy them out at some point, but they want to just stick a toe in the water for now as "partners" instead of "owners." It's all about PR for the moment.
2007-08-02 17:34:19
7.   Ken Arneson
MLB.com bought out Tickets.com before, and I just wonder why they just didn't throw their Tickets.com engineers at the problem instead of doing this partnership. Maybe the teams just liked the revenues from all the StubHub ads too much.

Anyway, my point wasn't so much surprise at this deal so much as the obstacles StubHub overcame to get here from point zero. Because if I was a VC, and you told me that in order to succeed, you're going to have to both beat EBay at an auctioning game and beat pro sports leagues plus Tickets.com at selling tickets, I wouldn't have thrown very much of my money at you. But they did it, so huzzah for them.

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