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Golden State Warriors Tickets Stubhub
Last spring, StubHub sued both Ticketmaster and the NBA’s Golden State Warriors, alleging the team threatened to cancel season ticket holders’ subscriptions if they tried to purchase any of their tickets through StubHub instead of Ticketmaster’s secondary ticket resale service. But last week, a federal judge dismissed StubHub’s case.
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StubHub argued that forcing Warriors fans to only resell their season tickets through Ticketmaster constituted an illegal “tying” relationship in violation of the Sherman Antitrust Act.
Ticketmaster is the sole seller of new tickets for the Golden State Warriors, and by making Ticketmaster the sole seller of Warriors tickets, StubHub argued that this gave its competitor an unfair monopoly on NBA tickets in the San Francisco Bay Area.
However, Ticketmaster argued that (A) there is nothing illegal about an exclusive retailer selling game tickets in the primary market; and (B) that – apart from the price change – there is no real difference between tickets on the secondary market and tickets on the primary market. If the two markets are, in the legal sense, reasonably substitutable, then it’s really hard to make an antitrust case.
And the judge [PDF] agreed, first noting that it was OK for the Warriors to sell their tickets only through Ticketmaster, citing precedent that “any manufacturer’s natural monopoly on the production and sale of its products cannot be the basis for antitrust liability.”
Golden State Warriors: Stubhub’s Antitrust Lawsuit Dismissed
As for the secondary ticket market, StubHub pointed to the Justice Department’s review of the Ticketmaster/Live Nation merger, in which the government recognized “ticketing services” and “secondary ticketing companies” as “related and distinct markets.”
But the judge noted that the DOJ was talking about antitrust concerns at the national level — a scope he thought was too broad to apply to this case. He said StubHub failed to show that the DOJ “is of the opinion that primary tickets for games by the same team in the same arena are not interchangeable with secondary tickets for the same games.”
In an emailed statement, Ticketmaster said it was pleased with the ruling. We’re not including the rest of the statement, which is a jumble of marketing terms like “innovative,” “first,” and “superior.”
We argue that if Ticketmaster lives up to its marketing hype, it should not foreclose competition through (apparently legal) conditions that limit customers to using one company to buy and sell their tickets.
Getting Charged A Ridiculous Penalty Of $1435 For Two Tickets Of Only $1275 On Stubhub
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Thank you for visiting. As of October 2017, we no longer generate new content, but feel free to browse our archive. Here you can find 12 years of articles on everything from how to avoid fraud to writing an effective appeal letter. Check out some of our biggest hits below, explore the categories listed on the left side of the page, or visit CR.org for ratings, reviews and consumer news.
EBay-owned ticketing site StubHub is suing Ticketmaster and the NBA’s Golden State Warriors for allegedly threatening to cancel season ticket holders’ subscriptions if they try to resell their tickets through StubHub.
According to the lawsuit [PDF] filed in federal court in San Francisco, the Warriors already have a monopoly on primary ticket sales, conducted exclusively through Ticketmaster, and the team and the ticketing company are trying to perpetuate that control over tickets. sale “by forcing Warriors fans to use only the secondary ticket exchange services offered by the Warriors through Ticketmaster to resell Warriors tickets.”
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“They set out to achieve this illegal result with one goal in mind: to obtain fees and profits that they could not obtain in the competitive environment of secondary ticket exchanges,” the complaint alleges violations of federal and state Sherman antitrust laws. – California State Laws.
StubHub claims that anyone who owns a ticket to a Warriors game should sell it on any of its secondary markets, but claims that “In order to control and profit from the resale of Warriors tickets through such exchanges, the Warriors and Ticketmaster have canceled or threatened to cancel fan subscriptions on Warriors season tickets and postseason tickets if fans choose to resell their Warriors tickets through a secondary ticket exchange that competes with Ticketmaster, “which apparently includes StubHub.” In essence, the defendants gave Warriors fans a Hobson’s choice: use only Ticketmaster’s secondary ticket exchange or give up Warriors tickets altogether. For Warriors fans, that’s really not an option anymore.”
The retailer claims this policy led to an 80% drop in Warriors ticket inventory on StubHub between 2013 and 2014:
“If the defendants are not prevented from continuing their anticompetitive practices, Ticketmaster will become the only secondary exchange through which Warriors tickets are sold,” StubHub said, “just as it was the only primary ticketing platform through which Warriors tickets are sold available. (and tickets to most other major events in the United States) have sold out for years.
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The complaint alleges that Ticketmaster makes it difficult for fans to sell tickets by, for example, delaying the delivery of printed tickets days before the event, even if they were purchased months in advance.
StubHub also warns that if Ticketmaster’s alleged anti-competitive policies are not stopped now, the company “is likely to replicate them with other teams and entertainment venues across the United States, limiting more consumers to secondary ticket exchanges and forcing competitors and newcomers to, As a result, millions of Americans they will be trapped by another monopoly fare exchange, which limits its ability to charge competitive prices for low-quality services.
Want more consumer news? For the latest information on fraud, recalls and other consumer issues, visit our parent organization, Consumer Reports. Major sports teams have unwanted political influence, allowing them to push through laws that restrict the ticket market to the detriment of fans.
Why is reselling a ticket – at any price – more illegal than selling a shirt? Many who claim to believe in the free market — looking at you, professional sports owners — don’t extend that belief to the ticket market.
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Ticket broker StubHub has filed a lawsuit against the Warriors and Ticketmaster in the Northern District of California, accusing them of conspiring to fuel an illegal resale market.
The lawsuit alleges that the Warriors and Ticketmaster notified season ticket holders that any subsequent sales of Warriors tickets must be made exclusively through their joint platform. StubHub confirms Warriors ticket inventory has dropped 80% over the past year.
The lawsuit alleges that the Warriors threatened to terminate the benefits of those who did not comply.
This includes allowing the purchase of playoff tickets for seasons where the consumer has already purchased season tickets.
Stubhub Sues Ticketmaster And Golden State Warriors Over ‘unfair’ Scalper Market
It will be interesting to hear how StubHub is a legitimate exclusive ticket seller for other teams, but is no good at Ticketmaster. In other markets, StubHub plays exactly the same role as Ticketmaster with the Warriors.
Hopefully this is a step toward repealing some of these special interest laws that protect teams at the expense of the public.
It will probably just shake up which protected special interests will compromise with which protected special interests.
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