NY investigators target NFL over ticket resale

New York Attorney General Eric Schneiderman released a damning report on the ticketing industry Thursday, criticizing artists, ticketing companies and scalpers for practices he said have created an unfair and imbalanced marketplace.

Even tickets to free events, such as Pope Francis’ appearance in Central Park last September, are quickly acquired and resold at high prices on such sites, the report said.

Attorney General Schneiderman (D) says that’s because people, or groups, run “bots”- programs built to buy up mass quantities of tickets in a short amount of time.

Schneiderman says the three-year investigation shows illegal software, or “ticket bots”, buys up many tickets, despite caps on how many tickets can be purchased.

The NFL did not immediately respond to a request for comment on the antitrust investigation.

“My office will continue to crack down on those who break our laws, prey on ordinary consumers, and deny New Yorkers affordable access to the concerts and sporting events they love”, Schneiderman said.

He called for greater transparency, like having ticket resale sites such as StubHub listing the original face value of they tickets they sell and also for legislation to limit the markups that resellers can put on tickets.

To combat the growing problem, Schneiderman said it will be up to businesses to voluntarily help police the problem, rope-in the legislature to make the laws more consumer friendly and give authorities the ability to go after brokers breaking the law.

Schneiderman’s report also talks about more straightforward scalping businesses run by licensed ticket brokers, which are legal but loathsome – the resale of a single One Direction ticket recently sent the cost from $101 to $7,244 – and about ticket “holds” for industry insiders, as well as presales for club members and credit-card holders.

These brokers then sell those tickets on third-party websites – like StubHub – where they’re marked up by as much as 1,000 percent. Because some teams require ticket holders to use the league-promoted platform, even sellers who would be willing to sell for less can’t, according to the report. In fact, only 46 percent are- according to the report. A LiveNation/AEG analysis, referenced in the AG’s report, showed that, on average, less than half of all seats for major events are ever made available to the general public. MSMSS will pay $80,000 in penalties and Extra Base Tickets will pay $65,000. “We applaud Attorney General Eric Schneiderman’s effort to combat this issue, and we support a system that is more equitable for those who wish to experience the arts”.