Stubhub
Encyclopedia
StubHub is an online marketplace
owned by eBay
, which provides services for buy
ers and sell
ers of ticket
s for sport
s, concerts, theater and other live entertainment events.
The company was founded in 2000 by Eric Baker and Jeff Fluhr, both former Stanford Business School students and investment bankers, and is located in San Francisco. The company's president is Chris Tsakalakis. Other executives include Srini Venkatesan, Noah Goldberg, Matthew Gustke, Scott Day, Danielle Maged and Ray Elias. Founder Eric Baker left StubHub in 2004 following a falling-out with the company, and has started a new company, viagogo
. In 2005, the company raised between $10 million and $25 million from Pequot Ventures (now FirstMark Capital
). StubHub was acquired by eBay in January 2007.
Founder Eric Baker said, "I'm probably the one person from business school who decided to take his MBA and become a ticket scalper." Sellers post available tickets at any price they choose. Unlike other online ticket resellers, such as Craigslist
(free) and eBay (up front price per listing), StubHub takes a 25% commission after the sale occurs (10% from the buyer, 15% from the seller). Sellers range from season ticket holders who want to unload tickets that would otherwise go unused to professional ticket brokers.
On July 6, 2007, a Suffolk Superior Court judge allowed StubHub to proceed with its lawsuit against the New England Patriots. Stubhub is accusing the Patriots of attempted monopolization, conspiracy to restrain trade and unfair trade practices.
On October 19, 2007, a court upheld an order forcing StubHub to turn over a list of all New England Patriots season ticket holders since 2002 who had used the site. The Patriots stated that they may strip the season ticket holders of their seats.
On January 26, 2009, the Massachusetts Superior Court rejected StubHub's argument that it was not liable for its sellers' behavior per 47 USC 230. NPS LLC v. StubHub, Inc., 2009 WL 995483 (Mass. Super. Ct. Jan. 26, 2009), http://www.gesmer.com/upload/download.php?id_files=153.
, TicketNetwork, and others have begun to lobby state legislatures to repeal or modify the stricter anti-scalping laws. In Florida
, Stubhub made over $6,500 in campaign donations to members of the state legislature in support of a 2006 bill to amend Florida's 61-year-old anti-scalping laws. Many consumers, as well as lobbyists for the leisure and entertainment industries were opposed to the bill, and claimed it will drive up prices for consumers while hurting their share of the ticket market. To put these complaints into perspective, customers report paying 300% of standard retail price for events through ticket resellers like StubHub, although it is also possible that customers may purchase tickets at less than standard retail price.
Ticket exchange
-Secondary market:Ticket Exchanges alternatively known as Ticket Brokers, allow the public to advertise, trade, sell, and buy unwanted tickets online....
owned by eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
, which provides services for buy
Buy
Buy may refer to:*Trade, exchange of goods and services*BUY , Burlington, North Carolina*Buy.com, a shopping website*Buy , a 1979 album by James White and the Contortions...
ers and sell
Sell
Sell can refer to:*A verb relating to sales*Sell *One of several people named Edward Sell *Mary Elizabeth Sell, New York City Ballet dancer*Friedrich L...
ers of ticket
Ticket (admission)
A ticket is a voucher that indicates that one has paid for admission to an event or establishment such as a theatre, movie theater, amusement park, zoo, museum, concert, or other attraction, or permission to travel on a vehicle such as an airliner, train, bus, or boat, typically because one has...
s for sport
Sport
A Sport is all forms of physical activity which, through casual or organised participation, aim to use, maintain or improve physical fitness and provide entertainment to participants. Sport may be competitive, where a winner or winners can be identified by objective means, and may require a degree...
s, concerts, theater and other live entertainment events.
The company was founded in 2000 by Eric Baker and Jeff Fluhr, both former Stanford Business School students and investment bankers, and is located in San Francisco. The company's president is Chris Tsakalakis. Other executives include Srini Venkatesan, Noah Goldberg, Matthew Gustke, Scott Day, Danielle Maged and Ray Elias. Founder Eric Baker left StubHub in 2004 following a falling-out with the company, and has started a new company, viagogo
Viagogo
viagogo is an online ticket exchange that that allows people to buy and sell live event tickets in a safe, secure and transparent environment free from fraud and illegitimate street touts....
. In 2005, the company raised between $10 million and $25 million from Pequot Ventures (now FirstMark Capital
Firstmark Capital
FirstMark Capital is a private equity firm focusing on venture capital transactions in the United States. With approximately $2 billion of capital under management, FirstMark invests in technology companies early in a company’s lifecycle, frequently as the first institutional investor.Among the...
). StubHub was acquired by eBay in January 2007.
Founder Eric Baker said, "I'm probably the one person from business school who decided to take his MBA and become a ticket scalper." Sellers post available tickets at any price they choose. Unlike other online ticket resellers, such as Craigslist
Craigslist
Craigslist is a centralized network of online communities featuring free online classified advertisements, with sections devoted to jobs, housing, personals, for sale, services, community, gigs, résumés, and discussion forums....
(free) and eBay (up front price per listing), StubHub takes a 25% commission after the sale occurs (10% from the buyer, 15% from the seller). Sellers range from season ticket holders who want to unload tickets that would otherwise go unused to professional ticket brokers.
Operations
Using the StubHub website, a buyer may select from available tickets to an event. StubHub charges a buy fee of 10% of the purchase price of the tickets. (StubHub formerly charged a minimum service fee of $5, but stopped doing so in 2011.) A shipping and handling charge is then imposed and tickets are either shipped via FedEx Express, email delivered, available for instant download, or picked up the day of the event at a last-minute services office. In total, on a typical order, StubHub earns 20% of the purchase price of every ticket sold: buyers typically pay 10% more than the listed price and sellers receive 10-15% less than their listed price depending on certain seller metrics and bonuses. Criteria for reduced seller fees include confirm time, fill rate, and quarterly sales totals (large sellers must maintain $50,000 per quarter at a minimum.) Additional seller incentives include the ability to buy tickets without paying service fees.Sports partnerships
StubHub has formal relationships with several professional teams and college sports programs.- CFLCanadian Football LeagueThe Canadian Football League or CFL is a professional sports league located in Canada. The CFL is the highest level of competition in Canadian football, a form of gridiron football closely related to American football....
: All teams (Including the Grey CupGrey CupThe Grey Cup is both the name of the championship of the Canadian Football League and the name of the trophy awarded to the victorious team. It is Canada's largest annual sports and television event, regularly drawing a Canadian viewing audience of about 3 to 4 million individuals...
.) - MLSMajor League SoccerMajor League Soccer is a professional soccer league based in the United States and sanctioned by the United States Soccer Federation . The league is composed of 19 teams — 16 in the U.S. and 3 in Canada...
: All teams starting in 2010. - MLBMajor League BaseballMajor League Baseball is the highest level of professional baseball in the United States and Canada, consisting of teams that play in the National League and the American League...
: All teams. - NFLNational Football LeagueThe National Football League is the highest level of professional American football in the United States, and is considered the top professional American football league in the world. It was formed by eleven teams in 1920 as the American Professional Football Association, with the league changing...
: Chicago BearsChicago BearsThe Chicago Bears are a professional American football team based in Chicago, Illinois. They are members of the North Division of the National Football Conference in the National Football League...
, Indianapolis ColtsIndianapolis ColtsThe Indianapolis Colts are a professional American football team based in Indianapolis. They are currently members of the South Division of the American Football Conference in the National Football League ....
, Cincinnati BengalsCincinnati BengalsThe Cincinnati Bengals are a professional football team based in Cincinnati, Ohio. They are members of the AFC's North Division in the National Football League . The Bengals began play in 1968 as an expansion team in the American Football League , and joined the NFL in 1970 in the AFL-NFL...
, Houston TexansHouston TexansThe Houston Texans are a professional American football team based in Houston, Texas. The team is currently a member of the Southern Division of the American Football Conference in the National Football League...
, San Diego ChargersSan Diego ChargersThe San Diego Chargers are a professional American football team based in San Diego, California. they were members of the Western Division of the American Football Conference in the National Football League...
, Atlanta FalconsAtlanta FalconsThe Atlanta Falcons are a professional American football team based in Atlanta, Georgia. They are a member of the South Division of the National Football Conference in the National Football League...
, and Washington RedskinsWashington RedskinsThe Washington Redskins are a professional American football team and members of the East Division of the National Football Conference in the National Football League . The team plays at FedExField in Landover, Maryland, while its headquarters and training facility are at Redskin Park in Ashburn,...
, Tampa Bay BuccaneersTampa Bay BuccaneersThe Tampa Bay Buccaneers are a professional American football franchise based in Tampa, Florida, U.S. They are currently members of the Southern Division of the National Football Conference in the National Football League – they are the only team in the division not to come from the old NFC West...
. - NBANational Basketball AssociationThe National Basketball Association is the pre-eminent men's professional basketball league in North America. It consists of thirty franchised member clubs, of which twenty-nine are located in the United States and one in Canada...
: Washington WizardsWashington WizardsThe Washington Wizards are a professional basketball team based in Washington, D.C., previously known as Washington Bullets. They play in the National Basketball Association .-Early years:...
, Charlotte BobcatsCharlotte BobcatsThe Charlotte Bobcats is a professional basketball team based in Charlotte, North Carolina. They play in the Southeast Division of the Eastern Conference of the National Basketball Association. The Bobcats were established in 2004 as an expansion team, two seasons after Charlotte's previous NBA...
, Portland Trail BlazersPortland Trail BlazersThe Portland Trail Blazers, commonly known as the Blazers, are an American professional basketball team based in Portland, Oregon. They play in the Northwest Division of the Western Conference in the National Basketball Association . The Trail Blazers originally played their home games in the...
, and New Jersey NetsNew Jersey NetsThe New Jersey Nets are a professional basketball team based in Newark, New Jersey. They are members of the Atlantic Division of the Eastern Conference in the National Basketball Association...
. - NHLNational Hockey LeagueThe National Hockey League is an unincorporated not-for-profit association which operates a major professional ice hockey league of 30 franchised member clubs, of which 7 are currently located in Canada and 23 in the United States...
: Washington CapitalsWashington CapitalsThe Washington Capitals are a professional ice hockey team based in Washington, D.C. They are members of the Southeast Division of the Eastern Conference of the National Hockey League . Since their founding in 1974, "The Caps" have won one conference championship to reach the 1998 Stanley Cup...
, Buffalo SabresBuffalo SabresThe Buffalo Sabres are a professional ice hockey team based in Buffalo, New York. They are members of the Northeast Division of the Eastern Conference of the National Hockey League .-Founding and early success: 1970-71—1980-81:...
, and Phoenix CoyotesPhoenix CoyotesThe Phoenix Coyotes are a professional ice hockey team based in Glendale, Arizona. They are members of the Pacific Division of the Western Conference of the National Hockey League . They play their home games at Jobing.com Arena....
. - NCAA: Alabama, Arizona State, FloridaFlorida GatorsThe Florida Gators are the intercollegiate sports teams that represent the University of Florida located in Gainesville, Florida. The "Lady Gators" is an alternative nickname sometimes used by the Gators women's teams...
, Florida StateFlorida State SeminolesThe Florida State Seminoles are the men's and women's sports teams of Florida State University in Tallahassee, Florida. Florida State participates in the NCAA's Division I . FSU joined the Atlantic Coast Conference in 1991, and competes in the Atlantic Division in any sports split into a...
, GeorgetownGeorgetown HoyasGeorgetown's nickname is The Hoyas, but its mascot is "Jack the Bulldog." Various breeds of dogs have been used by the sports teams as mascots since the early 1900s. Several notable bull terriers like Sergeant Stubby and "Hoya" were used at football games in the 1920s, as was a Great Dane in the...
, GeorgiaGeorgia BulldogsThe Georgia Bulldogs are the athletic teams of the University of Georgia. The Bulldogs compete in National Collegiate Athletic Association Division I and are members of the Southeastern Conference...
, LouisvilleLouisville CardinalsThe Louisville Cardinals are the athletic teams representing the University of Louisville. A member of the Big East Conference since 2005, they are known nationally as traditional powers in men's basketball, women's volleyball, and dance team...
, MiamiMiami HurricanesThe Miami Hurricanes, of Coral Gables, Florida, are the varsity sports teams of the University of Miami. They compete in the Coastal Division of the Atlantic Coast Conference . The university fields 15 athletic teams for 17 varsity sports...
, MichiganUniversity of MichiganThe University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
, North CarolinaNorth Carolina Tar HeelsThe North Carolina Tar Heels are the athletic teams for the University of North Carolina at Chapel Hill. The name Tar Heel is a nickname used to refer to individuals from the state of North Carolina, the Tar Heel State...
, PurduePurdue BoilermakersBoilermakers is the official nickname for the intercollegiate athletic teams of Purdue University. As is common with athletic nicknames, it is also used as colloquial designation of Purdue's students and alumni at large....
, Southern MissSouthern Miss Golden EaglesThe Southern Miss Golden Eagles represent The University of Southern Mississippi in Division I athletics. The teams compete in Conference USA....
, Texas A&MTexas A&M AggiesTexas A&M Aggies refers to the students, graduates, and sports teams of Texas A&M University. The nickname "Aggie" is common at land-grant or "Ag" schools in many states. The teams compete in Division I of NCAA sports...
, TennesseeTennessee VolunteersThe Tennessee Volunteers and Lady Volunteers are the National Collegiate Athletic Association college sports teams at the University of Tennessee in Knoxville, Tennessee. Mike Hamilton is the most recent Men's Athletic Director, but resigned on June 7, 2011, and Joan Cronan is the current Women's...
, USCUSC TrojansThe USC Trojans are the athletic teams representing the University of Southern California in Los Angeles, California. While the men's teams are nicknamed the Trojans, the women's athletic teams are referred to as either the Trojans or Women of Troy...
, Virginia TechVirginia Tech HokiesThe Virginia Tech Hokies are the athletic teams officially representing Virginia Tech in college sports. The Hokies participate in the NCAA's Division I Atlantic Coast Conference in 19 varsity sports. Virginia Tech's men's sports are football, basketball, baseball, cross country, golf, soccer,...
, WashingtonWashington HuskiesWashington Huskies is the nickname of the University of Washington's athletic teams. The school is a member of the Pacific-12 Conference. The athletic program is made up of 9 men's sports and 10 women's sports Washington Huskies is the nickname of the University of Washington's athletic teams. The...
, and WisconsinWisconsin BadgersThe Wisconsin Badgers are the collegiate athletic teams from the University of Wisconsin–Madison. This NCAA Division I athletic program has teams in football, basketball, ice hockey, volleyball, soccer, cross country, tennis, swimming, wrestling, track and field, rowing, golf, and softball...
.
2011 BCS Championship
In 2011, StubHub allowed sellers to post tickets for sale without verifying ownership of the seats, opening the door for industry speculators to post phantom seating locations in hopes of filling the orders at a lower price when additional tickets surfaced on the secondary market. Due to overwhelming demand to see the Auburn Tigers and Oregon Ducks play in the National Championship, no such tickets ever entered the marketplace, leaving some StubHub customers without tickets. StubHub went to extreme lengths to attempt to fill the orders which were confirmed under the company's "FanProtect Guarantee" however, some fans were ultimately refunded and reimbursed for travel expenses.New York Yankees
In 2006, more than 100 New York Yankees season-ticket holders suspected of reselling their regular-season seats on StubHub received letters denying them the right to buy playoff tickets and barring them from buying season tickets for the 2007 season.New England Patriots
The New England Patriots sued StubHub to bar it from reselling the team's tickets. Fans reportedly showed up at games with phony or voided tickets bought over StubHub. While some were counterfeits, others were voided tickets sold by fans after they had their season-ticket privileges revoked. That problem, the Patriots argue, is worsened by a guarantee from StubHub that if tickets turn out to be fraudulent, the website will find alternate accommodations for the buyer. "Our experience is that as the listings on StubHub have increased, so also have the number of people who show up at the stadium with invalid tickets."On July 6, 2007, a Suffolk Superior Court judge allowed StubHub to proceed with its lawsuit against the New England Patriots. Stubhub is accusing the Patriots of attempted monopolization, conspiracy to restrain trade and unfair trade practices.
On October 19, 2007, a court upheld an order forcing StubHub to turn over a list of all New England Patriots season ticket holders since 2002 who had used the site. The Patriots stated that they may strip the season ticket holders of their seats.
On January 26, 2009, the Massachusetts Superior Court rejected StubHub's argument that it was not liable for its sellers' behavior per 47 USC 230. NPS LLC v. StubHub, Inc., 2009 WL 995483 (Mass. Super. Ct. Jan. 26, 2009), http://www.gesmer.com/upload/download.php?id_files=153.
Anti-scalping legislation
In 38 states, reselling event tickets is legal as long as the sale does not take place at the event site. The other 12 states have varying degrees of regulation, including registration requirements and maximum markups. Stubhub, TicketmasterTicketmaster
Ticketmaster Entertainment, Inc. is an independent American ticket sales and distribution company based in West Hollywood, California, USA, with operations in many countries around the world. In 2010 it merged with Live Nation to become Live Nation Entertainment...
, TicketNetwork, and others have begun to lobby state legislatures to repeal or modify the stricter anti-scalping laws. In Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, Stubhub made over $6,500 in campaign donations to members of the state legislature in support of a 2006 bill to amend Florida's 61-year-old anti-scalping laws. Many consumers, as well as lobbyists for the leisure and entertainment industries were opposed to the bill, and claimed it will drive up prices for consumers while hurting their share of the ticket market. To put these complaints into perspective, customers report paying 300% of standard retail price for events through ticket resellers like StubHub, although it is also possible that customers may purchase tickets at less than standard retail price.