line of credit loans for bad credit canadian reloadable prepaid credit cards marriott rewards credit cards reviews free balance transfer credit cards no fee rent wireless credit card machine citifinancial credit card contact number chase credit card services pay online how to check tesco credit card points hdfc credit card payment information hdfc credit card balance transfer chase freedom credit card ratings pay my first premier credit card bill credit card application referred for review how to start an online payday loan business does walgreens sell prepaid credit cards application for credit cards online reward cards ks2 gold delta skymiles credit card canada i don;t have any credit how do i get a credit card payday loans uk direct lenders chase pre approved credit card low interest credit card balance transfer life does chase bank have a student credit card payday loans bad credit ok direct lender american express corporate credit card customer care number what credit card is best for me rbc visa canada credit card best reward credit cards 2012 canada what is an issue number on a credit card visa debit virgin money credit card contact number sbi credit card apply online southwest rapid rewards business credit card quick online loans for unemployed approved cash advance store hours long term online loans south africa credit card payment app for ipad which bank easiest to get credit card master credit card number generator application for reissue of credit card list of all credit cards for bad credit td us visa card benefits chase credit cards rewards redemption chase credit card visa customer service standard chartered credit card promotions sri lanka credit card magnetic strip protector sleeve westpac credit card balance transfer rate 10 best online payday loans orchard credit card phone number hsbc amanah credit card balance transfer hdfc platinum master credit card offers what happens when a credit card company sues you visa card services online instant approval business credit cards old orchard bank credit card payment paypal vs credit card conversion rates credit cards longest interest free period student credit cards with no credit no cosigner best no fee visa credit card canada payday loan online canada credit card insurance uk absa credit card fraud insurance best rewards credit card 2013 uk standard chartered online credit card payment online how to accept credit cards on iphone 4 0 intro apr business credit cards tesco clubcard credit card lost stolen 3d secure credit card us bank credit card comparison tool manual credit card machine canada list of all chase credit cards is credit card protection insurance necessary intuit credit card scanner for ipad visa cash back cards canada capital one uk credit card login fixed rate credit card calculator best credit card bad credit unsecured credit cards with airmiles and no annual fee citibank business credit card contact credit card terminal for ipad inner fence list of premium credit cards in india cash rewards gas credit cards credit cards deals usa need a credit card credit card protection on purchases via paypal get a no credit check credit card best buy credit cards contact number best credit card to earn air miles singapore preloaded credit cards for international travel chase visa card lost icici bank credit cards e statement axis bank credit card apply phone number best credit card protection plan best rate credit cards canada mastercard uk management services ltd walmart credit card payments online credit card review singapore is magnum cash advance legal chase credit card no interest for a year where can i buy reloadable prepaid credit cards loft mastercard credit card payments credit cards after bankruptcy discharge 2012 how do credit card interest rates differ by company define the strategies credit card apply online in chennai create virtual paypal credit card shell gas credit card offers low interest credit cards balance transfer canada td visa card expires corporate credit card policy santander visa card issue number check debit visa card balance best small business credit cards for fair credit greenwoods personal credit gold card sears secure credit card login fast cash loans online lenders toys r us gold card change of address visa credit card for bad credit canada british airways visa card uk reducing credit card debt yourself fixed low rate credit cards canadian credit cards comparison ocbc great eastern credit card application form international credit card provider in bangladesh indusind bank credit cards offers 70 000 mile american express delta credit card best visa card manual credit card machine instructions bad credit visa cards australia top 25 credit card processing companies desjardins visa student credit card lloyds tsb credit card charges abroad chase credit card merchant services standard chartered online credit card payment pakistan i need a credit card to build my credit low fixed rate for life credit cards best credit cards for bad credit score myfico credit card finder credit card history check credit card rewards programs australia i need to apply for a visa credit card cancel cibc credit card online ace payday loans reviews gap visa card make payment best personal online loans cash advance payday loans scams how to get a credit card with no credit history yahoo answers hdfc credit card login bill payment online how to get free credit card information uk credit cards for new immigrants credit card machines for iphone uk legacy visa credit card application status credit rewards cards travel commonwealth bank credit card interest rates wells fargo business credit card machine kohls credit card pay which credit card offers the best cash back reward visa credit cards for college students reward credit card uk what is cash advance interest rate credit cards with free worldwide travel insurance prepaid credit card australian dollars best credit cards in canada credit limit increase capital one mastercard sbi platinum card annual fee new payday loans like wonga best corporate credit cards rewards apply for credit card credit union aib visa debit cards hsbc premier credit card rewards uk home depot canada credit card application sbi credit card application form status average credit card fees for business credit rating agencies best airmiles credit card usa what is a credit card that offers a 0 transfer balance secured credit card offers for bad credit td visa infinite cash back will a secured credit card help your credit what is my minimum credit card payment myer visa card fees need a credit card to rebuild credit walmart credit card account login best buy credit card app status compare credit cards india how do you calculate interest on credit card balances payday loans no fees unemployed city bank credit card login page corporate credit card credit check www.chase.com/creditcards online payment walmart credit card 20 cash back best credit cards for students with no income interest free credit card transfer offers best air miles rewards credit card canada get pre-approved for chase credit card best ways to pay off credit card debt reloadable visa cards uk bestbuy credit card credit card limit increase good or bad my prepaid credit card canada post black cardamom tea obama credit card debt relief grant is there an app for walmart credit card bsnl to vodafone balance transfer best business travel credit card canada credit card numbers that work prepaid credit cards canada review capital one balance transfer rates existing customers womens black cardigan sweater can you get cash from a prepaid visa card random credit card number and name what is a credit card cvv cheap interest payday loans online credit card balance transfer comparison calculator uob credit card shell promotion walmart prepaid visa card canada how to hook up a verifone credit card machine android credit card app uk halifax 22 month balance transfer credit card dubai first credit card payment chase united plus credit card login military pay advance pcs sear credit card login citi tips on how to pay off credit card debt fast unsecured business cash advances capital one credit cards no foreign transaction fees nfinanse prepaid debit visa card uk payday loans with bad credit free virtual credit card for paypal verification chase credit card apr cheapest virtual credit card terminal best platinum credit cards uk wells fargo credit card rewards mortgage free credit report no card details required new credit card fees in canada student credit card for students with bad credit pay bank of america credit card at branch credit card with no annual fee for bad credit compare reward credit cards australia shell credit card login iphone credit card case best buy best buy rewards credit cards payment military pay advance rules new credit card rules for stay at home parents which is the best credit card for students with no credit history i have bad credit and want to get a credit card fast easy cash loans south africa hsbc credit card balance transfer promotion apply for capital one platinum credit card credit card limit calculator hdfc iphone credit card case 5 best delta rewards credit card major credit card logos for website credit card fraud uk statistics credit card for bad credit no credit check personal loan calculator bad credit black credit card natwest what is the credit score range for american express card mastercard amazon 10 off 100 reset verifone credit card machine travel rewards credit card with no annual fee credit card payment processing bad credit cash loans online short term loan bad credit history apply credit card online abn amro 500 fast cash loans prepaid credit cards canada bankruptcy can i get a credit card without having a job is closing a credit card account bad for your credit score loans for bad credit and no debit card pay circuit city credit card 4 major credit cards companies is magnum cash advance legal in florida intuit small business credit card processing top 5 credit cards in india 2012 chase credit card rewards gift cards best credit card for students traveling abroad top ten best credit cards to have what are good apr rates for credit cards apply for visa student credit card td canada premium credit cards who has best credit card reward program direct payday loan lenders no brokers visa prepaid credit card usa credit card charges ez payday advance watertown sd bankruptcy credit cards bad credit loans no fees consumer reports best credit card balance transfers jcpenney rewards credit card payment address do i need a credit card for itunes match how fast does a secured credit card help your credit square credit card reader ipad 2 credit cards for average credit no annual fee unsecured loans with bad credit australia best travel points credit card canada 2013 credit card payment machine hire cash advance direct lenders for bad credit us bank secured business credit card cheapest credit card transfer rate hdfc credit card status complaint very bad credit loans no guarantor no broker online payday loan scams review do you need a credit card for itunes match visa credit card offers small business credit cards with high limits tips for getting a first credit card apply for a visa credit card with no credit history hdfc credit card settlement process instant online no fax payday loan tips for getting a credit card with bad credit 12 month 0 balance transfer no fee best business credit card canada 2012 government small business loans with bad credit i need a bad credit loan of 5000 aspire credit card hdfc credit card apply halifax student credit card terms and conditions credit cards apply online icici vanquis credit card contact number abroad how to get verified on paypal without a bank account or credit card loans you can pay back monthly sbi international credit card charges credit card comparisons australia walmart pre approved credit card offers hdfc credit card loans test credit card visa number accept credit card payments mobile portable credit card terminal rental citibank online credit card application status india td visa card activation number compare cheapest credit card rates dcu visa platinum secured credit card reviews granite credit card online statement accepting credit cards with paypal iphone credit card case kickstarter hdfc credit card payment online from sbi credit card best credit cards for college students with no income bdo credit cards online application bad credit credit card offers very bad credit car leasing aqua student credit card review how to get a us dollar credit card in canada best chase credit card offers 2013 delta miles credit card login is there a secured credit card with rewards unsecured credit card with no credit check fixed rate credit cards definition old fashioned credit card machine united miles credit card deal british airways credit card offer online application for credit card philippines what does pdq credit card machine stand for 0 on cash advances on credit cards credit card reviews canada 2012 loans for bad credit uk credit card calculator excel template what is the best credit card deal for balance transfers sallie mae pay loans fast cash loans online south africa first premier bank credit card for bad credit reviews cheapest credit card terminal rates quick cash loans for unemployed uk walmart credit card number phone best visa credit card usa which credit card is best for international students best credit cards to use in the uk different types of bank of america credit cards how do i find my usaa credit card pin gas credit cards for poor credit reporting credit card settlement to irs bad credit loans compare the market natwest business credit card helpline apply for a student mastercard credit card best cashback credit cards with annual fee nedbank platinum card requirements secured credit cards to rebuild credit google wallet credit card security united mileage plus credit card uk guaranteed unsecured credit card for bad credit companies that reduce credit card debt minimum age to apply for credit card in canada state bank of india apply online credit card cash advance loans direct lenders only credit card prime rate definition credit card 0 balance transfer to current account activate vanilla visa card nordstrom credit card visa signature direct payday loan lenders only no teletrack walmart credit card approval time free credit card logos vector no credit check payday loans direct lender lowest credit card rate in us purchasing bad credit card debt citibank virtual credit card download sign up for a free visa credit card apply for credit card visa online prepaid visa credit cards india can i get a credit card with no credit rating loan with bad credit history india best airline rewards credit cards 2011 i need a credit card asap bad credit best credit card transfer balance offers should i get credit card protection i don;t want a credit card va loan with bad credit score legit payday online loans credit card business loans credit card minimum payment affect credit score hdfc bank credit card help desk payday cash loans online first capital connect annual gold card bad credit payday loan lenders online best wifi credit card terminal what is the best prepaid credit card for online use credit card to earn air miles singapore canadian credit cards with travel insurance credit card interest free period australia prepaid virtual credit cards usa working visa card generator usaa college credit card review nedbank credit card limit increase hdfc credit cards reward points catalogue credit card visa mastercard number best starter credit cards for college students best online payday loans uk hsbc best buy credit card reviews united airlines credit card good deal is a secured credit card a good way to rebuild credit what does your credit score need to be to get a best buy credit card best portable credit card scanner get paypal credit card uk hdfc gold credit card apply online virgin 0 credit card balance transfers what credit cards companies only use experian free high risk credit cards i have no credit what credit card can i get united mileage plus club credit card review credit card with 0 interest on balance transfers for 12 months what is the best secured credit card to get in canada gnc gold card uk what is the best visa credit card to get capital one venture rewards credit card review post office credit card contactless delta credit card offer payday lenders uk 2013 small cash loans with bad credit cash converters payday advance pretoria can you transfer a personal loan to a credit card hdfc online credit card payment india compare credit cards for business what does your credit score have to be to get a sears card how do payday cash advances work american express reward credit cards credit score range credit card approval ikea credit card application online usa prepaid international credit card visa american express platinum credit card travel insurance discover credit card in canada citibank credit card apply hdfc flight offer credit card money back credit cards uk natwest credit card customer services contact number us bank credit card standard chartered credit card malaysia chase mastercard credit card activation phone number hdfc credit card reviews india nedbank apply online for a credit card government of canada credit card regulations free credit card reader for ipad best credit cards to apply for with bad credit shell drive for five credit card login store credit cards with instant approval change mastercard securecode pay hdfc bank credit card bill online zurich credit card insurance reviews secured credit card reviews 2012 best credit cards for good credit scores american express corporate credit card india login hsbc credit card balance transfer offers instant virtual credit card online comparing credit cards canada online tracking of icici credit card status best rate credit cards 2013 application for credit card indian bank small personal loans with bad credit how to hack a credit card number visa 2012 nab credit card balance transfer offers can you get cashback on visa gift cards bank of ireland credit card insurance on purchases which credit card is easy to get approved in australia short term loans online ireland capital one prepaid credit card credit card consolidation loan calculator citibank credit card loan emi calculator credit card rate comparison australia credit card online validator 2.11 what is the best student credit card to get hsbc credit card online application malaysia best installment loans online cash payday loans fast credit card points
Home Pete Toms LWIB: The Challenge of Secondary Ticketing for MLB, plus Tidits

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 664 guests online

Atom RSS

LWIB: The Challenge of Secondary Ticketing for MLB, plus Tidits PDF Print E-mail
User Rating: / 7
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Monday, 19 December 2011 16:11

Last Week in Bizball by Pete Toms

This week in “Last Week in Bizball, the challenge of secondary ticketing for MLB, plus tidits.

SECONDARY TICKETING

LWIB, TicketNews.com reported that the Braves are offering a paperless ticketing option for group sales beginning next season. The tickets are purchased with a credit card, stored on that card and that card is swiped at the gate to allow entry into Turner Field. Ho-hum? Sign of the times? In part, I guess, but has this initiative also been launched to limit the number of Braves tickets available on the secondary market? “The restrictive paperless system will be operated by the team's ticketing partner Ticketmaster, which means the tickets are not easily transferable. Because Ticketmaster's system ties paperless tickets to the credit card used to purchase them, the cardholder must be present in order for the group to gain entry….A spokesperson for the team did not reply to a request for comment.” Earlier this year, TicketNews.com provided more details on Ticketmaster’s paperless option and noted that, “Such paperless tickets cannot be resold on StubHub, TicketsNow, Razorgator or any number of other third-party secondary ticket marketplaces, Web sites or exchanges.”

The Braves paperless offering follows the announcement early in the year that they had launched a “season ticket exchange” on their web site. The “ticket exchange” allows fans interested In purchasing season tickets to “find” one another on the team web site and share tickets. At the time of the announcement TicketNews.com reported, “…the move also is a way for a team to try to keep control of its tickets instead of those tickets ending up on the secondary market.”

In 07, MLBAM signed a deal with secondary ticketing industry leader StubHub. That deal branded StubHub as MLB’s official ticket reseller. At the time, it was widely believed within the industry, and amongst sports biz watchers (including me), that MLB would profit handsomely from this alliance. It seemed pretty straightforward. Ticket resellers were profiting off MLB, and so, why shouldn’t MLB become a reseller and take those profits for themselves? And didn’t MLB also have the largest ticket inventory of the “big 4”? And, as with everything BAM, the deal would allow MLB to centralize/redistribute the newfound revenue. MLB has been proven correct in concluding that secondary ticketing was the present and the future. According to an October feature in SportsBusiness Journal on secondary ticketing in MLB, unique visitors to StubHub have increased from 2.5 million in 07 to more than 12 million today. With the BAM/StubHub deal expiring at the end of the upcoming season, how profitable has secondary ticketing been to MLB? According to SBJ, MLBAM expects to receive in the range of $60 million from StubHub this year. But, within MLB there are plenty of critics of the BAM/StubHub alliance. These critics complain that the burgeoning secondary market has cannibalized their primary ticket sales, including season tickets. In fact, some question if fans any longer see a delineation between the primary and secondary markets. And guess who was widely quoted in the aforementioned SBJ piece? Derek Schiller of the Atlanta Braves said, “I don’t believe there is any bigger obstacle or issue, any bigger threat to the professional team sports marketplace and industry as a whole…This is the single biggest issue facing our industry….The amount of dollars at risk is growing near exponentially. And we absolutely as an industry — and not just baseball — need to manage it.”

The SBJ report notes that last season 8 million MLB tickets were resold on StubHub, an increase of 2 million over the previous season. But along with that dramatic increase, and corresponding StubHub commissions paid to BAM, has come a glut of below face value tickets for many teams. This trend is not particular to MLB, SBJ noting that, “Since 2007, average ticket sales prices on StubHub, regardless of sport, have fallen each year, dropping from $112 per ticket in 2007 to $104 in ’08, $94 in ’09, $84 in ’10 and $82 thus far this year.” Angels executive Robert Alvarado was very outspoken about the BAM/StubHub alliance. “We did it to ourselves, StubHub was a small player. And we blew it up. They’re legitimate now. And it’s killing us. It’s killing us. Location. Price. Just about every advantage we had over the secondary market is gone. It’s the blurring of the lines. Because, in my opinion, we failed to do our due diligence before we jumped into bed with StubHub.”

SELECT READ MORE TO SEE THE REST OF THIS ARTICLE

But while the critics of the BAM/StubHub alliance blame it for enabling a “dumping ground” of below (often drastically) face value tickets, clubs like the Red Sox and Giants who “sell out” practically all their ticket inventory, are happy with the arrangement.

Commissioner Selig realizes that secondary ticketing has become a problem for many franchises. In response, last year he formed a committee, which included representatives from six teams including the Braves and Yankees, to study the situation, including the soon expiring BAM/StubHub deal.

The obvious, and easy, solution to the cannibalizing of clubs primary (season ticket) ticket inventory is introducing a “price floor”, as is the case with dynamic pricing. StubHub president Chris Tsakalakis argued that this approach is not realistic, “If we were to impose price controls, floors or ceilings, that would just open things up to a competitor who would not, Market pricing by its very nature is free, and trying to control it just means you push it to other avenues.” Others argue that clubs can decrease the number of their tickets being “dumped” on the secondary market by better tying the price of their primary tickets to demand. In other words, increasing prices to high demand games and lowering prices for low demand games.

The staggering success of MLBAM and the skyrocketing value of local TV rights have generated enormous new wealth in MLB in recent years. But, plain old fashioned ticket selling remains the single largest source of revenue in the industry. And thus, how MLB manages the secondary market is one of their most important challenges

TIDBITS

  • The Ricketts family continue to pursue their vision for a ballpark village/retail/restaurant/entertainment….whatever you want to brand it…development adjacent to Wrigley Field. LWIB it was reported that they paid $20 million for “..about an acre of land at Clark and Addison..” The newly acquired property is across the street from the site of the long-discussed “triangle building”, which is key to the Ricketts’ Wrigleyville development plans. The Cubs are pursuing the same successful strategy of John Henry in Boston, who has increased revenue generation in, around (Yawkey Way) and on top of (Green Monster seats) Fenway Park. In fact, it has been reported that Theo Epstein’s experience working with Red Sox ownership on those successful initiatives is one of the reasons he got the Cubs job.
  • I found myself paying practically no attention to the recently concluded annual Rule 5 draft. Not so long ago the Rule 5 generated interest amongst hardcore MLB fans, including me, because there was a legitimate chance that clubs could acquire a big talent. George Bell, Jose Bautista, Johan Santana, Joakim Soria, Josh Hamilton and Dan Uggla are all former Rule 5 selections. LWIB, in a piece titled “Rule 5 Draft Slipping Into Obscurity”, John Manuel informed me as to why I’m not paying attention any longer. Teams made just 12 selections in the major league phase, the fewest since 2000 (10). The changes made in the 2006 Collective Bargaining Agreement, giving clubs an extra protection year for their minor leaguers before they have to be added to the 40-man roster or exposed to the Rule 5, have made players available in the draft less attractive.”
  • Lots of stadia politics in northern CA. Oakland Mayor Jean Quan is lobbying MLB as part of her efforts to keep the A’s in her city. In addition, SF Mayor Ed Lee and Giants CEO Larry Baer met with the Warriors recently to discuss luring them to a proposed new arena near AT&T Park. On top of that, I think the idea that the Raiders could share the new stadium in Santa Clara with the 49ers is viable. Mayor Quan is in an impossible situation. When pro sports franchises pack up and leave it reflects badly on them. Spending hundreds of millions of dollars, especially when your government is struggling financially, on new stadia to keep those teams only creates more problems. So…good luck Mayor Quan and you should always read Neal deMause.
  • I’m a big fan of Baseball America. BA isn’t hip or fashionable and has seemingly been around forever. There is no video on their site, no snark, no slideshows, no impenetrable objective analysis, no spray charts or graphs, in fact, readers can‘t even make comments! But BA is home to the most informed and current reporting on all matters minor league, college and high school baseball. LWIB, it was announced that GrindMedia (part of Source Interlink Media) has purchased BA. I suspect GrindMedia will endeavour to make BA more appealing to young fans. They note in the press release that they see growth opportunity in BA’s “video platform”. The only thing I want out of GrindMedia is that they continue to employ Jim Callis, John Manuel, Josh Leventhal, Ben Badler, et. al. because they, and not the platform, are what is worthwhile about BA.

You can follow me on Twitter @PeteToms


Pete Toms is senior writer for the Business of Sports Network, most notably, The Biz of Baseball. He looks forward to your comments and can be contacted through The Biz of Baseball.

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?