StubHub Is Spending Millions Trying to Stop a Bill That Would Cap Concert Ticket Resale Prices

As the debate over concert ticket prices continues to heat up, a major player in the ticket resale industry is pulling out all the stops to prevent a proposed bill from capping resale prices in California. StubHub, the popular online platform that allows users to buy and sell concert tickets, has reportedly spent a staggering $2.6 million on lobbying efforts in the state from April to June, making it the second-largest spender in the state during that quarter.

Background & Context

California is not the only state to consider price caps on concert ticket resale prices. In recent months, Maine, Vermont, and Washington, D.C. have all passed laws capping resale prices, while Massachusetts Governor Maura Healey has announced her support for similar legislation. The push for price caps has been driven in part by growing public frustration with the high cost of concert tickets, as well as concerns that resale platforms are profiteering from fans who are desperate to attend events.

At the center of the controversy is AB 1720, a bill introduced by California state assembly member Matt Haney in February that would limit concert ticket resale prices to no more than 10 percent higher than the original price. While the bill has undergone significant changes since its introduction, with an amendment limiting the law to smaller venues with capacities of 3,000 or fewer, StubHub remains opposed to any attempt to regulate resale prices.

Key Details

StubHub's $2.6 million in lobbying expenses for the quarter represents a significant increase in spending for the company, which has reportedly never spent more than this amount on lobbying in a single quarter in California. The company's total lobbying expenses for the year now stand at $3.4 million, making it one of the largest spenders on lobbying efforts in the state. According to a statement from StubHub, the company believes that its platform provides fans with greater access and choice when it comes to buying and selling concert tickets, and that any attempt to regulate resale prices would be detrimental to the industry.

"We exist to give fans access to live events on their own terms through a secure, verified marketplace – including fans who couldn't get tickets during the original on-sale, or who want the option of grabbing a great deal as prices shift closer to the event," the company stated. "We believe that more choice, flexibility, and access put fans first and help everyone get into the events they love."

What Experts Say

The push for price caps on concert ticket resale prices has been gaining momentum in recent years, with many experts arguing that the practice of ticket scalping is unfair and takes advantage of fans who are desperate to attend events. "Ticket scalping is a major problem for fans who want to attend concerts and other events," said John May, a music industry expert and advocate for price caps. "By capping resale prices, we can help ensure that fans have access to tickets at fair and reasonable prices."

However, others argue that price caps could have unintended consequences, such as driving ticket sales underground or reducing the availability of tickets for fans. "While the intention behind price caps is to help fans, the reality is that they could have the opposite effect," said David Johnson, a economist and expert on the ticketing industry. "By reducing the incentive for ticket sellers to list tickets at competitive prices, price caps could lead to a decrease in ticket availability and higher prices overall."

Key Takeaways

• StubHub has spent a record $2.6 million on lobbying efforts in California from April to June, making it the second-largest spender in the state during that quarter.
• The company's total lobbying expenses for the year now stand at $3.4 million, making it one of the largest spenders on lobbying efforts in the state.
• AB 1720, a bill introduced by California state assembly member Matt Haney in February, would limit concert ticket resale prices to no more than 10 percent higher than the original price.
• The push for price caps on concert ticket resale prices has been gaining momentum in recent years, with many experts arguing that the practice of ticket scalping is unfair and takes advantage of fans who are desperate to attend events.

What This Means For You

For fans who are desperate to attend concerts and other events, the debate over concert ticket prices is a major concern. While StubHub's efforts to block price caps may seem like a victory for the company, the reality is that the push for price caps is driven by a desire to help fans access tickets at fair and reasonable prices. By advocating for price caps, fans can help ensure that the ticketing industry is more transparent and fair, and that everyone has access to the events they love.

As the debate over concert ticket prices continues to heat up, fans can make their voices heard by supporting legislation that promotes transparency and fairness in the ticketing industry. By working together, we can create a more equitable and accessible ticketing industry that benefits everyone, not just the companies that profit from it.