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Charges brought in White Sox ticket scheme

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Click on the tweet for a lot more. I think this is the same story we heard last year, now with charges brought forward

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The fact that this went on for three years before being detected is a pretty major indictment of the business/marketing/sales end of the organization.  Not only did this screw the Sox to the tune of $1 million, it also screwed any legitimate season ticket holder or fan who needed to sell tickets on Stubhub, as they were able to significantly undercut other sellers and still make boatloads of money, driving down the value of tickets for everyone else.

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So if I have this right, the Sox ticket people were giving a broker tickets for free and then they were given some of the profits?

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Best part of this story is the guy that was selling the tickets was named Bruce Lee.

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4 hours ago, ThirdGen said:

The fact that this went on for three years before being detected is a pretty major indictment of the business/marketing/sales end of the organization.  Not only did this screw the Sox to the tune of $1 million, it also screwed any legitimate season ticket holder or fan who needed to sell tickets on Stubhub, as they were able to significantly undercut other sellers and still make boatloads of money, driving down the value of tickets for everyone else.

Hard to believe Stub Hub didn't know what was going on earlier.  They guy was literally selling 100x the volume of Sox tickets as any other reseller on their platform and he was selling them at what they had to have known were rock bottom prices indicating he was either taking a loss or -- much more likely, was selling fraudulent tickets.

And yea, what was going on in the Sox' sales department that they couldn't figure out why they were seeing so many of these "comp" tickets not only activated in their system but then resold on Stub Hub?  

 

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12 minutes ago, chitownsportsfan said:

Hard to believe Stub Hub didn't know what was going on earlier.  They guy was literally selling 100x the volume of Sox tickets as any other reseller on their platform and he was selling them at what they had to have known were rock bottom prices indicating he was either taking a loss or -- much more likely, was selling fraudulent tickets.

And yea, what was going on in the Sox' sales department that they couldn't figure out why they were seeing so many of these "comp" tickets not only activated in their system but then resold on Stub Hub?  

 

Problem is those systems don't talk to each other. All they were seeing is that these comp tickets were being used, which to the team is a huge ++ because they're generating revenues within the park that the team wouldn't have had otherwise.

If Stubhub and MLB data talked to each other, the Sox would see they were being resold. 

Also, they weren't the only people selling under market value tickets for a team that was bad; that's how a lot of brokers try to limit their losses - getting whatever they can get for them depending on the markets pricing. 

The Sox are happy because more people are in the stadium - which was the point of the comp tickets in the first place - and stubhub is happy because they get to ticket fees on all those tickets they sold.

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4 minutes ago, Look at Ray Ray Run said:

Problem is those systems don't talk to each other. All they were seeing is that these comp tickets were being used, which to the team is a huge ++ because they're generating revenues within the park that the team wouldn't have had otherwise.

If Stubhub and MLB data talked to each other, the Sox would see they were being resold. 

Also, they weren't the only people selling under market value tickets for a team that was bad; that's how a lot of brokers try to limit their losses - getting whatever they can get for them depending on the markets pricing. 

The Sox are happy because more people are in the stadium - which was the point of the comp tickets in the first place - and stubhub is happy because they get to ticket fees on all those tickets they sold.

Stub Hub should work more closely with the clubs to prevent fraud.  I don't really blame the Sox here it's more just that system is setup to fail.  

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7 minutes ago, Look at Ray Ray Run said:

Also, they weren't the only people selling under market value tickets for a team that was bad; that's how a lot of brokers try to limit their losses - getting whatever they can get for them depending on the markets pricing. 

I’m sure someone knows the answer - why are there always guys outside the stadiums buying extra tickets right before the game?

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1 minute ago, chitownsportsfan said:

Stub Hub should work more closely with the clubs to prevent fraud.  I don't really blame the Sox here it's more just that system is setup to fail.  

Yeah, this was my point/take away. 

The Clubs should just code/classify give-away tickets uniquely, making it easy for stubhub to see if they're being resold. By treating all the tickets the same, it's impossible to police it.

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6 minutes ago, Look at Ray Ray Run said:

Problem is those systems don't talk to each other. All they were seeing is that these comp tickets were being used, which to the team is a huge ++ because they're generating revenues within the park that the team wouldn't have had otherwise.

If Stubhub and MLB data talked to each other, the Sox would see they were being resold. 

Also, they weren't the only people selling under market value tickets for a team that was bad; that's how a lot of brokers try to limit their losses - getting whatever they can get for them depending on the markets pricing. 

The Sox are happy because more people are in the stadium - which was the point of the comp tickets in the first place - and stubhub is happy because they get to ticket fees on all those tickets they sold.

They should talk to each other considering they do have an agreement. But you are right, the Sox didn't really lose $1 million here. The people who probably lost most were other Stubhub sellers.  And the Sox do get a percentage of the Stubhub price, which means they got money for comp tickets. The Sox made money on concessions and parking, so overall, it probably was a wash at worst. But still, slimy as can be.

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6 minutes ago, Middle Buffalo said:

I’m sure someone knows the answer - why are there always guys outside the stadiums buying extra tickets right before the game?

they're not - they're selling tickets. You just can't technically say that.

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9 minutes ago, Dick Allen said:

They should talk to each other considering they do have an agreement. But you are right, the Sox didn't really lose $1 million here. The people who probably lost most were other Stubhub sellers.  And the Sox do get a percentage of the Stubhub price, which means they got money for comp tickets. The Sox made money on concessions and parking, so overall, it probably was a wash at worst. But still, slimy as can be.

I'm pretty sure the team only gets a percentage when they're the ones selling the tickets, no? I don't think the team gets percentages of resold (secondary market) tickets. Teams would be double dipping then.

I know there was some backlash of teams selling things straight to secondary markets and getting the benefit of the inflated costs without ever allowing people to buy them at retail.

Edited by Look at Ray Ray Run

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7 minutes ago, Look at Ray Ray Run said:

they're not - they're selling tickets. You just can't technically say that.

Makes sense. Thanks.

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11 minutes ago, Look at Ray Ray Run said:

I'm pretty sure the team only gets a percentage when they're the ones selling the tickets, no? I don't think the team gets percentages of resold (secondary market) tickets. Teams would be double dipping then.

I know there was some backlash of teams selling things straight to secondary markets and getting the benefit of the inflated costs without ever allowing people to buy them at retail.

They get a fee and an undisclosed share of the revenue from each ticket sold on Stubhub.

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