Is StubHub’s MLB catch good for fans?

Steve Henn Aug 2, 2007

TEXT OF STORY

Scott Jagow: In pro sports, ticket scalping is — let’s face it — part of the game. So much so that a lot of teams have set up Websites where fans can re-sell the seats they aren’t using.

And today, Major League Baseball will announce a deal with StubHub — that’s the online ticket reseller owned by eBay. More now from Steve Henn.


Sound — cheering at ballgame: Let me hear you, everybody! A one-ah two-ah three! Take me out…

Steve Henn: The deal gives StubHub the exclusive right to set up shop on Major League Baseball team Websites. So if you go to a team site looking for a seat you’ll have more choices. But there’s a catch:

Russ Haven: It’s going to lead to higher ticket resale prices.

Russ Haven from the New York Public Interest Research Group’s a critic of the big fees charged by StubHub, which takes 25 percent of the ticket price. He thinks this deal will make those fees worse.

Haven: It also means that no competitor can come into the marketplace and say “Hey, we can undercut those fees.”

Cash-strapped fans aren’t the only ones likely to call foul. Ticketmaster currently has deals with a dozen major-league teams to resell tickets. The company had no comment yet.

Sound — cheering at ballgame: Let me hear you, everybody! A one-ah two-ah three! Take me out…

In Washington, I’m Steve Henn for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.