TICKET SCALPING

The selling of tickets more than face value. [source: PAFM]

Scalper:  

In general: speculator who enters into quasi-legal or illegal transactions to turn a quick and sometimes unreasonable profit. For example, a scalper buys tickets at regular prices for a major event and when the event becomes a sellout, resells the tickets at the highest price possible. [source: http://www.answers.com/topic/scalper-3?cat=biz-fin]

Consumer Reactions / Opinions of Scalping

• Reasons Against Scalping
  • Illegal
  • Forces the consumer to potentially pay more than face value at a sold out venue.
  • Large amount of tickets in prime seat locations are bought out quickly thud forcing the consumer to abandon regulated and legitimate ticketing operations.
  • Tickets may go unsold therefore taking potential money away from the artist and facility.

• Reasons For Scalping
  • First come first served theory - I should have the right to purchase as many tickets as I want.
  • Profit potential.
  • Competitive pricing opportunity.
  • Allowable in some states.

What's This Column Without Scalpers(taken from Texas A&M Athletic Director Bill Byrne's Wednesday Weekly)

This column wouldn't be complete without tales of scalpers. I saw my same friendly scalper that you read about two weeks ago. When he saw me walking up, he scampered across the street.

Heavy scalping has become a problem on Wellborn because the crafty resellers have taken to the middle of the street for negotiating through the windows of cars stopped at red lights. When the light changes, they're holding up traffic.

It's disturbing to learn, too, that some of our fans are selling their valuable parking permits. First of all, that's a violation of University policy and makes the seller subject to arrest. Second, these are not just any parking spots, they're prime spots. Given how hard it is to manage parking with all the cutbacks and rearranged lots because of construction, we'd hope that you would give the permits to the athletic department so we can allocate them to donors.

Somebody asked why scalping was such a problem. The biggest pitfall is counterfeiting. That's why our partnership with StubHub! is good, because they are bonded and you are assured of receiving actual tickets. With our sophisticated scanner program that we put in place, nobody can get in with a counterfeit ticket – and you sure don't want to pay major dollars for tickets that won't get you in.

Website References:

http://www.cga.ct.gov/2006/rpt/2006-R-0761.htm

This website reports on the different state laws on ticket scalping. Kind of interesting.

http://www.usatoday.com/sports/nfl/super/2001-01-23-scalpers.htm

This website reports on the ramifications of scalping and also how scalpers try to legitimize their business practices.

http://www.prweb.com/releases/2006/2/prweb342706.htm

This website provides an an actual example of how scalpers were profiting during the 2006 World Cup.

http://www.gothamgazette.com/article/issueoftheweek/20070716/200/2229

This website provides current trends in the scalping community.

 Video Clips

 Scalpers at work.

Legalized Ticket Scalping?

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