Wednesday, October 24, 2007

TO SCALP OR NOT TO SCALP? THAT IS THE LEGAL QUESTION

By Scott Daniels, Esq., NFL Draft Bible

I just got back from overseas and I couldn't help myself from researching this topic that almost every sports fan can identify with. While in London, I went to an English football match and paid double the face-value for a ticket. Some would say that's ludicrous. Others would say I got a good deal.

Take the New England Patriots. They have developed into a dynasty and their domination does not seem like it's ending anytime soon. Getting a ticket to a Patriots home game is near impossible, but not impossible. That's where the wonderful world of ticket scalping comes into play. Brokers are well aware of current markets. They know a hot ticket when they see it. They also know that die-hard fans will pay any amount to see their team take the gridiron.

Unfair? Maybe. Others would disagree and say that this is a capitalistic society and if people are willing to pay top-dollar for a game ticket, than so be it. But is it legal?

New York is the biggest market in the country for ticket scalpers. It wasn't until earlier this year that New York Governor Eliot Spitzer signed a bill eliminating all pricing restrictions on the resale of tickets. While ticket brokers can now charge whatever they please, the law does bar scalpers from operating within 1,500 feet of a large stadium. Therefore, to stay legal, scalpers in New York must sell their merchandise outside the confines of the stadium. Enter Stubhub, EBay, Craigslist and a plethora of on-line ticket brokers.

Other states have began to lift their price restrictions as well. Florida used to prohibit scalpers from selling a ticket for more than $1 above face value. In fact, it was a second degree misdemeanor. In June of 2006, Jeb Bush signed a bill essentially creating a free market system allowing brokers to charge any price.

Under Pennsylvania's old state law, only "licensed" brokers could resell tickets for a maximum of twenty-five percent above face value. Earlier this year, Governor Rendell removed the cap and simply required the seller to give a refund if the event is cancelled or the ticket is not valid upon entry. Good luck locating your friendly broker for a refund if you are denied entry to a Cowboys Eagles Monday Night showdown.

In contrast, the state of Massachusetts, home of the Patriots, Celtics, Bruins and Red Sox, has an antiscalping law that dates back to 1924. Their law prohibits scalpers from reselling tickets for more than $2 above face value. While this seems like an archaic law, it is rarely enforced and practically ignored.

Due to the constant increase in ticket prices, more and more states are beginning to lift restrictions off scalping. The rationale is that if people are willing to pay an astronomical amount for tickets, why prevent the broker from making a profit? It's simple supply and demand. Whether or not you agree with it, it's the reality in today's sports world.

The scalper will always be there. He's been there even when state's had laws preventing them from selling above face-value. He can be a cruel individual who won't negotiate under any terms. He can also be your key to the game. It's a love-hate relationship with the scalper - and while you can't be sure which arm or which leg he will be charging for that ticket, you can be sure he will co-exist with professional football forever.

1 comment:

Unknown said...

trying to police this is a losing battle...just like gambling, prostitution, drugs etc., its going to happen no matter what.