Two interesting articles about ticket touts, a subject much discussed recently in recognition that they are unlikely to go away. The FT reported that Madonna is endorsing the sell-on of concert tickets, condemned by some concert promoters as scalping or touting, by making two leading companies in the secondary ticket market official partners for her forthcoming Sticky & Sweet tour of North America and Europe. Secondary ticketing companies enable the public to trade their tickets online with customers who are prepared to pay above their face value. The company takes a cut of about 10 to 15 per cent. Many sports promoters complain that they are not getting any share of the premium on these ticket sales and concert promoters in the UK have pressed unsuccessfully for the government to outlaw the practice. Madonna endorses seconday ticket marketsAccording to The Observer ticket touts will make more than £10m in the next week by cashing in on the success of Britain's football teams in Europe and at home But potential buyers are warned to be wary. It is illegal to resell football tickets in the UK - unless it is through an official, recognised third party. However, many of the online firms are able to flout the law by operating offshore, out of reach of the UK authorities. Details here.
Think about the market conditions that enable secondary markets (ticket touting) to exist. Should the law be used more effectively against them or should they be allowed to trade under certain conditions (eg give a percentage of the earnings back to the original body that issued the tickets)?
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