In defense of the secondary ticket industry
This e-mail to Daily Planet arts editor Jay Gabler is published with the permission of its author, who is director of operations at Ticket King Minnesota, a ticket brokerage based in Minneapolis.
I felt the need to follow up with you on your article relating to the secondary ticket market. While we remained neutral on the paperless ticketing bill that was in the legislature last session, it is necessary to point out the blatant inaccuracies of your article in relation to this industry.
First, regarding the taxation issue: as the largest local ticket brokerage in the state, I can assure you that the state is receiving their cut of the taxes from secondary market sales. We spend countless man hours and money ensuring that our accounting system is in line with the guidelines laid out by the Department of Revenue. To claim that taxes are not being charged on sales in the secondary ticket market is just ignorant.
Second, the notion that fans will at some point in the future "scalp" their own tickets: this is already the reality of the music industry. Musicians are "scalping" their own tickets, sometimes via Ticketmaster, sometimes through their own websites.
Third, you failed to note the fact that while some tickets sell for much more than the face value, there is no price floor in the secondary market like there is in the primary. When was the last time you saw ticket going for less than face value on Ticketmaster or an artist's site at the last minute? That's right—you haven't ever seen that. Because artists, teams, and venues won't allow a true free market by removing price floors. The secondary market, on the other hand, sells 40% of its tickets below the face value of the ticket. The secondary ticket market is one of the truest displays of free market economics in the nation, according to leading free market economists.
I understand that there are some people that do not have an appreciation for the secondary ticket industry. But before publishing a one-sided story that is full of erroneous information, I would encourage you to do a little more homework next time.
The Twin Cities Daily Planet is an edited news source produced by professional journalists working in collaboration with citizen journalists from the local community. We publish original reported news articles, articles republished from media partners, and some content (Free Speech Zone articles, reader-submitted blog entries, comments) that is moderated but not edited. Click here for a complete description of our editorial policies. Support people-powered non-profit journalism! Volunteer, contribute news, or become a member to keep the Daily Planet in orbit. |
We're people-powered journalism! Click on story links (below) to see more story information, and then email editor@tcdailyplanet.net if you want to report.
Comments
How can this be a one-sided argument? So blind...
"They" only cry about the couple big events (when something actually become a big event) that they must either pay up for or not attend at all. Always failing to see the numerous pros because tickets are expensive 11% of the time. Anyone who can completely dismiss the convenience or value of even being able to purchase something for a one off event the day before or day of when others invested 5 months before hand. It's not for everyone folks - pick a May Tuesday baseball game vs. July Saturday if you thrive on value. The initial investment and overall picture on true end profit is something these babies can't comprehend apparently.....ugh Blind, selfish consumers and big babies have been driving this unfound argument for years. A real licensed, taxpaying broker is a business and stay in business by being fair to clients and marketing for the long run. I own a small company in MA where the average consumer understands supply and demand or an open free market based commodity and see the value but it's still a huge stigma that really is unfounded like I said. The fraud is unfortunate of course but there's plenty of ways to avoid it. It's 90% on the street where you seek a "deal" and have no recourse. Smart people don't get burned often if ever, resourceful people find deals and know better but for the rest of you cry babies who want it all and offer nothing to help yourselves. Honestly, what can anyone say or do for you??? Peace
taxes
Wow ! Now we have those who can simply look at someone and tell if they are paying their rightful taxes? Hmmm Washington D.C. could use someone with your talents. As matter of fact you can start with the politicians and move to CEO's attorneys doctors etc...And you want to point out a "street scalper" ? Really ? Too funny !!
Taxes
Please remember that a large group of the people selling tickets outside of events here are using product that is on consignment from groups like Ticket King. Those people who you think don't pay taxes also dont purchase tickets in advance.
I also want people to know that as a secondary market, I often end up losing money on tickets. There is a percentage I sell in advance for a premium, but ofter, outside of a show, I am breaking even or losing. Also, many of my buyers are paying more than face. Yet I spend hours standing in line, posting my tickets, waiting for buyers, getting stood up, and so on. It's not easy money, I provide a service people want, I get treated like a leper, but this is what I do so I don't have to work 9-5.
Nate
taxes...
Cortney,
While Ticket King and more "legit" Ticket brokers may pay taxes on secondary market tickets, there are NUMEROUS scalpers who do this on the side and do not pay a single dime in taxes on their earnings. Next time there's a big show at Xcel or Target Center I'd be happy to go down there with you and point them out to you.
Please point out the people
Please point out the people at Target Center and Xcel energy that are making money and not paying taxes. And then go there for the next 10 shows and see if they're still making money or losing money overall. Better yet, see what Twins tickets are going for in April, May or September v what they cost the buyer. Pennant race or not!
Post new comment