Recent SEC filings show that Stubhub CEO, Eric Baker, had financial ties to a hedge fund that profited from ticket scalping on Stubhub.
Stubhub calls itself a neutral marketplace for tickets. It connects buyers and sellers but is not a ticket seller itself.
A recent investigation by the Canadian Broadcast Company found that the company’s CEO was involved with the hedge fund Andro Capital, which resold millions of dollars worth of tickets on the marketplace.
Critics say this is a stark conflict of interest.
Randy Nichols is a representative of the National Independent Talent Organization. He’s been following ticket scalping operations for the past few years.
"They're going out and using bots to buy tickets faster than fans can, and then reselling those tickets to fans at a significantly higher price," says Nichols.
For Nichols these findings highlight the need for bills like AB 1720 also known as the California Fans First Act. The bill seeks to cap the value of a ticket resold online at 10% above the original price in small venues. In the bill small venues are defined as venues with less than 3000 person capacities.
"We need laws to stop these people, and AB 1720 should be expanded to cover all concert venues, not just small venues," says Nichols.
In response to the SEC’s findings Louis Sanquini, a Stubhub ticket buyer, filed a $5 million class action lawsuit against Stubhub in New York’s Southern District on Monday.
Stubhub did not respond in time to KALW’s request for comment.
