StubHub International has issued a stark warning that it may cease its operations in the United Kingdom should the government move forward with plans to implement a cap on the resale prices of event tickets. The Department for Culture, Media and Sport is considering regulations that would limit tickets from being resold either at their original purchase price or at a maximum of 30 percent above that face value. These measures come amid growing political momentum to tackle what is seen as exploitative ticket reselling, particularly in the wake of widespread fan frustration following incidents like the Oasis reunion tour ticket fiasco.

Bob Kupbens, StubHub International’s CEO, expressed to the Financial Times that even a 30 percent markup ceiling would present significant operational challenges. He stated that under such conditions, StubHub could no longer offer its hallmark FanProtect guarantee, alongside its customer service and refund policies, which incur real costs and rely on resale margins to be financially sustainable. Kupbens warned that restrictive pricing policies would likely push consumers to informal resale channels on social media, often dubbed “black markets,” where buyer protections and fraud prevention measures are minimal or nonexistent. This, he argued, would increase risks for fans rather than reduce them.

The UK government’s move to impose resale price caps reflects wider efforts to safeguard fans from ticket touts who bulk buy tickets only to profit by reselling them at vastly inflated prices, often many times above face value. These legislative proposals also include limiting the number of tickets resellers can list for sale and enhancing the responsibility of resale websites to provide accurate information, as enforced by Trading Standards and the Competition and Markets Authority (CMA). The CMA has been particularly vocal after investigations into dynamic pricing practices, which saw tickets for high-profile events like the Oasis reunion sold at artificially high prices through primary vendors before subsequently appearing at exorbitant rates on secondary sites.

Industry insiders recognise that StubHub’s threat to leave the UK market would be a major blow to the resale ecosystem, as the country constitutes the company’s single largest market in Europe. This is largely due to the Premier League’s global appeal and the UK’s vibrant live music circuit, exemplified by venues such as Wembley Stadium and the O2 Arena. Analysts note that resale platforms operate on narrow margins once fees, payment processing, and customer service costs are taken into account. With a cap in place, platforms may either withdraw from the market or reduce the protections they currently offer fans, neither of which would benefit consumers.

Critics of price caps argue that such regulations do not address the root causes of inflated ticket prices, notably primary market tactics like dynamic pricing. Instead, they contend that capping resale prices drives ticket sales underground, fostering unregulated markets where scams are rife. Supporters, including many fans and consumer protection advocates, maintain that professional speculators unduly profit at the expense of genuine enthusiasts and welcome the government’s intervention as a way to usher in greater fairness and transparency.

The UK government has initiated a public consultation to gather opinions on these proposed measures, emphasising its intent to create a fairer resale market and to curb profiteering from live event tickets. This consultation, which runs until April, also explores possibilities such as setting limits on the number of resale tickets per seller and creating new obligations for ticket resale platforms to accurately represent ticket information. These efforts build on the government’s previously announced crackdown on ticket touting and the push to protect fans from exploitative practices.

In sum, the unfolding debate over ticket resale regulation in the UK highlights the complex balancing act between protecting fans, maintaining business viability for resale platforms, and addressing exploitative practices both in the primary and secondary markets. StubHub’s warning underscores the commercial realities faced by resale operators, while policymakers continue to grapple with how to craft rules that curb excesses without inadvertently pushing fans towards riskier, unregulated ticket exchanges.

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Source: Noah Wire Services