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Teams taking closer look at secondary market
CHICAGO (AP) - Chipper Jones was down to the final few games of his distinguished career when the Atlanta Braves opened a series at Pittsburgh last month. The Pirates, who play in one of the majors’ most picturesque ballparks, were closing out their best season in 15 years.
There were lots more bargains on that Oct. 1 slate of games. Two seats at Wrigley Field were available for six quarters, but you had to watch the Chicago Cubs take on the lowly Houston Astros. Miami’s new ballpark had 881 tickets listed on StubHub for less than $5 apiece.
“For baseball games, it has been great because I spend a lot less money than I would if I was buying the tickets from Cubs.com,” said Josh Shpayher, an attorney from Skokie who recalled paying more in taxes and fees than he spent on four tickets in one purchase on the website.
Such bargains have been a joy to fans but are drawing increased attention from sports teams concerned about the effect of the cheap tickets on their ability to sell their remaining inventory. It could mean subtle changes that impact how fans get into their favorite stadiums, ballparks and arenas across the country.
Major League Baseball Advanced Media and StubHub are in negotiations over the website’s role as the official secondary ticket market for MLB after their first deal expired following this season. The NBA partnered with Ticketmaster to create a website which went live last month and is both a primary and secondary ticket outlet.
“The secondary market isn’t going away,” Minnesota Twins President Dave St. Peter said. “It’s always going to be a significant part of the ticket procurement process and an option for fans. As we focus on the primary market, we also have to look for ways to make sure the secondary market will not be a hindrance to the primary market.”
Baseball’s agreement with StubHub essentially means the website provides a secondary online platform for any team that wants one. Both sides seem to want to continue the partnership, but have yet to announce a new deal. One of StubHub’s central tenets is a free market, with no ceilings and floors, and baseball could be pushing for more control over ticket prices, possibly complicating the discussions between the sides.
“We have seen benefits,” he said Tuesday. “While some of those are economic, the most important benefits have come from the amount of data that we have been able to have both on the buying and selling side, which will be very important as we formulate our future plans for the secondary ticket market.”
Joellen Ferrer, a spokeswoman for the website, declined to comment when asked about the status of the negotiations. She also declined to comment when asked about the San Francisco-based company’s relationship with Major League Baseball.
“It’s been talked about, some type of a floor,” St. Peter said. “Whether that will be a reality, I don’t know. Some of the timings of offerings as well, maybe establish a window by which offerings for game tickets at certain levels are taken down. A lot of this is a promotional issue.”
“We don’t have a relationship with Ticketmaster because Major League Baseball’s preferred ticketing method is through tickets.com, which it owns. So we wouldn’t likely do a deal with Ticketmaster. We’d be more likely do a deal with StubHub.”
StubHub struck one of its first major sports deals with the Seattle Mariners in 2001 and has separate partnership agreements with about half of the 30 major league teams, covering everything from signage to promotions. It signed a five-year deal to become the “Official Fan to Fan Ticket Marketplace” for MLB.com in 2007.
John Davis, the vice president for ticket sales for the Cincinnati Reds, said the relationship with StubHub “provides valuable insight and data into the secondary market that we wouldn’t have otherwise.”
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