Unable to stop the scalpers completely, the owners realize the excess revenue that could be generated by entering and controlling the secondary market for tickets. The owners decide to set up a sham brokerage firm as a subsidiary, then take a bunch of tickets for their team’s home games and sell them to the firm. Fans are told that games are “sold out” but that some tickets may still be available through a “certain” firm. The firm, of the same ownership as the team, then sells the tickets to fans above face value.
This is how the Chicago Cubs scalp their own tickets, and stick it to fans.
In February 2002, the Tribune Company, owners of the Chicago Cubs, incorporated Wrigley Field Premium Ticket Services (Premium), “to compete in the profitable business of brokering Cubs baseball tickets.” Premium then began selling (scalping) Cubs tickets above face value. A class action lawsuit soon followed on behalf of irate Cubs fans against the Cubs alleging that the common ownership between the Cubs and Premium violated the Illinois Ticket Scalping Act.
But the court determined that Premium was an independent broker, and that current Illinois law permits this relationship. This despite Premium’s president serving as a vice president of the Cubs, Premium’s office location a block from Wrigley Field on property leased by the Tribune Company, and its books kept by the Cubs’ accounting department.
An appeals court upheld the lower court’s ruling last month, confirming that, in Illinois, a sports team may openly scalp tickets under such a format.
Derek Zumsteg has more, from ESPN’s Page 2.
Sports Forum Podcast
Episode #17 – League of Fans’ Sports Forum podcast: Talking Sports With Legendary New York Times Sports Columnist Robert Lipsyte – We chat about Lipsyte’s amazing career and some of the athletes he covered and got to know well, like Muhammad Ali, as well as his relationships with fellow sports journalists like Bob Costas and Howard Cosell.
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Episode #16 – League of Fans’ Sports Forum podcast: Andrew Maraniss: Outstanding Author of Books That Focus On the Intersection of Sports, History and Social Justice.
Episode #15 – League of Fans’ Sports Forum podcast: Talking Sports Psychology with Dr. Tim Rice. We discuss the growth of sports psychology at all levels, the positive impact that a number of high profile athletes have had by opening up, and the importance of everyone involved in sports caring for the whole athlete, mind and body.
Episode #14 – League of Fans’ Sports Forum podcast: Making Sense of the Injury Pandemic in Major League Baseball – Gary McCoy is a strength, conditioning and high performance coach who has worked with several Major League Baseball organizations.
Episode #13 – League of Fans’ Sports Forum podcast: A Conversation With Long-Time MLB Exec Dan Evans About What’s Right With Baseball and What Could Be Better – Evans is a former general manager for the Los Angeles Dodgers and is currently a consultant for Go the Distance Baseball, which owns the Field of Dreams movie site.
Episode #12 – League of Fans’ Sports Forum podcast: A Fun Chat With Dan Gutman, Author of the Baseball Card Adventure Series for Kids
Media"How We Can Save Sports" author Ken Reed appears on Fox & Friends to explain how there's "too much adult in youth sports."
Ken Reed appears on Mornings with Gail from KFKA Radio in Colorado to discuss bad parenting in youth athletics.
“Should College Athletes Be Paid?” Ken Reed on The Morning Show from Wisconsin Public Radio
Ken Reed appears on KGNU Community Radio in Colorado (at 02:30) to discuss equality in sports and Title IX.
Ken Reed appears on the Ralph Nader Radio Hour (at 38:35) to discuss his book The Sports Reformers: Working to Make the World of Sports a Better Place, and to talk about some current sports issues.
Sports & Torts – Ken Reed, Sports Policy Director, League of Fans – at the American Museum of Tort Law
League of Fans is a sports reform project founded by Ralph Nader to fight for the higher principles of justice, fair play, equal opportunity and civil rights in sports; and to encourage safety and civic responsibility in sports industry and culture.
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Ken Reed’s Author Page on Amazon