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 #10 – League of Fans’ Sports Forum podcast: An Issues Discussion With Paul Dolan – Dolan is the Cleveland Indians Owner and CEO. He discusses the use of Native American names and logos by sports teams and the decisions to drop the Chief Wahoo logo and the upcoming change to the team name. Other baseball topics include health and safety, possible MLB rule changes and youth participation in the sport.
Follow on Facebook: @SportsForumPodcast
Episode #9 – League of Fans’ Sports Forum podcast: Talking Sports Issues With Ralph Nader – Nader is a consumer advocate and was named one of the “100 Most Influential Americans of the 20th Century” by Time magazine. He is the founder of League of Fans.
Episode #8 – League of Fans’ Sports Forum podcast: How Can We Save College Sports From Overcommercialization and Professionalization? – The guest is Dr. David Ridpath, a sports business professor and past president of the Drake Group
Episode #7 – League of Fans’ Sports Forum podcast: Brain Trauma and CTE Risk in Sports With Dr. Ann McKee – Dr. McKee works in the field of neuropathology and has demonstrated that “mild” repetitive head trauma can provoke chronic traumatic encephalopathy (CTE), a devastating neurodegenerative disease.
Episode #6 – League of Fans’ Sports Forum podcast: The Need for Quality Physical Education in Our Schools is Greater Than Ever – The guest is Clayton Ellis, one of our nation’s leading advocates for getting our young people to be more physically active.
Episode #5 – League of Fans’ Sports Forum podcast: Youth Sports with Positive Coaching Alliance Founder Jim Thompson – Thompson started Positive Coaching Alliance (PCA) in 1998 to help create a movement to transform the culture of youth sports from “win-at-all-costs” to a positive, character-building experience.
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