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 #28 – League of Fans’ Sports Forum podcast: A Chat With Mano Watsa, a Leading Basketball and Life Educator – Watsa is President of PGC Basketball, the largest education basketball camp in the world, with over 150 camps in 30+ U.S. states and Canada. We discuss problems in youth sports today, including single sport specialization, the growing gap between the “haves” and “have-nots,” the high drop-out rate in competitive sports, and the growing mental health challenges young athletes are dealing with today.
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Episode #27 – League of Fans’ Sports Forum podcast: Kids’ Sports: How We Can Take Back the Game and Restore Quality Family Time In the Process – Linda Flanagan is author of “Take Back the Game: How Money and Mania Are Ruining Kids’ Sports and Why It Matters.” We discuss how commercialized and professionalized youth sports are hurting kids and their families.
Episode #26 – League of Fans’ Sports Forum podcast: How Can We Fix Youth Sports? – John O’Sullivan is Founder and CEO of Changing the Game Project and author of “Changing the Game: The Parents Guide to Raising Happy, High Performing Athletes and Giving Youth Sports Back to Our Kids.”
Episode #25 – League of Fans’ Sports Forum podcast: Physical Education Should Be a Critical Component of K-12 School Design – Michael Horn is co-founder of the Clayton Christensen Institute for Disruptive Innovation.
Episode #24 – League of Fans’ Sports Forum podcast: Mental Health and Athletes: Ending the Stigma – Nathan Braaten and Taylor Ricci are the founders of Dam Worth It, a non-profit created to end the stigma around mental health at colleges and universities through sport, storytelling, and community creation.
Episode #23 – League of Fans’ Sports Forum podcast: Olympian Benita Fitzgerald Mosley Talks Title IX, Youth Sports and the Olympics.
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.
- League of Fans Sports Policy Director Ken Reed quoted in Washington Post column titled "What happened to P.E.? It’s losing ground in our push for academic improvement," by Jay Mathews
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.
Vanderbilt Sport & Society - On The Ball with Andrew Maraniss with guest Ken Reed, Sports Policy Director for League of Fans and author of How We Can Save Sports: A Game Plan
Sports & Torts – Ken Reed, Sports Policy Director, League of Fans – at the American Museum of Tort Law
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Ken Reed’s Author Page on Amazon