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January 04, 2008

Let The Yankees Season Ticket Seller Beware

On the Yankees site, in their 2008 Season Ticket Licensee Renewal Letter, it reads:

Yankees Secondary Ticket Marketplace: StubHub has been selected by MLB as the Official Ticket Marketplace of MLB.com and the Yankees. Commencing for the 2008 season, you may post Yankees Tickets for resale on StubHub through www.yankees.com with no restrictions on resale price. For more information, please visit www.yankees.com.

Resale of Ticket(s): Any direct or indirect sale, resale, auction, assignment or transfer (collectively, "resale") of Tickets must be done in accordance with applicable law. Any resale or attempted resale in violation of applicable law violates this License. New York State law prohibits the resale of any Ticket(s) within one thousand five hundred feet from the physical structure of the Stadium under penalty of law. No Ticket(s) may be used for advertising, promotion (including contests, giveaways or sweepstakes), or other trade or commercial purposes without the express written consent of the Yankees. Any violation of the License shall give the Yankees the unrestricted right to revoke this License, terminate this License and/or cancel the Ticket Account immediately. The Licensee is absolutely responsible for any violation of the License and should safeguard the Ticket(s) so that the License is not violated. The Yankees reserve the right to investigate violations of the License. The failure of the Licensee or any person in possession of the Ticket(s) to cooperate with any investigation constitutes a violation of the License.

These two policies, as a combination, concerned me a bit. So, I contacted a high ranking party in the Yankees Ticket Operations department and asked them:

If a Yankee season ticket holder were to sell their tickets on StubHub and then the person who buys them sells them “within one thousand five hundred feet from the physical structure of the Stadium,” would the season ticket holder then lose their license? Or, would the Yankees work with StubHub to verify that the tickets were sold by the season ticket holder and then they (the season holder) would be relieved of what happens with the ticket after the sale?

And, this was their answer to me:

The Licensee is absolutely responsible for any violation of the License and should safeguard the Ticket(s) so that the License is not violated.

So, if you're a Yankees season ticket holder, and you're thinking of selling some of your tickets this season on StubHub, you may want to think twice about it - because, if the person who buys your ticket (with your account number printed on it) does something bad with it, the Yankees are keeping you on the hook for it.

Posted by Steve Lombardi at January 4, 2008 01:13 PM

Comments

wow.

Posted by: Corey [TypeKey Profile Page] at January 4, 2008 01:42 PM

At first, I was annoyed, but not shocked, to hear this from the Yankees. But, after thinking about it for an hour or so, I think I understand it.

Suppose that you wanted to scalp tickets and keep your hands clean – StubHub would be a great way to launder the tickets. You could get a season ticket account, buy the tickets at face value, then sell them to a friend or family member via StubHub at face value (or whatever price) and then that person could give you the tickets back to scalp somewhere at a huge mark-up, etc.

And, by “turning them over” via StubHub, first, you, as the season ticket account holder, would be free of anything coming back to you, etc.

This is, of course, if the Yankees would give you a buddy-pass once you sold them on StubHub – which is probably part of the reason why they’re not willing to let you off the hook.

This make sense?

Posted by: Steve Lombardi [TypeKey Profile Page] at January 4, 2008 01:54 PM

This is a nonsensical policy. The logic of StubHub is to sell tickets to strangers. If you know the buyer, then why use the service? The management of the Yankees is endorsing and profiting from a service designed for selling to strangers and at the same time holding the seller responsible for the conduct of the buyer. How does that make any sense? It’s ironic that the management would be so disrespectful of their loyal customers, who are both supporting the team financially and following its rules.

I appreciate your informing us about the team’s policy, Steve, but I object to your defense of it. The way to handle the hypothetical you pose is to hold StubHub purchasers accountable. If a buyer violates the team’s policies, then ban him from purchasing from the team and from StubHub. That makes a lot more sense then holding someone responsible for the conduct of a stranger. In other words, deal with the moral hazard directly.

Management’s policy on this makes me question its competence and/or whether it respects rule-following fans.

Posted by: Anton [TypeKey Profile Page] at January 4, 2008 11:45 PM

Here's what you have to remember:

- The Yankees *vehemently opposed* the MLB/Stubhub deal. They didn't want it in any way shape or form.

- The Yankees original terms (prior to the change in NYS law last year) was that you couldn't even legally *give* the tickets away to your friends and family without risking loss of the License.

This is the Yankees doing their best to "get what they wanted all along" within the bounds of the rules that have been established around them. In other words, they never wanted season ticket holders selling or giving away tickets *anyway*. So if the law says they can't penalize you for *selling* them? OK, they won't. If MLB says they have to allow Stubhub to be a broker for them? OK, I guess they will. But to expect them to completely roll over whenever they can find a loophole to try and use to scare STHs into not selling their tickets, after all they've been through on that front, is not terribly realistic.

Posted by: Derek [TypeKey Profile Page] at January 5, 2008 09:33 AM

Anton - FWIW, I'm not defending it - I'm just saying that, at first, I was just ticked, and just ticked alone. But, now, I can sort of see their angle, maybe...but, for the record, I'm still bummed out about it.

Posted by: Steve Lombardi [TypeKey Profile Page] at January 5, 2008 09:35 AM

~~This is the Yankees doing their best to "get what they wanted all along" within the bounds of the rules that have been established around them. ~~

Excellent point.

Posted by: Steve Lombardi [TypeKey Profile Page] at January 5, 2008 09:36 AM