Fans are now comfortable with the online options available to them, and they want an easy way to find tickets to the Super Bowl, NBA Finals, or just about any other major sporting event. But that was n’t always the case.
Microsoft co-founder ( and then-Portland Trail Blazers owner ) Paul Allen acquired 80 % of Ticketmaster in 1993 for roughly$ 300 million, just after the ticket service announced a partnership with America Online that would allow Chicago fans to—get this —” sort through concert and sport schedules and buy tickets”, all from their personal computers. Sometimes Allen saw what was coming.
Now, tickets are almost entirely bought and sold ( and sometimes resold ) online today, and Ticketmaster currently serves about two-thirds of U. S. demand. Ticketmaster’s parent company Live Nation Entertainment is worth more than$ 22 billion. The Court is also suing the organization, alleging that it has an unlawful monopoly over life concerts.

At the same time, Ticketmaster’s rivals has grown. Although different websites have the ability to display the same amount of cards, the rates frequently differ due to the underlying business model and price structures.
What transpires behind the scenes at the most well-known activities ticketing sites.
Fees are frequently added to the ticket price, whether fans purchase tickets from a team directly from a team via a platform partner ( primary market ) or from a reseller, including brokers with team tie-ups ( secondary market ).
The biggest main marketplaces charge fees to the purchaser, often broken down into parts such as” service”, “processing” and “facility” costs. In order to manage their major inventory, several teams and sports venues have special agreements with individual ticket brokers. For instance, Ticketmaster is the main ticket companion for most NFL clubs, though SeatGeek has done talks with the Arizona Cardinals, Dallas Cowboys, New Orleans Saints, Washington Commanders, Baltimore Ravens and Tennessee Titans.
Both Ticketmaster and SeatGeek offer fan-to-fan listed tickets as well as immediate offerings. As well as newer entrants like Vivid Seats and TickPick, Hubhub has conducted major deals, but it primarily concentrates on the secondary market.
A report from the US Government Accountability Office found that primary and secondary booking companies each billed full fees of approximately 30 % of the purchase price in 2018. However, in individual cases, that number may range from 13 % to 58 %. Yet programs can demand different fees for various events.
Ticketmaster says that, at least in the case of concerts, the company usually receives one-third of a claimed service fee, with the remainder going to the place. After covering expenses, it aims to make 2 % of the regular ticket cost in revenue. As its web explains, costs “are determined by and shared between the parties who have a finger in making life situations happen including facilities, Ticketmaster, athletics teams, leagues and promoters”.

In activities, the group usually sets ticket prices, featuring season-long items, limited season deals and single-game rates—the last of which can differ based on the quality of the game being played.
For secondary marketplaces, fees are generally charged to both buyer and seller. In some circumstances, fees added at checkout can be as much as$ 500 per ticket. On its website, StubHub says,” There is no set percentage for fees, and fees can change based on ticket price, time to event, updated event information and supply and demand”.
GAO investigators also found that fees frequently remained hidden until the transaction was complete. A 2021 study found that the last-minute fee strategy ( sometimes called “drip pricing” ) convinces interested parties to spend 21 % more on tickets than when they’re shown all-in pricing up front. According to UC Berkeley business school professor Steve Tadelis,” I ca n’t think of a good reason to allow this practice in any country because our study has demonstrated that the harm to consumers is clear.”
Canada, which settled a deceptive pricing lawsuit with Ticketmaster in 2019, has banned the tactic. The company paid$ 4.5 million in that deal.
In a settlement with a US court case involving allegedly false advertising tied to listed prices, StubHub agreed to pay more than$ 20 million in cash and credit to consumers in 2022.
As of summer 2024, Live Nation ( which owns Ticketmaster ) is worth$ 22.7 billion. Despite being privately held, StubHub reportedly has been considering an IPO for$ 16.5 billion. SeatGeek, meanwhile, almost went public last year in a$ 1.4 billion deal. Vivid Seats, which is publicly traded, currently has a market cap of$ 1.1 billion.
Put together, those marketplaces are roughly worth the same as all 32 NHL teams combined, according to Sportico’s valuations.
With so many ticketing sites running today, many fans wonder about the ability to cross-sell: to take tickets they bought on Ticketmaster and sell them via StubHub, for instance. The majority of platforms lack this functionality in mind when they are being created. However, StubHub and other marketplaces offer sellers the option to complete the transaction using Ticketmaster or other app’s transfer tools. In some situations, the selling marketplace needs to know whether the final decision has been made.
It’s worth noting that some tickets are non-transferable, making the process more difficult. Others have gotten around the limitations. ” Scalpers have solved almost every restriction that Ticketmaster has implemented”, 404 Media recently reported.
Software options for professional brokers enable the listing of tickets on multiple major online stores without the possibility of buying the same item twice on different websites.
In general, “all-in pricing” refers to showing the total cost—including fees—in the original listing, rather than adding fees in later. Today, artists, venues and sports teams can choose to have primary ticket prices display all-in rates up front. Some platforms also promote the feature.
The TICKET Act, which would require the total prices to be displayed, was passed in the U.S. House of Representatives in May. It also would outlaw the practice of resellers who offer tickets that they have yet to purchase themselves.
In May, the Justice Department, along with 30 state and district attorneys general, filed a civil antitrust lawsuit against Live Nation. According to the 124-page lawsuit, the company has “built illegal monopolies” in both concert promotion and ticket sales.
Since then, the business has defended its practices, settling in for what will likely be a protracted legal battle. Early on, experts have questioned the strength of the government’s case.
Fans are more likely to experience changes in the near future thanks to potential legislation that would restrict ticket market pricing practices.