Selling tickets for more than face value is a common practice, especially for popular concerts, sports events, and other high-demand events. However, there are some important legal and ethical considerations when reselling tickets for a profit.
Is it legal to sell tickets above face value?
The legality of reselling tickets above face value depends on local and state laws. Some states prohibit resale above face value or impose limits on markups. Other states have no restrictions on ticket resales.
For example, in New York it is illegal to resell tickets to entertainment events, sports events, or places of public amusement for more than 45% above face value. There are exceptions if the resale is authorized by the event organizer or venue. New Jersey also caps markups at 20% above face value.
Many other states like California, Florida, and Texas have no laws restricting how much tickets can be resold for. So in those states, resellers can sell for whatever price the market will bear.
Federal ticket resale laws
On the federal level, the BOSS Act of 2016 authorizes the resale of tickets but requires disclosure about the original face value. Resellers must inform buyers if a ticket’s purchase price is higher than face value.
The FTC also prohibits deceptive practices like bait-and-switch pricing. Resellers cannot advertise tickets at one price but then charge a higher price later.
Venue and organizer restrictions
Many venues, sports teams, and event organizers have terms and conditions that restrict ticket resales above face value. They may claim that any tickets resold above face value will be void and invalid for admission.
However, ticket resale restrictions have been challenged in court and typically do not hold up if they outright prohibit any resale. Venues can limit the initial sale to restrict resales. But once a ticket has been initially sold, the buyer then has ownership rights.
Ethical considerations
While reselling tickets above face value may be legal in many cases, there are ethical arguments against pricing tickets out of reach for the average fan. Key considerations include:
- Price gouging – Excessive markups may exploit demand and unfairly profit from fans.
- Accessibility – High prices prohibit lower-income fans from attending.
- Fairness – Tickets may fall into hands of scalpers over genuine fans.
On the other hand, ticket resellers provide a service by allowing easy transfer of tickets between buyers. Resellers also take on risk if they are unable to sell excess inventory. So reasonable profits could be justified.
In the end, perceptions of ethics depend on prevailing social norms and personal values.
Major ticket resale marketplaces
Some of the most popular online ticket marketplaces include:
- StubHub
- Vivid Seats
- Ticketmaster
- SeatGeek
- TickPick
These sites provide a platform for buyers and sellers to exchange tickets. They charge fees and commissions on transactions. Many report average resale prices substantially above face value on high-demand events.
StubHub
StubHub is owned by Viagogo and is one of the largest online ticket marketplaces. Sellers list ticket inventory and set their own prices. Buyers can search listings and purchase tickets. StubHub charges around 15% fees to sellers and 10% to buyers.
An analysis found StubHub sellers ask on average 49% above face value. But prices can run well over 100% above face value for hot events. Buyers pay, on average, 31% above face value after factoring in fees.
Vivid Seats
Vivid Seats is another large marketplace owned by Horizon Acquisition Corp. Sellers list tickets and name their price. Buyers browse and purchase event listings. Vivid Seats charges around 20% seller fees and 10-20% buyer fees.
According to one analysis, Vivid Seats resell prices average 62% above face value. Some events like NBA finals and NFL playoffs see average markups of over 200%. After fees, buyers pay about 43% above face value.
Ticketmaster
Ticketmaster facilitates primary ticket sales and also has a resale marketplace. Sellers can list for resale tickets purchased through Ticketmaster. The site charges a 15% seller fee and 10% buyer fee.
While Ticketmaster does not disclose average resale prices, analysis indicates frequent markups 100-400% above face value. Buyers may pay 70% or more above face after fees.
SeatGeek
SeatGeek is another large ticket marketplace where sellers list tickets at chosen prices. SeatGeek takes around 10% from sellers and buyers. Analysis shows sellers ask, on average, 78% above face value across NFL, NBA, NHL, and MLB events.
TickPick
TickPick is a ticket marketplace that advertises no buyer fees. Sellers list tickets at chosen prices and pay around 10% fees. NFL and NBA tickets on TickPick resell for around 30-40% above face value, on average.
Marketplace | Average Markup Above Face Value |
---|---|
StubHub | 49% (sellers), 31% (buyers) |
Vivid Seats | 62% (sellers), 43% (buyers) |
Ticketmaster | 100-400% (sellers), 70%+ (buyers) |
SeatGeek | 78% (sellers) |
TickPick | 30-40% (sellers) |
Strategies for buying tickets at or below face value
While many tickets sell above face value in secondary markets, fans do have options for finding deals at or below face value. Strategies include:
Buy directly from the venue box office
Purchasing tickets directly from the event venue avoids resale markups. However, venue box office sales are usually limited to early on-sales. Popular shows or games will sell out direct tickets quickly.
Buy early in presales
Many events offer presale opportunities through fan clubs, credit cards, or other groups. Presales often have dedicated allotments of tickets available before the general public on-sale. Buying presale tickets right when they become available gives the best chance at face value pricing.
Use season ticket holder exchanges
For sporting events, season ticket holders often have exchanges to resell tickets to individual games. Since they already paid for the full season, they typically just try to recoup the face value. Exchanges include ones run by team franchises or sites like NFL Ticket Exchange.
Check seller direct sites
Some artists or teams sell tickets directly through their own resale exchanges. These are often face value, especially closer to event dates when sellers want to unload extra inventory.
Wait until the last minute
As events approach, sellers on secondary markets get more desperate to unload inventory. Monitoring sites leading up to events can uncover sellers dropping prices, sometimes to below face value just to cut losses.
Bid on auctions
Bidding on auction-style listings gives a chance to purchase tickets below market resale prices. Sites like eBay provide auction formats. But success depends on luck finding underpriced auctions.
Final considerations on ticket resales above face value
In summary, reselling event tickets for higher prices is common but controversial practice. Laws and ethical norms vary widely on what limits should be imposed, if any. Market dynamics around supply and demand pressures determine resale market prices, which often exceed face values by large margins. For popular high-profile events, average resale prices on major secondary markets range from 30% to over 100% above face value. Still, fans have alternatives like presales, exchanges, auctions, or last-minute deals to try acquiring tickets at or below face values if they are strategic and diligent in their efforts.