StubHub

StubHub Benefits

Prior to the advent of StubHub, the secondary ticket market was dominated by ticket brokers and ticket scalpers in the parking lots outside of venues. It was difficult for customers to safely buy legitimate tickets without paying exorbitant prices or sell unused tickets. For years, economists noted the inefficiencies in the secondary ticket market. Stub-Hub provides a service that adds value across the board. A well-functioning and organized secondary ticket market makes the purchase of tickets, from single-event tickets to multi-event and even season tickets, more attractive. The existence of the market lowers the risk of the ticket holder should he or she decide not to go, or is unable to attend an event. If the demand for tickets drives up the price, purchasers of multiple ticket or season ticket packages have the option to sell tickets at a profit and subsidize the tickets they use. In either case, having the option adds value to the ticket or ticket package. The benefit for buyers is safe, convenient, and reliable access to tickets for any event with a wide array of seating and price options.

Teams also benefit from the existence of Stub-Hub and its competitors in the secondary ticket market. The convenient and reliable option to sell unused tickets adds value and thus makes it easier to sell tickets and ticket packages. Additionally, the secondary market makes it less likely that tickets go unused and seats go empty, increasing ancillary game-day revenue from parking, concessions, and merchandise sales.

Sport organizations and teams partner with StubHub, which allows them to indirectly share in the revenue generated by the company's secondary ticket market activities through sponsorship fees paid by StubHub. In turn, StubHub benefits from the exposure and credibility of the official affiliation. StubHub partners in 2010 include Major League Baseball (MLB), the Big East Conference, and several National Football League (NFL), National Basketball Association (NBA), National Hockey League (NHL), and National Collegiate Athletic Association (NCAA) teams. With the MLB partnership, ticket commissions are split three ways between StubHub, the team, and MLB advanced media.

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