Skip navigation

Scalpers take Super Bowl business online


< Prev | 1 | 2

And it's not just big sporting events like the Super Bowl, the World Cup or the Masters adding to their bottom lines. While Domek made more on the Super Bowl last year than any other single event, tickets to the musical "Wicked'' collectively generated more revenue than anything else.

Mike Janes, a senior vice president at online ticket broker StubHub.com, said people will spend the money because such tickets are seen as admittance to a once-in-a-lifetime experience. StubHub was recently purchased by eBay Inc. for $310 million.

"People spend a lot of money, thousands of dollars quite often, for experiences like going to Hawaii, going on a cruise, going to Las Vegas, going to Disney World,'' Janes said. "Fans, especially passionate fans, think nothing of spending that amount of money on an event like this.''

Story continues below ↓
advertisement | your ad here

Gene Kudron, a 49-year-old who lives in Winfield, Ill., and owns a small manufacturing company, is among those who decided it's worth the cost. He bought four Super Bowl packages on RazorGator.com for a total of $24,800.

"I had it up on the screen and I didn't hit that button for probably 10 minutes,'' he said. "I tried to justify it 15 different ways but it's an opportunity I probably won't have again.''

Though much of the initial allotment of Super Bowl tickets is going to corporate buyers, many of the resold ones are, too. Companies buy them up to reward clients and employees and brokers say they account for most of the business up until the two weeks before the Super bowl.

"They're the only ones who will allocate funds no matter what team is involved,'' said Michael Lipman, president of Miami-based TicketsOfAmerica.com.

Lipman will sell about 20 to 40 game tickets to Richard Bennetti, chief executive of Ocean Drive Limousine in Miami, who gives them to clients. Bennetti says it keeps customers interested in his business by giving them an unmatchable experience.

"It's like giving a small baby its first taste of ice cream,'' he said.

The majority of states have no price cap on ticket resales by brokers; Florida eased its rules last year and some other remaining ones appear poised to follow. Still, companies can often get around any restrictions by offering travel packages, with tickets, airfare, a hotel room and other perks bundled together. Scalpers who work right outside events typically face tougher constraints, but overall the legal environment has become friendlier.

"The clear trend,'' said Gary Adler, a lobbyist and attorney for the National Association of Ticket Brokers, "is toward opening up markets.''

Krueger said his survey showed most fans support a legal ticket resale market but don't want to see the NFL charge more. Many argue the league could improve the Super Bowl situation by giving more tickets directly to fans, but Brian McCarthy, an NFL spokesman, said there will never be enough.

"If we could build a stadium for 400,000 fans we still wouldn't have enough tickets,'' he said.

As for Block, he was still struggling with his decision as game day neared. He was worried more about the cost than upsetting his girlfriend.

"She puts up with a lot,'' he said.

© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


< Prev | 1 | 2

Sponsored links

Scottrade: Trade Stocks
Open an Account Online Today! $7 Trades & Powerful Trading Tools.
www.scottrade.com

Resource guide