The NHL’s Los Angeles Kings won two Stanley Cups in recent history and are leading the fight against scalping companies that drive up prices for their own profit and drive away faithful fans from attending games.
According to the Wall Street Journal, the LA Kings communicated its new resale policy with ticket brokers.
Specifically, ticket brokers who want to buy season tickets to resale to the public must now pay a higher price for the seats in a new limited number. The brokers can only resell the tickets electronically through AXS, a ticket exchange platform that belongs to the team’s owner Anschutz Entertainment Group.
The Ups And Downs Of Scalpers
The Wall Street Journal added that several other sports teams face legal challenges from ticket brokers who argue that any effort to restrict resales is anti-competitive and artificially increases ticket prices. For example, a ticket broker sued Madison Square Garden Co (NYSE: MSG) last month over a policy that limits the selling of eight season tickets to a returning customer and no more than four per new customer.
The ticket broker, S4K, argued that by doing so, the owner of the famed Madison Square Garden venue is propping up the value of their own tickets rather than letting the market determine a fair value.
StubHub, one of the most notable ticket re-sellers, is actually looking to partner with professional sports teams to find ways of working together. The company was named as the official ticketing partner of the NBA’s Philadelphia 76ers for both primary and resale tickets.
On the other hand, ticket re-sellers could help a professional sports team mitigate their risk, especially in smaller market cities or at times when the team is performing poorly.