Leadership / 04.01.20
Amid Stubhub Layoffs & Liquidity Crisis, Ticket Brokers Push for a Bailout
Billboard (03/26/20) Brooks, Dave
The National Association of Ticket Brokers (NATB) and other secondary-market ticket broker organizers have proposed a government bailout amid layoffs at Stubhub and falling liquidity during the coronavirus crisis. This is because brokers are being asked to refund customers for canceled events, but they cannot recoup their own money on the tickets they purchased directly from sports leagues and Ticketmaster. "I think some marketplaces are going to go under — it's similar to what happened with the financial crash of 2008 without the prospect of a bailout," says Qcue CEO Barry Kahn. He adds that the liquidity crisis could be worsened by how the National Basketball Association, the National Hockey League and others opt to treat their postponed seasons. "Once the first marketplace falls, it's hard to imagine how brokers and the rest of the marketplaces don't follow," Kahn notes. NATB Executive Director Gary Adler says a bailout should be justified, because "right now, the ticketing industry is essentially at a complete halt with no end in sight. Income for the people working in this sector and providing valuable services to consumers is essential and warranted." However, venue operators like Michael Marion with Little Rock, Arkansas's Simmons Bank Arena consider the secondary market an irritant, arguing that "it would probably be good for our business if they went out of business."
Read the full story from Billboard.
Tags: Secondary Ticketing , COVID-19 , Coronavirus