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StubHub is a service which acts as an online marketplace for buyers and sellers of tickets for sports, concerts, theater and other live entertainment events at fair market value, even for events that happen to be sold out. The company was founded in 2000 by Eric Baker and Jeff Fluhr, former Stanford Business School students and investment bankers and is located in San Francisco, CA.[1] Founder Eric Baker left StubHub in 2004 following a falling out with the company, and has started a new company viagogo.[2] StubHub was acquired by eBay in January 2007.[3]

Founder Eric Baker said, "I'm probably the one person from business school who decided to take his MBA and become a ticket scalper."[4] Sellers post available tickets at any price they choose. Unlike other online ticket resellers, such as Craigslist (free) and eBay (up front price per listing), StubHub takes a 25% commission after the sale occurs (10% from the buyer, 15% from the seller). Sellers range from season ticket holders who want to unload tickets that would otherwise go unused to professional ticket brokers.



Using the StubHub website, a buyer may select from available tickets to an event. Stubhub charges a service fee of 10% of the purchase price of the tickets. A shipping and handling charge is then imposed and tickets are either shipped via FedEx Express, email delivered, or picked up the day of the event. In total, StubHub earns 25% of the purchase price of every ticket sold: buyers pay 10% more than the listed price and sellers receive 15% less than their listed price.[5]

Sports partnerships

StubHub has formal relationships with several professional teams and college sports programs.


New York Yankees

In 2006, more than 100 New York Yankees season-ticket holders suspected of reselling their regular-season seats on StubHub received letters denying them the right to buy playoff tickets and barring them from buying season tickets for the 2007 season.[7] [8]

New England Patriots

The New England Patriots sued StubHub to bar it from reselling the team's tickets. The team reportedly showed up at games with phony or voided tickets bought over StubHub. While some were counterfeits, others were voided tickets sold by fans after they had their season-ticket privileges revoked.[9][10][11] That problem, the Patriots argue, is worsened by a guarantee from StubHub that if tickets turn out to be fraudulent, the website will find alternate accommodations for the buyer. "Our experience is that as the listings on StubHub have increased, so also have the number of people who show up at the stadium with invalid tickets."[11]

On July 6, 2007, a Suffolk Superior Court judge allowed StubHub to proceed with its lawsuit against the New England Patriots.[12] Stubhub is accusing the Patriots of attempted monopolization, conspiracy to restrain trade and unfair trade practices.

On October 19, 2007, a court upheld an order forcing StubHub to turn over a list of all New England Patriots season ticket holders since 2002 who had used the site. The Patriots stated that they may strip the season ticket holders of their seats.[13]

On January 26, 2009, the Massachusetts Superior Court rejected StubHub's argument that it was not liable for its sellers' behavior per 47 USC 230. NPS LLC v. StubHub, Inc., 2009 WL 995483 (Mass. Super. Ct. Jan. 26, 2009), [1].

Anti-scalping legislation

In 38 states, reselling event tickets is legal, so long as the sale does not take place at the event site. The other 12 states have varying degrees of regulation, including registration requirements and maximum markups.[4] Stubhub, Ticketmaster, TicketNetwork, and others have begun to lobby state legislatures to repeal or modify the stricter anti-scalping laws. In Florida, Stubhub made over $6,500 in campaign donations to members of the state legislature in support of a 2006 bill to amend Florida's 61-year old anti-scalping laws. Many consumers, as well as lobbyists for the leisure and entertainment industries were opposed to the bill, and claimed it will drive up prices for consumers while hurting their share of the ticket market.[14][15] To put these complaints into perspective, customers report paying 300% of standard retail price for events through ticket resellers like StubHub.[16]


  1. "Frugality is this startup's ticket". Businessweek online. February 15, 2005. Retrieved 2006-06-08. 
  2. Charny, Ben (August 17, 2006). "Online ticket scalping comes to Europe". MarketWatch. Retrieved 2006-08-17. 
  3. eBay (January 10, 2007). "eBay To Acquire Online Tickets Marketplace StubHub". Press release. Retrieved 03-02-2007. 
  4. 4.0 4.1 Fried, Josh (November/December, 2004), "Admit Two: StubHub's founders want to take the worry out of getting close seats", Stanford Magazine (Stanford Alumni Association),, retrieved 2006-06-08 
  5. "Index Ventures Backs StubHub Clone". alarm:clock euro. August 18, 2006. Retrieved 2008-01-18. 
  6. "NCAA Basketball Tickets". Retrieved 2008-01-18. 
  7. Sanderson, Bill (September 23, 2006). "YANKEES SHUT OUT SEASON-TIX SCALPERS". Retrieved 2008-01-18. 
  8. Sandomir, Richard (September 24, 2006). "That Season Ticket on eBay? It Could Cost Seller the Seat". The New York Times. Retrieved 2008-01-18. 
  9. Van Voorhis, Scott (November 23, 2006) ([dead link]), Tickets to big trouble: Pats sue StubHub over Internet, Boston, Mass.: The Boston Herald, pp. 26, 
  10. Reed, Keith (November 23, 2006), Patriots Sue Ticket Reseller in Effort to Fight Scalping, Boston, Mass.: The Boston Globe, pp. A1,, retrieved 2008-01-18 
  11. 11.0 11.1 Mohl, Bruce (December 3, 2006), "Patriots play tough", The Boston Globe (Boston, Mass.): D1,, retrieved 2008-01-18 
  12. Mohl, Bruce (July 7, 2007), "Ticket-sales suit against Patriots gets green light", The Boston Globe,, retrieved 2008-01-18 
  13. Mohl, Bruce (October 19, 2007), "Patriots get StubHub users' names", The Boston Globe,, retrieved 2008-01-18 
  14. Talalay, Sarah; Piccoli, Sean (May 2, 2006), "Bill lifts restrictions on ticket resale prices", South Florida Sun-Sentinel (Fort Lauderdale, Florida), 
  15. Editorial (June 6, 2006), "The scalpers in Tallahassee", The Ledger (Lakeland, Florida),, retrieved 2006-06-08 
  16. Adams, Russell (September 27, 2006), "Baseball-Playoff Seats Get Harder to Score", Wall Street Journal (,, retrieved 2008-01-18 

See also

External links

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