The existence of a secondary event tickets market is
sometimes frowned upon by diehard sport fans. Why is it difficult to do away
with? Does it have its own value in today’s market place? The obvious answer to
that is it exists despite the murkiness surrounding it for so many years now.
Take for example a club cricket league. The board which controls the game is the producer of the event. They are the primary source of the tickets for sale. They decide on the face value of the tickets, the number of tickets for sale to the public as well as how many tickets each individual is allowed to buy. All these outlined issues are dependent on the popularity and rating of the team playing that match.
The position of a broker is next. When the tickets are on sale, not all the people who queue up are fans of the game or neither are they going to be sure of making it for the said same with any certainty. They buy the tickets with one purpose in mind – to resell for a profit. Their contention is that the face value of a ticket is much lower than its actual worth.
So the board which controls the game could sell the tickets for a higher value and make a profit themselves. It does not do so as higher face value may discourage higher sales. The board would want the stadium to be sold out before the match in order to pay for renting out the venue, advertising, etc. which are the minimum costs of a producer leaving a little profit margin. So the demand is greater than supply of tickets.
This creates an opportunity or a broker to make a profit by buying at face value and selling at a profit closer to the date of the match. But there is an inherent risk in this business. There is no guarantee that the ticket can always be sold at a higher value. Some cases show that market value of some league games suddenly drop due to poor performances and a broker ends up with a loss. Nevertheless enthusiastic fans can always take recourse to a broker if he needs tickets urgently.
Take for example a club cricket league. The board which controls the game is the producer of the event. They are the primary source of the tickets for sale. They decide on the face value of the tickets, the number of tickets for sale to the public as well as how many tickets each individual is allowed to buy. All these outlined issues are dependent on the popularity and rating of the team playing that match.
The position of a broker is next. When the tickets are on sale, not all the people who queue up are fans of the game or neither are they going to be sure of making it for the said same with any certainty. They buy the tickets with one purpose in mind – to resell for a profit. Their contention is that the face value of a ticket is much lower than its actual worth.
So the board which controls the game could sell the tickets for a higher value and make a profit themselves. It does not do so as higher face value may discourage higher sales. The board would want the stadium to be sold out before the match in order to pay for renting out the venue, advertising, etc. which are the minimum costs of a producer leaving a little profit margin. So the demand is greater than supply of tickets.
This creates an opportunity or a broker to make a profit by buying at face value and selling at a profit closer to the date of the match. But there is an inherent risk in this business. There is no guarantee that the ticket can always be sold at a higher value. Some cases show that market value of some league games suddenly drop due to poor performances and a broker ends up with a loss. Nevertheless enthusiastic fans can always take recourse to a broker if he needs tickets urgently.
