Concert promoter warns of speculative ticket trend, calling it 'blatantly fraudulent'

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Consumers are being told to be wary of speculative tickets when it comes to highly in-demand concerts, something promoters claim they’ve been “on the warpath about.

“It’s an issue that’s particularly acute when it comes to these big shows — the Billie Eilish, the Taylor (Swift shows) and so forth,” said Dan Wall, executive vice-president of corporate and regulatory affairs for Live Nation Entertainment, during an educational briefing on Monday afternoon with invited media.

“It is this blatantly fraudulent practice of listing tickets that someone doesn’t own. What they’re trying to do is scam you because if you pay a couple thousand for that ticket, they’re going to make a bet between then and the show, which might be six months out, they’ll be able to find you something else that you’ll accept for less than that money. But if not, they’re going to refund you your money, maybe. But you’re not going to get into the show.”

Wall also spoke about the issue of scalpers buying tickets and reselling them, often doubling the face-value price of tickets with digital resale sites like StubHub making a 37% commission.

“It’s really distorting the industry economics in a pretty fundamental way,” he said.

“What happened in 2000 when StubHub came along and then online retail sites afterwards, there became an enormous business — we estimate in North America it’s $5 billion to $10 billion a year — of ticket scalping. Of buying up tickets in a variety of ways and marking them up and putting them on resale.”

Wall also said StubHub, SeatGeek and Vivid Seats have tickets that are 70%, 80% and almost 100%, respectively, provided by ticket brokers and not fans.

“The reality is their business is overwhelmingly serving professional resellers,” he said “And as a result of that, it shouldn’t surprise anyone that the business practices that follow from that are those that are going to be geared to the scalper.”

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On the more positive side, the briefing showed 72% of tickets sold in Canada by primary ticketing platforms like Ticketmaster are under $100 with an average entry level price of $40 and just 0.9% of tickets over $500.

In that world, the artist is making 90% of the ticket price’s face value, the promoter 10%, while the venue collects the majority of ticketing fees, rent, parking, food and beverage. The primary ticket platform, in this case Ticketmaster, makes 5% on average.

Among the 2024 industry highlights mentioned by Trevor Allin, executive vice-president of business and commercial operations at Ticketmaster, was the new outdoors Rogers Stadium opening in 2025 in Toronto’s Downview Park, just in time for multiple shows next summer by both Coldplay and a reunited Oasis.

“Those are some of the artists that might not have had the ability to play in Canada if there wasn’t these music-forward venues being built and giving them the opportunity and space to play,” said Allin.

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He also mentioned Swift’s unprecedented six Rogers Centre shows in Toronto starting Nov. 14 with promoter Messina Touring, owned by competitor AEG Live, choosing to use Ticketmaster to distribute tickets. Her Eras trek ends in Vancouver at B.C. Place from Dec. 6 to Dec. 8.

“Of course, Taylor coming in a couple of weeks — excited for that to happen — and finish her tour in Canada,” said Allin.

Wall called her “superhuman.

“She is playing a number of shows in stadiums unlike few, if any, solo acts have tried to take on,” he said.