APRIL 6, 2009 Schumer Plans Legislation to Curb Ticket Resales Article
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By ETHAN SMITH
In the latest move in his battle with Ticketmaster Entertainment Inc., New York Sen. Charles Schumer unveiled plans for legislation that would ban the resale of concert and sports tickets until two days after they first go on sale to the public.
The waiting-period legislation is partly a response to complaints from Bruce Springsteen fans who in February tried to buy concert tickets on Ticketmaster's main Web site but were instead redirected to TicketsNow.com, a site owned by Ticketmaster where brokers resell tickets, often for many times face value. Fans were particularly outraged that Ticketmaster's computers steered them to the higher-priced aftermarket even before the concerts were fully sold out.
Charles Schumer
The bill, which Mr. Schumer plans to introduce Monday, wouldn't outlaw the resale of tickets entirely, but would prohibit situations in which tickets are listed for resale at jacked-up prices on sites like eBay Inc.'s StubHub.com during -- or even before -- the initial sale. After the Springsteen debacle, TicketsNow banned such "prelistings" on its site.
"Buying concert tickets has become like taking a trip back to the Wild West -- anything goes," Mr. Schumer said in a statement Sunday. He accused resellers of "hoarding" tickets and quickly driving up prices. "Any attempt to keep prices down by the sellers and artists is made impossible." He called his proposal an attempt to create "a fair system" to give fans a chance to obtain good seats for their face value.
The action comes against the backdrop of Ticketmaster's proposed acquisition by Live Nation Inc., the world's largest concert promoter. That deal would create a live-music powerhouse and is subject to regulatory review by the Justice Department.
In a sign of possible d[eacute]tente between Mr. Schumer and the ticketing giant, Ticketmaster Chief Executive Irving Azoff endorsed the legislation in a statement Sunday, calling it a "thoughtful proposal."
The announcement represented a marked shift in the tone of the dialogue between Mr. Schumer and Ticketmaster executives, who had traded increasingly pointed barbs in the past two months.
Mr. Schumer sharply criticized Ticketmaster in the wake of the Springsteen episode, and questioned Mr. Azoff during Senate subcommittee hearings on the merger in February.
Last month, Ticketmaster Chairman Barry Diller fired back during a conference call with analysts, accusing Mr. Schumer of engaging in "always-to-be-expected shameless grandstanding."
Write to Ethan Smith at ethan.smith@wsj.com
