MLB Re-Ups With StubHub But Yankees, Others Opt Out
Before the 2007 season, Major League Baseball Advanced Media partnered with StubHub as the official secondary ticket marketplace for Major League Baseball. All 30 MLB teams participated. Anyone could list MLB game tickets for sale on StubHub, at any price. StubHub charged buyers a handling fee and a delivery fee, often totaling more than $10, regardless of the selling price. The “delivery fee” was the key to the deal, as it allowed buyers to print the tickets at home. Gone were the days of sellers tossing tickets out a window to buyers at midnight. Sellers also paid a fee to StubHub, charged as a percentage of the sale price. StubHub shared about half its fees with MLBAM. In 2011, that amounted to more than $60 million. MBLAM then funneled a portion of those funds to the 30 teams.
Fans rejoiced. During the 2011 season, more than 8 million MLB tickets sold on StubHub, up from 6 million in 2010.
But many teams weren’t as thrilled. The Yankees, in particular, were a vocal critic of StubHub’s pricing policies. With no price floor, Yankees tickets were often available on StubHub for less than $5, a price significantly below the lowest ticket price available at the box office or on Yankees.com. Critics countered that Yankees ticket prices were too high, creating a fertile market for very cheap tickets on the secondary market. But even teams with lower ticket prices lost sales to StubHub.