scalping

Ticketmaster owner Live Nation’s push for legislative ticketing reform earlier this year has actually slowed down progress on those issues, sources tell Billboard, stalling a long-in-the-works bill that addresses nearly identical concerns about the ticketing business.

Last year, even before Taylor Swift’s Eras Tour presale fiasco inspired a flurry of ticketing reform bills, the National Independent Venue Association (NIVA) had been working on a wide-reaching piece of legislation in cooperation with Sens. Amy Klobuchar (D-Minn.) and John Cornyn (R-Texas) to “combat predatory and deceptive ticketing practices,” according to sources close to the issue. The bill included bans on deceptive practices and speculative listings, enforcement of existing anti-bot laws and new tools for countering ticketing fraud. Its most substantive change took aim at the secondary ticketing industry, granting artists and tour promoters sweeping power to reduce ticket scalping by allowing artists to set legally binding rules on how and where their tickets are resold, according to a November 2022 memo reviewed by Billboard. Besides NIVA, Universal Music Group, Wasserman Music, Dice and See Tickets were all among the broad coalition of music companies supporting the effort under the coalition name Fix the Tix.

But, for months, the bill has languished — even as attention around ticketing has grown considerably following a Senate Judiciary Committee hearing in January on competition within the ticketing industry. That’s because of increased lobbying by pro-scalper groups and a decision in February, by Ticketmaster owner Live Nation, to unveil the FAIR Ticketing Act, a five-point proposal with a list of legislative fixes — and the recommendations were very similar to the fixes NIVA had been quietly lobbying for.

With NIVA representing thousands of independent venues and Live Nation representing its huge corporate portfolio, the two entities often have opposing agendas, and some NIVA members theorized that Live Nation was attempting to sabotage their bill. Worried that supporting a similar proposal would look like politicians were rewarding Ticketmaster at a time when outrage at the company was growing, momentum around the NIVA bill waned. Klobuchar’s office, which had planned to announce a bi-partisan bill with Cornyn in the spring, delayed its announcement amid new concerns that the bill might strengthen Ticketmaster, sources close to both Live Nation and NIVA tell Billboard. They add that the FAIR Ticketing Act was neither a clone of the proposed NIVA bill nor a poison pill.

“Live Nation and Ticketmaster have been the target of the Senate since the two companies merged in 2010,” says one NIVA member speaking on the condition of anonymity. “There’s an appetite in D.C. to punish Ticketmaster, but the reality is that there’s no way to pass a law that would both punish Ticketmaster and bring about the types of reforms needed to clean up the ticketing business.”

Case in point: On April 28, Klobuchar’s office introduced legislation with Senator Richard Blumenthal (D-Conn.) that would have banned ticketing companies like Ticketmaster from signing venue clients to long-term exclusive contracts. The proposal has faced opposition from some members of NIVA, who argued it would hurt small venues that relied on the payments from those contracts, and that fans would likely have to make up for the loss through higher ticket prices. A representative for Live Nation previously told Billboard the proposal wouldn’t “have a material impact on our business as we historically add clients in competitive marketplaces.”

As for similarities between the NIVA-backed bill and Live Nation’s proposal, “It’s not surprising that the two groups that spent the last six months thinking about legislative fixes [to] the same issue came up with similar solutions,” said one source close to Live Nation, noting that much of the friction between NIVA and Ticketmaster has subsided.

Ticketmaster officials appear to have gotten the message and have toned down the rhetoric around their political efforts. Many of the campaign efforts have been picked up by NIVA, which successfully lobbied for $15 billion in federal aid for venues negatively impacted by the coronavirus pandemic in 2021. Now, sources say, the Fix the Tix bill is expected to be proposed in the next couple of weeks.  

Leading the charge at NIVA is the organization’s executive director, Stephen Parker. A longtime D.C. insider who worked with Sen. Tim Kaine when he was the governor of Virginia, Parker spent a decade at the bipartisan National Governors Association and has served on the board of the Country Music Association.

Parker confirmed to Billboard that neither Live Nation nor Ticketmaster has signed on as official supporters of the Fix the Tix coalition, while he and others are being extra cautious not to make their legislative package a referendum on Ticketmaster. Still, the Live Nation-owned company will play an outsized role in the Fix the Tix plan, as opponents are getting ready to paint the proposal as a major power shift to Ticketmaster and away from scalpers.

The Fix the Tix proposal would “make it illegal for resellers, professional ticket brokers, and ticket platforms to violate the artists’ and venues’ ticket terms and conditions, including restrictions that prohibit price gouging of fans through the resale of tickets above face value,” according to an early draft obtained by Billboard. That means artists, venues, or promoters could place ceilings on how much tickets are allowed to be marked up or restrict ticket resale until after all primary tickets have been sold. Since Ticketmaster and AEG are the only two companies on the market with technology that can track tickets after they’re sold to see if they are being resold and for how much, however, critics say this sort of law would create an even greater dependence on their services.

That’s far more power than Ticketmaster should have, says John Breyault, vp of public policy at the National Consumers League and a founding board member of the Fan Freedom Project, an advocacy group fighting restrictions on resale that receives funding from StubHub and Vivid Seats. “Ticketmaster does not want to eliminate resale; they want to control resale,” Breyault says. The current proposals by Ticketmaster and NIVA could bankrupt major secondary resale sites, especially if most tours decided to make their tickets non-transferable. Once Live Nation “got rid of its competitors,” Breyault says the company could convince the artist it works with to lighten up on ticket transferability and effectively “own the resale market.”

To a degree, Fix the Tix is a response to the dozens of pieces of pro-scalping legislation and lobbying that have been proposed at the state and federal levels over the past six months. This Fix the Tix bill would seek to overrule any state-level legislation that exists; there are currently over a dozen states with laws that outlaw restrictions on ticket transferability, meaning anyone can resell tickets at any price they want.Others, like Rep. Bill Pascrell’s (D-NJ) BOSS and SWIFT Act — which Breyault supports and the Fix the Tix coalition opposes — would permanently legalize scalping by making it illegal for ticketing companies to restrict ticket transferability.

Last year, the American Economic Liberties Project, which is funded by Pierre Omidyar — former chairman of eBay and owner of Ticketmaster rival StubHub — announced the “Break Up Ticketmaster,” campaign, aimed at pressuring the DOJ “to investigate and unwind the 2010 Live Nation-Ticketmaster merger,” according to the group’s website.

Opponents of scalping say the BOSS Act would make it impossible for artists to keep their tickets off secondary sites and would allow all scalping sites to sell any tickets they wanted without restriction. Proponents, however, believe that outcome is better for fans than allowing Live Nation and the artists it works with to make these decisions.

While the scalpers and the concert promoters are far apart on most issues, the rival bills do share consensus on a number of practices in ticketing that have long drawn the ire of fans. Those include speculative ticket listing, drip pricing and misleading marketing campaigns — all of which would be banned by both NIVA’s proposal and the BOSS and Swift Act.

Editor’s note: Billboard has updated this story to more accurately describe the work performed by the American Economic Liberties Project.