Several months ago one of our articles was about Flash Seats.
Flash Seats had announced a partnership with the Cleveland Cavaliers to handle the secondary ticket market for Cavalier season ticket holders. At the time, we were not impressed with the offering. There was a lot of marketing spin coupled with higher fees and less flexibility.
Flash Seats is owned by a venture capital firm that has the Cavs team owner, Dan Gilbert, as a major investor. He who has the gold rules. Flash Seats has no other teams signed up.
There is now a lawsuit between Flash Seats and TicketMaster. The Cavaliers had a contract in place for TicketMaster to serve as the teams primary and secondary ticketing company. The Cavaliers realizing the potential profits form the secondary ticket market, are trying to get more of those profits. In the lawsuit the Cavaliers state that TicketMaster is using anti-competitive tactics and TicketMaster is stating the Cavaliers are breaching their contract after taking payment from TicketMaster.
Who is right and who is wrong, we offer no commentary on. Here is what we find fascinating about the whole affair. Any company considering going to litigation has to consider the alternatives. Litigation is very expensive. I am sure there are plenty of $500 an hour attorneys involved in this one. Litigation is never taken lightly and only entered into when there is something to gain.
Each views the secondary ticket market as lucrative enough to litigate over. We agree with how lucrative it can be and continue to search for our piece of that market.
To learn how to make money being a ticket broker, visit www.MyTicketBiz.com.
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