Embattled ticket outlet ScoreBig has broken nearly a week of public silence in its ongoing financial crisis, telling brokers it does business with it is "deeply saddened by recent events" and is "sensitive to the impact on your business." ScoreBig confirmed comments by the National Association of Ticket Brokers last weekend that the company is "actively exploring a number of alternatives with outside parties under the direction of our senior secured creditor including a wind down or sale of the business.” ScoreBig has engaged California-based restructuring firm Sherwood Partners to solicit bids for company assets, with bids due by the end of Friday. The letter to brokers does not outline any specific plans or timetable from ScoreBig to make sellers whole on outstanding debts. Due to ScoreBig's fiscal woes, numerous brokers that sold inventory through the site have not been paid in weeks or months, leading to the cancellation of some tickets sold on ScoreBig, in turn creating uncertainty throughout the entire ticketing industry. ScoreBig in its letter to brokers said that "in an effort to relieve some of this pressure going forward, and prepare venues and their staff with necessary information to help consumers, we have provided venues with a full list of ScoreBig orders for their upcoming events."
CAN OF WORMS OPENING? This move is in contrast to ScoreBig’s opaque ticket-selling model, in which the origin of the ticket seller is masked, and the data disclosure quickly drew rebuke from ticket brokers. “This has a real chance to create some perverse effects,” said Maryland-based ASC Ticket VP & General Counsel Lee Shenker. The company is owed about $120,000 from ScoreBig. Shenker: "ScoreBig has never really been a fan-to-fan marketplace, so it's been safe to assume the sellers of that inventory have primarily been brokers or teams themselves. But some teams out there are not as friendly to resale of their inventory, particularly outside of their preferred channels. So to broadcast specific orders like this, it opens to the door some potential problems, and adds insult to injury." Eventellect co-Founder Patrick Ryan on Friday also tweeted, "ScoreBig is creating a mess by sending venues a list of potential canceled tickets. They should have worked directly with the seller."
