SBJ/November 10 - 16, 2003/This Weeks Issue
Clippers renew deal with StubHub
Published November 10, 2003
The Los Angeles Clippers have renewed their exclusive, multiyear deal with StubHub.com, the online secondary ticketing company.
The deal ensures that the Clippers, who in 2001 became the first NBA team to offer a team-sanctioned ticket resale system, will continue to do so through at least the 2005-06 NBA season, said Eric Baker, president of StubHub.
"The renewal is a tremendous validation not only of secondary ticketing, but of the level of results the StubHub system can provide," Baker said.
StubHub and the Clippers will share revenue from the 15 percent fee charged to the seller and the 10 percent fee charged to the buyer, Baker said.
The Clippers, whose primary ticketing partner is Ticketmaster, last season sold nearly 4,000 tickets on the secondary market through their StubHub partnership, according to Carl Lahr, the Clippers' senior vice president of marketing and sales.
The team was fourth among all NBA teams last season in tickets sold on the secondary market, according to StubHub's internal research, which also counted tickets not sold through StubHub.
StubHub's system allows ticket holders to post tickets for sale in fixed-price or auction formats, and ships tickets to buyers via Federal Express. StubHub has seven professional sports clients, but it sells tickets for virtually every team through partnerships with several online newspapers.
StubHub, previously called LiquidSeats, in 2002 raised just over $2 million in private equity financing, according to a report by Avila Partners, which showed that online ticketing systems accounted for more than $24.5 million of the $90 million in private equity financing doled out last year.