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StubHub Sues Warriors, Ticketmaster Over Restrictions On Secondary-Market Sales

StubHub yesterday filed a federal antitrust suit against Ticketmaster and the Warriors, alleging the pair illegally conspired to force season-ticket holders of the NBA team to only use a Ticketmaster-powered market for ticket resale and restrict consumer choice. The lawsuit, filed in U.S. District Court for the Northern District of California, claims listings of Warriors tickets on StubHub have fallen 80% in the last year, and that the market restrictions unchecked will be replicated elsewhere. The complaint alleges the Warriors threaten to cancel season tickets and deny purchase opportunities for playoff tickets to fans using other secondary ticket exchanges. "Ticketmaster has engaged in a number of other unfair practices to deprive consumers of access to secondary ticket exchanges other than its own," the complaint reads in part. "There are no legitimate or offsetting pro-competitive benefits that justify Defendants' conduct in harming competition." StubHub in the suit seeks to permanently enjoin Ticketmaster and the Warriors from implementing such restrictions, as well as unspecified monetary damages and legal fees. StubHub over its 15 years of existence has locked horns legally with Ticketmaster and Ticketmaster partners several times (Eric Fisher, Staff Writer). ESPN.com's Darren Rovell wrote this “could prove to be a landmark case in the sports ticket marketplace.” The Warriors and Ticketmaster “have had a relationship since 2012 whereby they share fees from the team’s resale market.” Sources said that the Warriors “got more restrictive and adamant about selling outside of their platform this season” (ESPN.com, 3/29).

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