Author Topic: Cubs in hot water?  (Read 5862 times)

Jacksonian

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Cubs in hot water?
« on: February 14, 2012, 03:47:46 pm »
Goin' for a bus ride.

jester9450

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Re: Cubs in hot water?
« Reply #1 on: February 15, 2012, 03:11:03 pm »
Its the cubs what can you say

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Re: Cubs in hot water?
« Reply #2 on: February 15, 2012, 03:12:53 pm »
Its the cubs what can you say

Fuck them?

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Re: Cubs in hot water?
« Reply #3 on: February 15, 2012, 07:47:32 pm »
well played waldo..well played
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Gizzmonic

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Re: Cubs in hot water?
« Reply #4 on: February 16, 2012, 09:40:28 am »
Federal regulations violation?

Ah, they'll just get a change of venue to Chicago, and the judge will rule it's legal to violate federal regulations, just like they ruled it's legal for the Cubs to scalp their own tickets.
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HudsonHawk

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Re: Cubs in hot water?
« Reply #5 on: February 16, 2012, 09:57:19 am »
Ah, they'll just get a change of venue to Chicago, and the judge will rule it's legal to violate federal regulations, just like they ruled it's legal for the Cubs to scalp their own tickets.

It's legal to scalp tickets most places, including Houston. 
The rules of distinction were thrown out with the baseball cap.  It does not lend itself to protocol.  It is found today on youth in homes, classrooms, even in fine restaurants.  Regardless of its other consequences, this is a breach against civility.  A civilized man should avoid this mania.

Limey

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Re: Cubs in hot water?
« Reply #6 on: February 16, 2012, 10:29:50 am »
It's legal to scalp tickets most places, including Houston. 

I think the issue is that it's legal to scalp tickets, but not when you're the issuer of the tickets.  It may be caught up in the interstate commerce exemption 'n' shit.  There was a long thread about it in here when the story first came up.
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Limey

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Re: Cubs in hot water?
« Reply #7 on: February 16, 2012, 10:36:30 am »
Cubs ticket broker cleared of scalping

The Cubs (wholly owned subsidiary of the Tribune) sold tickets to Wrigley Field Premium Ticket Services (wholly owned subsidiary of the Tribune) who then scalped them.

Quote
The court found "no deception" in the fact that Premium charged more than the advertised price of the tickets.

Of course there's no deception.  The scam is as plain as day.

From ESPN's Page 2:

Quote
Proving that there's as much justice in the justice system as jazz in Utah, an appeals court ruled recently that the Chicago Cubs' ticket-scalping scheme did not violate state anti-scalping laws, despite clearly violating the state's anti-trust law.

The Illinois Ticket Scalping Act says that if you put on a sporting event (or a Cubs game), you can't sell those tickets for more than their face value. The Cubs set up a sham firm, Wrigley Field Premium Tickets, which was owned by the same people who owned the Cubs, run by a Cubs VP, and even had the Cubs do their accounting. The Cubs would then funnel them face-value tickets before they were available to anyone else, which the sham company would scalp. I've followed this story since 2002, when two Cubs fans took the whole rotten system to court, and I have no idea how this can be ruled legal.

I hate the fucking Jazz.
« Last Edit: February 16, 2012, 10:41:26 am by Limey »
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HudsonHawk

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Re: Cubs in hot water?
« Reply #8 on: February 16, 2012, 10:51:00 am »
I think the issue is that it's legal to scalp tickets, but not when you're the issuer of the tickets.  It may be caught up in the interstate commerce exemption 'n' shit.  There was a long thread about it in here when the story first came up.

Well, the original distributor of the tickets can sell them for whatever they want.  You can't scalp tickets to your own event.  I agree that it was deceitful, but I'm not surprised that it is not illegal.
The rules of distinction were thrown out with the baseball cap.  It does not lend itself to protocol.  It is found today on youth in homes, classrooms, even in fine restaurants.  Regardless of its other consequences, this is a breach against civility.  A civilized man should avoid this mania.

Limey

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Re: Cubs in hot water?
« Reply #9 on: February 16, 2012, 11:04:32 am »
Well, the original distributor of the tickets can sell them for whatever they want.  You can't scalp tickets to your own event.  I agree that it was deceitful, but I'm not surprised that it is not illegal.

They found (created) a loophole to avoid a law that was clearly written to try to stop them doing what they were doing.  The law is flawed and, if IL is serious about the issue, needs to be changed.  The Cubs are still scumbags, preying on their fans and gouging them for a shitty product.  CubFans are, well, Cubfans for putting up with it.
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HudsonHawk

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Re: Cubs in hot water?
« Reply #10 on: February 16, 2012, 11:17:57 am »
They found (created) a loophole to avoid a law that was clearly written to try to stop them doing what they were doing.  The law is flawed and, if IL is serious about the issue, needs to be changed.  The Cubs are still scumbags, preying on their fans and gouging them for a shitty product.  CubFans are, well, Cubfans for putting up with it.

It wasn't a loophole. Scalping is not illegal in Illinois.  You are allowed to resell tickets above face value.
The rules of distinction were thrown out with the baseball cap.  It does not lend itself to protocol.  It is found today on youth in homes, classrooms, even in fine restaurants.  Regardless of its other consequences, this is a breach against civility.  A civilized man should avoid this mania.

Bench

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Re: Cubs in hot water?
« Reply #11 on: February 16, 2012, 11:28:20 am »
It wasn't a loophole. Scalping is not illegal in Illinois.  You are allowed to resell tickets above face value.

From the Limey quoted article: "The Illinois Ticket Scalping Act says that if you put on a sporting event (or a Cubs game), you can't sell those tickets for more than their face value."

Assuming that's true, it's not "reselling" tickets which is why it would be against the law.
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Gizzmonic

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Re: Cubs in hot water?
« Reply #12 on: February 16, 2012, 11:30:06 am »
It wasn't a loophole. Scalping is not illegal in Illinois.  You are allowed to resell tickets above face value.

I guess it depends on what the definition of "resell" is.  It would take a lawyer to explain, and my simple mind can barely add fractions!
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Limey

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Re: Cubs in hot water?
« Reply #13 on: February 16, 2012, 11:46:43 am »
I guess it depends on what the definition of "resell" is.  It would take a lawyer to explain, and my simple mind can barely add fractions!

The Cubs are the direct seller and are bound by law to charge only the value printed on the ticket (if they want to charge more for the tickets, they can simply increase the price printed on it).  A reseller buys the tickets from the Cubs, and can then charge market value for them.

The Cubs do both which allows them to pocket 100% of the difference between face value and market value instead of sharing it with the visiting team.
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HudsonHawk

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Re: Cubs in hot water?
« Reply #14 on: February 16, 2012, 12:56:48 pm »
From the Limey quoted article: "The Illinois Ticket Scalping Act says that if you put on a sporting event (or a Cubs game), you can't sell those tickets for more than their face value."

Assuming that's true, it's not "reselling" tickets which is why it would be against the law.

http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=094-0020

Here is the actual law.  Look at this part of it and tell me how you interpret that.

"(b) This Act does not apply to the resale sale of tickets 
of admission to a sporting event, theater, musical performance, 
or place of public entertainment or amusement of any kind for a 
price in excess of the printed box office ticket price by a 
ticket broker who meets all of the following requirements: blah, blah, blah"
The rules of distinction were thrown out with the baseball cap.  It does not lend itself to protocol.  It is found today on youth in homes, classrooms, even in fine restaurants.  Regardless of its other consequences, this is a breach against civility.  A civilized man should avoid this mania.

MusicMan

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Re: Cubs in hot water?
« Reply #15 on: February 16, 2012, 01:09:14 pm »
Well, to start with, the blah, blah, blah part would be the most relevant part.

But additionally, the question of whether it was "resale" when bought back by the original seller is open to interpretation.
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Bench

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Re: Cubs in hot water?
« Reply #16 on: February 16, 2012, 01:16:49 pm »
http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=094-0020

Here is the actual law.  Look at this part of it and tell me how you interpret that.

"(b) This Act does not apply to the resale sale of tickets 
of admission to a sporting event, theater, musical performance, 
or place of public entertainment or amusement of any kind for a 
price in excess of the printed box office ticket price by a 
ticket broker who meets all of the following requirements: blah, blah, blah"


Again, "resale" is the issue. 
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JimR

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Re: Cubs in hot water?
« Reply #17 on: February 16, 2012, 01:18:09 pm »
Again, "resale" is the issue. 

and if the first sale is a sham?
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MusicMan

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Re: Cubs in hot water?
« Reply #18 on: February 16, 2012, 01:19:33 pm »
and if the first sale is a sham?

If being sold within the same controlling entity?  Yes.
I believe there ought to be a constitutional amendment outlawing AstroTurf and the designated hitter. I believe in the sweet spot, soft-core pornography, opening your presents Christmas morning rather than Christmas Eve and I believe in long, slow, deep, torture of Bud Selig.

HudsonHawk

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Re: Cubs in hot water?
« Reply #19 on: February 16, 2012, 01:19:41 pm »
Well, to start with, the blah, blah, blah part would be the most relevant part.

Actually, since this was about the legality of reselling, the part I quoted was most relevant, as it demonstrated that it wasn't necessarily illegal to resell ticket.  Still, the blah blah blah was the longest part, and I figured most here could read it themselves.

Quote
But additionally, the question of whether it was "resale" when bought back by the original seller is open to interpretation.

They weren't bought back by the original seller.  Two separate entities.  Owned by the same parent corp, I know, but the law is often particular about the particulars.  As I said, I agree it's deceitful and shameful.  I'm just not surprised that it's not technically illegal.
The rules of distinction were thrown out with the baseball cap.  It does not lend itself to protocol.  It is found today on youth in homes, classrooms, even in fine restaurants.  Regardless of its other consequences, this is a breach against civility.  A civilized man should avoid this mania.

HudsonHawk

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Re: Cubs in hot water?
« Reply #20 on: February 16, 2012, 01:20:12 pm »
Again, "resale" is the issue. 

Right.  Reselling is not necessarily illegal in Illinois.
The rules of distinction were thrown out with the baseball cap.  It does not lend itself to protocol.  It is found today on youth in homes, classrooms, even in fine restaurants.  Regardless of its other consequences, this is a breach against civility.  A civilized man should avoid this mania.

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Re: Cubs in hot water?
« Reply #21 on: February 16, 2012, 01:26:36 pm »
Right.  Reselling is not necessarily illegal in Illinois.

Didn't this scalping thing have something to do with all the seats sold across Waveland and the Cub's inability to expand the staduim or am I full of horse feathers?

Bench

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Re: Cubs in hot water?
« Reply #22 on: February 16, 2012, 01:32:27 pm »
and if the first sale is a sham?

Then there is no "re."


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Bench

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Re: Cubs in hot water?
« Reply #23 on: February 16, 2012, 01:32:55 pm »
Right.  Reselling is not necessarily illegal in Illinois.

The point being that they weren't reselling.  They were selling.

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HudsonHawk

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Re: Cubs in hot water?
« Reply #24 on: February 16, 2012, 01:37:16 pm »
The point being that they weren't reselling.  They were selling.

No, the Cubs were selling, the Ticket Co. was re-selling.  Yes, they were owned by the same parent corporation, but isn't the purpose of wholly-owned subsidiaries to establish separate legal entities, in part at least, to isolate the two for legal reasons (regulation, taxes, liability, whathaveyou)?
The rules of distinction were thrown out with the baseball cap.  It does not lend itself to protocol.  It is found today on youth in homes, classrooms, even in fine restaurants.  Regardless of its other consequences, this is a breach against civility.  A civilized man should avoid this mania.

Bench

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Re: Cubs in hot water?
« Reply #25 on: February 16, 2012, 01:48:00 pm »
No, the Cubs were selling, the Ticket Co. was re-selling.  Yes, they were owned by the same parent corporation, but isn't the purpose of wholly-owned subsidiaries to establish separate legal entities, in part at least, to isolate the two for legal reasons (regulation, taxes, liability, whathaveyou)?

Evidently.  If they wanted to outlaw people with controlling interests in both entities the legislature could easily write it that way. 
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MusicMan

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Re: Cubs in hot water?
« Reply #26 on: February 16, 2012, 02:01:20 pm »
No, the Cubs were selling, the Ticket Co. was re-selling.  Yes, they were owned by the same parent corporation, but isn't the purpose of wholly-owned subsidiaries to establish separate legal entities, in part at least, to isolate the two for legal reasons (regulation, taxes, liability, whathaveyou)?

Yes.  But things like this are why Transfer Pricing is a specialty.
I believe there ought to be a constitutional amendment outlawing AstroTurf and the designated hitter. I believe in the sweet spot, soft-core pornography, opening your presents Christmas morning rather than Christmas Eve and I believe in long, slow, deep, torture of Bud Selig.

Limey

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Re: Cubs in hot water?
« Reply #27 on: February 16, 2012, 03:00:26 pm »
FWIW, the IL courts have ruled Premium to be a reseller.  The interesting part of the ESPN 2 article (and I can't believe I'm using "interesting" and "ESPN" in the same sentence) is the question of whether the Royals (or Astros) are getting screwed out of their share of ticket sales.  The Cubs are using a proxy to sell tickets at market value so that they can avoid pricing them at market value...and sharing those proceeds with the visiting team.

I have no idea whether baseball, or even the scammed road teams, give two shits about this.
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MusicMan

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Re: Cubs in hot water?
« Reply #28 on: February 16, 2012, 03:12:47 pm »
I have no idea whether baseball, or even the scammed road teams, give two shits about this.

We're quite certain MLB gives no shits about the Astros getting screwed.
I believe there ought to be a constitutional amendment outlawing AstroTurf and the designated hitter. I believe in the sweet spot, soft-core pornography, opening your presents Christmas morning rather than Christmas Eve and I believe in long, slow, deep, torture of Bud Selig.

Limey

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Re: Cubs in hot water?
« Reply #29 on: February 16, 2012, 03:29:07 pm »
We're quite certain MLB gives no shits about the Astros getting screwed.

But the Royals, man!  The Royals!
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Re: Cubs in hot water?
« Reply #30 on: February 16, 2012, 03:37:36 pm »
The Cubs are using a proxy to sell tickets at market value so that they can avoid pricing them at market value...and sharing those proceeds with the visiting team.

There is no "gate split" in MLB.  All revenue is reported and divided up as either "Central Revenue" or "Local Revenue" and figured into the Revenue Sharing Plan accordingly.  But the Cubs aren't holding out on their visitors by doing this.
The rules of distinction were thrown out with the baseball cap.  It does not lend itself to protocol.  It is found today on youth in homes, classrooms, even in fine restaurants.  Regardless of its other consequences, this is a breach against civility.  A civilized man should avoid this mania.

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Re: Cubs in hot water?
« Reply #31 on: February 16, 2012, 03:40:48 pm »
There is no "gate split" in MLB.  All revenue is reported and divided up as either "Central Revenue" or "Local Revenue" and figured into the Revenue Sharing Plan accordingly.  But the Cubs aren't holding out on their visitors by doing this.

There hasn't been a gate split since 1997.
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HudsonHawk

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Re: Cubs in hot water?
« Reply #32 on: February 16, 2012, 03:45:06 pm »
There hasn't been a gate split since 1997.

Edit:  When there was, it wasn't very equitible.  It was 95-5 for the NL.
« Last Edit: February 16, 2012, 03:48:08 pm by HudsonHawk »
The rules of distinction were thrown out with the baseball cap.  It does not lend itself to protocol.  It is found today on youth in homes, classrooms, even in fine restaurants.  Regardless of its other consequences, this is a breach against civility.  A civilized man should avoid this mania.

Limey

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Re: Cubs in hot water?
« Reply #33 on: February 16, 2012, 03:52:30 pm »
There is no "gate split" in MLB.  All revenue is reported and divided up as either "Central Revenue" or "Local Revenue" and figured into the Revenue Sharing Plan accordingly.  But the Cubs aren't holding out on their visitors by doing this.

Revenue from Premium's ticket sales aren't factoring into the calculation of central or local revenue.  But the profits go straight into the club owner's sky-rocket.
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HudsonHawk

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Re: Cubs in hot water?
« Reply #34 on: February 16, 2012, 03:58:18 pm »
Revenue from Premium's ticket sales aren't factoring into the calculation of central or local revenue.  But the profits go straight into the club owner's sky-rocket.

Right.  Neither is the premium on Stubhub on Astros or any other club's ticket.  But then the Cubs aren't benefiting, the Tribune is.  And I'm not arguing it's not a sweet deal for the Tribune.
The rules of distinction were thrown out with the baseball cap.  It does not lend itself to protocol.  It is found today on youth in homes, classrooms, even in fine restaurants.  Regardless of its other consequences, this is a breach against civility.  A civilized man should avoid this mania.

Limey

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Re: Cubs in hot water?
« Reply #35 on: February 16, 2012, 04:02:53 pm »
Right.  Neither is the premium on Stubhub on Astros or any other club's ticket.  But then the Cubs aren't benefiting, the Tribune is.  And I'm not arguing it's not a sweet deal for the Tribune.

I think we've all accepted that it's legal but douchy.  I just wonder why MLB hasn't asked for its cut as it's clearly a dodge; as we know, MLB is a law unto itself.
« Last Edit: February 16, 2012, 04:31:33 pm by Limey »
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Re: Cubs in hot water?
« Reply #36 on: February 16, 2012, 04:23:34 pm »
Right.  Neither is the premium on Stubhub on Astros or any other club's ticket.  But then the Cubs aren't benefiting, the Tribune is.  And I'm not arguing it's not a sweet deal for the Tribune.

Doesn't Stubhub have a deal with MLB?
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HudsonHawk

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Re: Cubs in hot water?
« Reply #37 on: February 16, 2012, 05:03:48 pm »
Doesn't Stubhub have a deal with MLB?

I'm not sure, but I wouldn't be surprised if they do.
The rules of distinction were thrown out with the baseball cap.  It does not lend itself to protocol.  It is found today on youth in homes, classrooms, even in fine restaurants.  Regardless of its other consequences, this is a breach against civility.  A civilized man should avoid this mania.

Clark in Denver

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Re: Cubs in hot water?
« Reply #38 on: February 16, 2012, 05:32:39 pm »
Yes, they were owned by the same parent corporation, but isn't the purpose of wholly-owned subsidiaries to establish separate legal entities, in part at least, to isolate the two for legal reasons (regulation, taxes, liability, whathaveyou)?

Is Jeff Skilling around to answer this question?
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Re: Cubs in hot water?
« Reply #39 on: February 16, 2012, 07:19:38 pm »
We're quite certain MLB gives no shits about the Astros getting screwed.

That's not quite true: they clearly love it when the Astros get screwed.
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