Getting tickets to the Super Bowl is the dream of most people, but in the case of Super Bowl XLIX, it became a nightmare for hundreds. Sports & business attorney, Roger R. Quiles, Esquire joined Kevin Price and co-host Chris Kidd on the Price of Business on Business Talk 1110AM KTEK (on Bloomberg’s home in Houston) to talk about this
Hundreds of fans who had already paid thousands of dollars for their Super Bowl XLIX tickets discovered, just days before the game, that the tickets they had purchased were not available. Some fans had already mad the trip to Phoenix, Arizona and paid for hotels and all their other travel arrangements.
Sports reporter Darren Rovell, in his ESPN.com article
Resale Sites Renege on Tickets reveals on fan’s Super Bowl nightmare:
Daryl Kikucki, a 37-year-old regional service manager for a jet company in Seattle, is a Seahawks season-ticket holder who sold his ticket to the NFC Championship Game so that he could afford to go the Super Bowl. He bought a $2,100 ticket listed on SeatGeek, which pulled the seat from a company called Prominent Tickets.
“Due to unforeseen circumstances, we have not received our normal allotment of Super
Bowl inventory,” read an email sent from the company to Kikuchi. “In our 26 years of
business, we have never seen a market with such limited availability to the public … If the
tickets were out there, we would rather pay to fill your orders, but we cannot buy tickets that
do not exist.” The company’s terms and conditions, which a customer must check, absolves it from
liability but does not represent that tickets that are listed might not be in its possession.”Now when I think about this game, I get sick to my stomach, knowing I’m not going to be in the stadium,” said Kikuchi, who added he had no choice but to take the company’s offer of two times what he paid.
Price of Business contributor and co-host Chris Kidd, said upon hearing this story he immediately thought of Roger Quiles, who in addition to being a sports and business attorney is an expert in contract law. Chris Kidd, a financial coach and professional investor, who teaches his clients to be more sophisticated investors, knows a thing or two about short-selling when it comes to stocks, asked Roger if these ticket brokerswere essentially short-selling Super Bowl tickets.
Quiles said,“Yes, that is exactly what it is. And for those that aren’t aware, when you’re short-selling tickets, basically what you’re doing is, you have a ticket broker who is selling a ticket that they do not own yet, at that time, for a price above where they think the market will end up. And then they go and purchase another ticket for less than that amount that they sold it for, and they pocket the difference as profit. So what happened here is that ticket brokers grossly underestimated where the market was going to end up and sold tickets for much lower than they should have. So instead of operating at a loss, as they would’ve if they had purchased tickets for above the values that they sold them for, a lot of these ticket orders didn’t get filled.”