Last week the government announced plans to make it illegal for tickets for concerts, theatre, comedy, sports and other live events to be resold for more than their original price.
For too long, ticket sellers have scammed fans by using bots to acquire batches of tickets and resell them at inflated prices. They have become a shadow industry on resale sites, with no consequences. This government puts fans first. Our new proposals will put an end to the touts’ racket and make world-class music, comedy, theater and sport affordable for all. Lisa Nandy, Minister of Media, Culture and Sport
On Wednesday, the Department for Media, Culture and Sport (DCMS) announced a crackdown on the resale of tickets above face value, a measure aimed at halting ticket solicitation and regulating resale platforms.
Ticket selling has become increasingly sophisticated in recent years, and these new measures aim to ban the illegal practice, but the restrictions on resale will not apply to Wimbledon bond holders, who will continue to be allowed to sell their prime seats for the championships.
Touts buy large quantities of tickets online, often using automated bots, before relisting them on resale platforms at hugely inflated prices, causing misery to millions of fans and damaging the live events industry.
The new proposals aim to stamp out the practice, which will make the resale of tickets above face value illegal, although unavoidable fees, including service charges, will continue to be charged.
The service fees charged by resale platforms will be capped to avoid undermining the price cap, and resale platforms will have a legal duty to monitor and enforce compliance with the price cap, while individuals will be prohibited from reselling more tickets than they are allowed to purchase on the initial ticket sale.
“For too long, ticket sellers have defrauded fans by using bots to acquire batches of tickets and resell them at inflated prices,” said Culture Minister Lisa Nandy. “They have become a shadow industry on resale sites, with no consequences.
“This government puts fans first. Our new proposals will stop the touts’ racket and make world-class music, comedy, theater and sport affordable for all.”
Ministers say bond programs ‘work very differently to one-off event tickets (they are financial instruments) and allow companies to generate secure upfront revenue that can be invested in delivering world-class sporting, music and other live events to the public’.
In addition to bond schemes, tickets sold by registered charities for fundraising purposes should also be exempt.
At Wimbledon, bonds guarantee the ticket holder a seat on Center Court of No. 1 Court for each day of the Championships for 5 years, along with access to exclusive restaurants and bars.
The holder may resell it at any price or markup, or transfer it if he cannot attend Wimbledon, thereby recouping some of the costs.
In practice, seats for the first rounds of the tournament are sold for £9,000 per ticket, while tickets for the men’s finals can cost up to £40,000 for a pair.
In April, Wimbledon said an issue of up to 1,250 No 1 Court bonds was oversubscribed at £73,000 each, while last year 2,520 Center Court bonds were priced at £116,000 each, compared to £80,000 each at the previous issue.
The All England Lawn Tennis and Croquet Club (AELTC) says bonds provide crucial funds for the running of The Championships and the maintenance of the facilities, while they have also helped fund the installation of the retractable roofs on Center Court and No 1 Court.
The Club adds that bonds will also allow them to subsidize other tickets, such as £30 ground passes, and that profits from the championships will be reinvested in the facilities or given to the Lawn Tennis Association.
It argues that a price cap on the resale of its bonds would be extremely damaging because it would reduce demand for the issuance of bonds, which have raised more than £500 million in the past decade and are regulated as financial instruments by the Financial Conduct Authority.
The new measures proposed by the DCMS require primary legislation and will be included in next year’s King’s Speech.
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