Why Does a $30 Ticket Become a $600 Ticket? : The answer has set off--once again--a drive to set limits on the prices that ticket brokers can charge in California

The furor over ticket brokers has reignited.

Here’s the issue: Why is it against the law for a “scalper” to sell $30 concert tickets foras much as $600 outside an arena, but legal for a “broker” to sell the same ticket for the same amount a block away?

That’s what the police department’s Chief William Rathburn, commanding officer of operations, South Bureau LAPD, wants to know--and he’s not the only one.

“In my opinion, the only thing that separates the guy we arrest (outside the arena) from the guy in the agency across the street is the wall (between them),” Rathburn said. “They’re both doing the same thing, regardless of where the sale takes place.”

Rathburn oversaw the arrest of 67 people charged with scalping tickets during Madonna’s recent five-night concert stand at the Los Angeles Sports Arena. An arena official reported the scalpers asking as much as $600 per ticket.

Now, Rathburn is hoping that the concert industry will renew its late-’80s campaign to persuade the State Legislature to set a ceiling on how much ticket brokers--who buy and then resell tickets--can charge. In the case of Madonna, some ticket brokers were also reportedly asking for up to $600 per $30 ticket.

Bill Graham, the nation’s best-known concert producer, has already begun talks with other California concert promoters to develop a proposal that would put a strict limit on the price charged by brokers for the resale of concert tickets in the state.

Graham, who is based in San Francisco, said the promoters--who have adopted the group name Californians Against Ticket Scalping--have hired a lobbyist to represent their interests in Sacramento, though the measure itself is not expected to reach the State Assembly before December.

“Everybody knows that (it) is unethical and immoral,” Graham snapped, referring to the resale of tickets at exorbitant prices. “What we intend to do is make it illegal.”

Brian Harlig, president of the California Assn. of Ticket Agencies and owner of Good Time Tickets, defends the practice of reselling tickets for profit as a function of free-market economics, and denounces Graham’s anti-scalping proposal as governmental meddling.

“This issue has been studied in the Legislature for more than 10 years and in committee after committee everyone has agreed that any kind of price restraint is way off the mark,” Harlig asserted. “Regulating free enterprise is a ludicrous idea. I suggest that Mr. Graham do a little more homework before he wastes any more of the taxpayers’ money.”

Scalping--selling tickets on or near the grounds of an event without a license--is a misdemeanor in California. That’s the law under which the 67 people at the Madonna shows were arrested. Still, no law prohibits individuals from buying up blocks of seats and reselling tickets for profit off the grounds. That’s why ticket brokers aren’t violating any laws.

To prevent brokers from buying up huge blocks of choice seats, concert promoters and facility owners often set limits on the amount of tickets individual consumers are allowed to purchase. On particularly hot shows, the maximum is usually six tickets per customer.

But brokers--not to be confused with authorized ticket vendors such as Ticketmaster and Ticketron, which sell tickets in cooperation with promoters for a limited service fee--circumvent these restrictions in various ways.

Brokers buy tickets from fans who purchase them through regular ticket outlets, and also pay their own employees to stand in line at the box office and at ticket outlets. In San Francisco, Graham says, brokers have even begun paying groups of homeless people to sleep overnight at ticket outlets in order to obtain large quantities of tickets.

Fred Rosen, chairman of the board of Ticketmaster, says: “We’ve seen busloads of people delivered to specific outlets where an individual gave them money to purchase tickets.”

“It’s perfectly legal,” says Harlig. “I still get out there and stand in line myself sometimes, just to keep tabs on what is going on.”

Insiders have said that seats are also purchased from record industry employees who are fronted complimentary passes to popular shows. Allegations have even arisen over the years that agencies obtain tickets under the table from promoters and vendors. Whatever, disgruntled fans have frequently charged that the best seats at concerts invariably end up with the brokers.

Because hundreds of choice seats for arena shows often end up in the hands of brokers, concert-goers intent on purchasing good seats at sold-out events in the Southland can expect routinely to pay three to four times face value for a ticket--or 10 to 20 times the face value for an especially hot show.

Under Graham’s proposal, no individual or agency would be allowed to resell tickets in excess of a fixed price established by the promoter and the artist. The measure would also restrict the distribution of tickets.

“Somebody has got to put a stop to this disgraceful practice. Scalpers contribute absolutely nothing to the industry,” said Graham in a phone interview from his San Francisco office. “Their services aren’t requested by the artist or the promoter and they don’t give concert-goers anything more for the money they charge them. It’s a terrible injustice.”

California wouldn’t be the first state to set a ceiling on ticket agencies. New York, Hawaii and Illinois enacted stiff ticket brokering measures years ago.

In New York, for instance, agencies are prohibited from charging more than $2 above the face value of the tickets. This has led to a large black market in New York--and the moving of the legal operations to nearby states. As a result, the law has been largely ineffective, according to Richard M. Kessell, executive director of the New York State Consumer Protection Board.

Rosen, whose Ticketmaster firm works with promoters in the sale of tickets (see adjoining story), supports Graham’s proposal for a ceiling on brokers.

But he wonders whether such a law would be any more effective here than in New York, where, he said, brokers have avoided prosecution by moving their operations to New Jersey and Connecticut and having customers charge tickets by phone.

“Putting a law on the books is great, but if no one prosecutes offenders, what good is it?” Rosen said.

“There is no consumer item which is so mispriced as a concert ticket,” he continued. “Everybody wants a front-row seat. I guess we should build vertical buildings instead of horizontal ones. If consumers stopped dealing with the brokers, we wouldn’t have this problem. But the trouble is that the public will not discipline itself.”

Despite the uproar by fans when such rock heroes as Bruce Springsteen and U2 came to town in the ‘80s, the last attempt to get the legislative ceiling was a short-lived one in 1981.

Saying he wanted to “eliminate the most odious (ticket scalping),” then-Assemblyman Mel Levine introduced a bill that would have made it a misdemeanor for ticket agencies to charge more than 50% above face value. But the bill--which was heatedly opposed by an association of ticket agencies--died in the Assembly Criminal Justice Committee.

The only law governing ticket brokers in California is a 1987 measure sponsored by former State Sen. Joseph Montoya that requires brokers to return deposits if a show doesn’t take place, and prevents them from charging prices higher than advertised. Concert promoters and facility owners have criticized the measure because it fails to set a price ceiling on ticket sales.

Critics charge that the statute’s limited scope came as a result of heavy lobbying by the California Assn. of Ticket Agencies, an organization of ticket brokers that contributed funds to Montoya’s campaigns throughout the 1980s.

California Assn. of Ticket Agencies head Harlig, insists that his profession is getting a bad rap.

“No business can survive without satisfied customers,” said Harlig, who operates out of the Good Time office in Hollywood. “People are not being forced to give money to ticket agencies. Nobody is holding a gun to their head. They pay us because they like the service we provide.”

Graham says he has nothing against free enterprise. He’s upset by what he sees as exploitation of fans.

“The argument is that if a kid doesn’t want to pay a bundle for a ticket, he doesn’t have to,” Graham said. “But it isn’t a question of free choice anymore. There are so many agencies out there buying up tickets that no reasonably priced seats are available for fans with lesser income.

“Kids who can’t afford to cough up hundreds of dollars for a ticket are completely excluded from the process. It’s just not fair.”

Jeff Berke, a Westside attorney who represents clients in the music business and who once paid a broker $175 for a Springsteen ticket, thinks promoters face an uphill battle.

“While it’s true that Bill Graham and other promoters have financial and political clout, “ Berke said, “I don’t think they have the same vested interest in seeing something like this bill pass as the brokers do in fighting it.”

Berke believes there is an easier solution to the scalping crisis. In an article he is preparing for publication in the American Bar Assn. Entertainment and Sports Lawyer magazine, he maintains that artists opposed to ticket scalping could use an existing California statute, Civil Code Section 3344, to sue brokers for violating their rights of privacy and publicity.

The law prohibits the use of an artist’s name, voice, signature, photograph or likeness for advertising, selling or soliciting purposes. According to Berke, entertainers like Madonna and Springsteen could bring a lawsuit against a ticket broker simply for running an advertisement using their names in the newspaper.

“These brokers are making lots of money off of artists’ names without permission,” Berke said. “Given the expansive look as to what constitutes artistic property established in the Tom Waits and Bette Midler decisions, I would argue that the time is ripe for artists concerned about ticket scalping to come forward and to take some action of their own in the form of a lawsuit.”

Ticketmaster’s Rosen says he finds Berke’s concept “fascinating. It’s a unique idea,” Rosen said. “I hope he’s right and somebody tries it.”

Brian Murphy, president of Avalon Attractions, one of the Southern California promoters who have joined Graham’s anti-scalping crusade, says he has no illusions about how difficult it may be to pass legislation limiting ticket resales.

“The brokers have a very powerful lobby in California,” Murphy said. “The people in Sacramento use the services of brokers (to get tickets themselves) and are receptive to their needs. I’m afraid we have our work cut out for us on this one. It’s going to cost big bucks, but it needs to be done.”

THE ENFORCERS: ‘The only thing that separates the guy we arrest from the guy in the agency across the street is the wall (between them). They’re both doing the same thing, regardless of where the sale takes place.’

--William Rathburn, LAPD

THE BROKERS

‘This issue has been studied in the Legislature for more than 10 years, and . . . everyone has agreed that any kind of price restraint is way off the mark. Regulating free enterprise is a ludicrous idea.’

--Brian Harlig, broker

Associated Press TICKET PRICES--A COMPARISON It is possible--sometimes--to buy concert tickets in Southern California at face value, but not often. Many venues charge a “facility fee” above the face value. There’s an additional fee when ordering by phone through Ticketron and Ticketmaster. If you go the independent ticket broker route, prices fluctuate with demand. CONCERT DATE Snead O’Connor May 31, June 1 BOX OFFICE (Fee): Wiltern ($1.50 a Ticket) Price Per Ticket: $20.00 (Sold Out) Price for 2 Tickets (Lowest Cost Seating): $43 Total, 2 Tickets VENDORS (Handling Fee+Phone Order Fee) Ticketmaster ($1.50 + $4 a Ticket Price Per Ticket: $21.50 (Sold Out) Price for 2 Tickets (Lowest Cost Seating): $52.50 Total, 2 Tickets (Sold Out) BROKERS Lowest to Highest Range (Single Ticket Prices): $55-$100 (Sold Out CONCERT DATE Don Henley June 8 BOX OFFICE (Fee): Inglewood Forum (No Fee) Price Per Ticket: $23.50 Price for 2 Tickets (Lowest Cost Seating): $47 Total, 2 Tickets VENDORS (Handling Fee+Phone Order Fee) Ticketmaster: ($2 + $5.50 a Ticket) Price Per Ticket: $23.50 Price for 2 Tickets (Lowest Cost Seating): $60 Total, 2 Tickets BROKERS Lowest to Highest Range (Single Ticket Prices): $37.50-$200 CONCERT DATE David Byrne June 15 BOX OFFICE (Fee): Greek (No Fee) Price Per Ticket: $17-$24 Price for 2 Tickets (Lowest Cost Seating): $34 Total, 2 Tickets VENDORS (Handling Fee+Phone Order Fee) Ticketron ($0 + $4 a Ticket) Price Per Ticket: $17-$24 Price for 2 Tickets (Lowest Cost Seating): $42 Total, 2 Tickets BROKERS Lowest to Highest Range (Single Ticket Prices): $65-$80 CONCERT DATE Erasure June 15 BOX OFFICE (Fee): Irvine Meadows ($2 a Ticket) Price Per Ticket: $16-$22.50 Price for 2 Tickets (Lowest Cost Seating): $36 Total, 2 Tickets VENDORS (Handling Fee+Phone Order Fee) Ticketmaster ($2 + $5.50 a Ticket) Price Per Ticket: $18-$24.50 Price for 2 Tickets (Lowest Cost Seating): $49 Total, 2 Tickets BROKERS Lowest to Highest Range (Single Ticket Prices): $35-$110 CONCERT DATE Phil Collins June 20, 21, 23-25 BOX OFFICE (Fee): Inglewood Forum (No Fee) Price Per Ticket: $25 Price for 2 Tickets (Lowest Cost Seating): $50 Total, 2 Tickets VENDORS (Handling Fee+Phone Order Fee) Ticketmaster ($2 +$5.50 a Ticket) Price Per Ticket: $25.00 Price for 2 Tickets (Lowest Cost Seating): $63 Total, 2 Tickets BROKERS Lowest to Highest Range (Single Ticket Prices): $50-$300 CONCERT DATE Jimmy Buffett June 23 BOX OFFICE (Fee): Hollywood Bowl (No Fee) Price Per Ticket: $17.50-$35 Price for 2 Tickets (Lowest Cost Seating): $35 Total, 2 Tickets VENDORS (Handling Fee+Phone Order Fee) Ticketmaster ($2 + $5.50 a Ticket) Price Per Ticket: $17.50-$35 Price for 2 Tickets (Lowest Cost Seating): $48 Total, 2 Tickets BROKERS Lowest to Highest Range (Single Ticket Prices): $47.50-$225 CONCERT DATE Janet JacksonJune 23, 24 BOX OFFICE (Fee): Pacific Amphi (No Fee) Price Per Ticket: $20.90-$33.30 Price for 2 Tickets (Lowest Cost Seating): $41.80 Total, 2 Tickets VENDORS (Handling Fee+Phone Order Fee) Ticketron ($0 + $4 a Ticket) Price Per Ticket: $20.90-$33.30 Price for 2 Tickets (Lowest Cost Seating): $49.80 Total, 2 Tickets BROKERS Lowest to Highest Range (Single Ticket Prices): $45-$300 CONCERT DATE Oingo Boingo July 1, 3 BOX OFFICE (Fee): Universal ($2 a Ticket) Price Per Ticket: $22 (Sold Out) Price for 2 Tickets (Lowest Cost Seating): $48 Total, 2 Tickets VENDORS (Handling Fee+Phone Order Fee) Ticketmaster ($1.50 + $4.25 a Ticket) Price Per Ticket: $24.00 Price for 2 Tickets (Lowest Cost Seating): $58 Total, 2 Tickets BROKERS Lowest to Highest Range (Single Ticket Prices): $55-$125 P rices may fluctuate. In-person purchases at agency outlets can be made for slightly lower fees. Box-office fees are used to offset administrative costs ofticket sales. Source: Telephone SurveyCompiled by David Sweet