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More Crony Capitalism: Sioux Falls Wants to Ban Ticket Scalping

Sioux Falls joins the march down the great South Dakota path of crony capitalism with its proposed ordinance to outlaw ticket scalping:

Sioux Falls business owner Brian Opp is speaking up to make sure the ordinance, if passed, does not hurt his future opportunities. As an online ticket broker, he has sold tickets to events anywhere from New York to California.

"We never really did anything in the South Dakota market, and the Sioux Falls market, because there wasn't any events going," Opp said.

With new venues including the Denny Sanford PREMIER Center and Sanford Pentagon, Opp's small business could get a boost.

"There needs to be some clarity. We need to differentiate between a scalper and a broker," Opp said [Brady Mallory, "Proposed Ticket Scalping Ordinance Concerns," KELOLand.com, 2013.08.15].

Yes, let's differentiate. A scalper may be regular guy in the street who bought a couple of tickets to Hairball, lost his date to a business trip or appendicitis, and now just wants to make a few bucks on last-minute market demand. A broker makes a business out of exacerbating desperate demand by hogging tickets, then gives the city a piece of the action.

Sioux Falls music aficionados Scott Hudson and Scott Ehrisman see the anti-scalping ordinance as a waste of time. Hudson doesn't think the ordinance will address the real problem of the music industry ripping off fans. Ehrisman sees a free-market fallacy:

The reason I am on the fence about this, because, believe it or not, I am all for the FREE market. If I buy a used car for $1000, fix it up for another $200 then sell it for $1600, am I considered a ‘car scalper’? If someone buys a ticket, or several tickets to a popular show that they know will sell out, what is the problem with profiting from re-selling those tickets for more? All we need to do is look at check cashing places, credit card companies and VL casinos in this state. They all make HUGE profits on ‘re-selling’ something at an enormous rate [Scott Ehrisman, "Is 'Ticket-Scalping' a Problem in Sioux Falls? And Should It Be Illegal?" South Dacola, 2013.08.12].

As usual, the powers that be in South Dakota believe in raider capitalism for usurers who profit on the desperate financial straits of working people. But when those same average Joes try to make a few dollars on the side, free-marketeering becomes a crime.

19 Comments

  1. DB 2013.08.16

    So do you propose they turn down any functions affiliated with the NCAA?

  2. Owen Reitzel 2013.08.16

    I'm not a fan of scalping or Stub Hub which is legalized scalping. I was lucky enough to get 2 Elton John tickets at face value when he cam to Sioux Falls a few years ago. I heard then that there were computer programs that would bump people to the front of the line in buying tickets. These people in turn would around and sell them at inflated prices. Capitalism? Not really. They had an unfair advantage plus they had no desire to go to the concert.
    The same thing happened when I went to Stub Hub. Somebody buys up the tickets and turns around and makes a big profit on it. I didn't buy these.
    I doubt if a law would work but I'm not necessary against it.

  3. DB 2013.08.16

    A lot of the street scalpers have turned into scammers where the tickets aren't even legit. I would say that is the big difference between individuals and companies. Regardless of what you heard, most of the systems don't allow people to jump in line which includes Ticketmaster. However, if you belong to fan clubs or certain member clubs, you can usually buy them a day or two before they are released to the public. I have a friend who pays to be a member of a UFC club, and in return he buys multiple floors seats in the first 5 rows and turns around and sells them because he has first chance at them. This advantage does cost money and is risky at times. Also, most artists have the option to take as many as they want and sell them in different avenues like ticket brokers. I feel this is perfectly fine as they are trying to maximize their profits just like any other business.

    The big issue with scalpers is not having enough time to do your due diligence to see if they are legit, and not being able to hold someone accountable if they turn up fake. This happens way too often.

  4. caheidelberger Post author | 2013.08.16

    What's the NCAA's problem with the free market? They don't even let their employee/athlete/students seek fair market value for their skills.

    So some scalpers are scammers. Do we ban all scalping? Or do we prosecute the scammers under existing fraud laws? Or are you saying, DB, that government should step in and protect people when they are unable to make fully informed decisions in the marketplace? (Say yes to the latter, and get ready for my health care critique.)

  5. DB 2013.08.16

    The NCAA has been performing legalized slavery for quite some time. I don't agree with it but that's not a line of revenue the event center can look past if they look to stay profitable, or at least stay running without more public money.

    Scalping isn't illegal, and in most place that ban it, it is strictly illegal outside the venue on the street. I think they are just trying to block where the problems occur most. I could care less if they protect the people from making stupid last minute decisions, but I would concede to the NCAA's demands to protect that line of revenue if it meant only upsetting a few people. Why should we punish everyone else and not allow them to view NCAA events in our arena and possibly require more tax money from them so a few people can extort unprepared viewers?

    If the NCAA wasn't asking for this, we wouldn't be talking about it and scalping would be remain perfectly legal. The city leaders are being forced to play these games so I find your anger misplaced. I guess I would ask the people if they are willing to give up NCAA events and possibly more of their income to allow scalping. What do you think they would say?

  6. caheidelberger Post author | 2013.08.16

    So the money we can make on NCAA games negates any discussion about whether a policy is right or wrong? If the NCAA wants socialism or the nanny state, it's fine, but since I don't have any big money to offer, my calls for various socialist programs are evil?

  7. DB 2013.08.16

    As long as the NCAA has the power, venues will follow what they dictate. Discussing the policy is fine, but to act like this is all about the Sioux Falls leaders trying to protect their interests is complete BS. They have the pocketbooks of every Sioux Falls taxpayer in mind when considering this ban. As I said before, would you rather they punish all workers in Sioux Falls with higher taxes so a few can scalp tickets and make a little money? Your article left out the driving force in all of this....the NCAA and the revenue needed to fund the events center. They are not doing this to keep the little guy who is trying to make a few bucks down, as you so imply.

    "But when those same average Joes try to make a few dollars on the side, free-marketeering becomes a crime."

    That is not their motive for doing this and you know that.

  8. MIchael Black 2013.08.16

    I've watched my wife try to get tickets to a concert in SF scream in frustration because while there were a handful of tickets available, no two seats were together.

    The scalper is the only one who wins. The venue loses. The artist loses. The fan loses. While scalping may be perfectly legal, it is morally wrong in my judgment.

  9. Owen Reitzel 2013.08.16

    "The scalper is the only one who wins. The venue loses. The artist loses. The fan loses. While scalping may be perfectly legal, it is morally wrong in my judgment."

    Michael I totally agree with you

  10. Douglas Wiken 2013.08.16

    If more tickets are desired than there are tickets, the ticket sale should be a lottery with those not winning getting their money back. No need for scalpers.

  11. caheidelberger Post author | 2013.08.17

    No, DB, their motive appears to be crony capitalism. Their focus is on helping the big guys. Hanging the little guys is collateral damage in this case, but it happens.

    Again, DB makes clear true Republicanism: the GOP talk about free markets and capitalism is hogwash. Money wins over principles.

  12. caheidelberger Post author | 2013.08.17

    Michael, Owen, let me take the free-market line: suppose an artist misreads the market and charges well under market value for her product. An individual pays the artist what the artist asks, then, either knowing or discovering the true market value, resells that product for a profit. Explain to me who cheats whom again.

    In a similar vein, are the lucky folks on Antiques Roadshow cheats because they bought some trinket for $20, then discovered it's really worth $1000?

  13. DB 2013.08.17

    Their focus is on helping the events center succeed. A good thing for everyone in Sioux Falls. They are looking out for the taxpayers of Sioux Falls and the future of the city. They are doing what they have to to play with the NCAA. Just keep spinning.

    "Hanging the little guys is collateral damage in this case, but it happens. "

    What about all the little guys affected for a tax increase in the future because the events center isn't making their expenses due to not being able to be involved in NCAA activities? You're willing to hang them so people can last minute sell their tickets at a venue and extort and possibly scam even more people? It's not like these sellers still can't do it online or days before like most normal people.

  14. Bill Dithmer 2013.08.17

    "The scalper is the only one who wins. The venue loses. The artist loses. The fan loses."

    How can you say that with a straight face? Sure the scalper gets his money so he is a winner. But to say that the venue hasnt recieved their money is a falsehood. If the seats are sold, they are paid in full for their services as far as tickets are concerned. The same with the artist. If there arent seats for the fan that means that those seats have been sold to someone for market price.

    "A lot of the street scalpers have turned into scammers where the tickets aren't even legit."

    I have bought tickets to pro events in two different cities from scalpers. Every time it was out in front of the venue and every time we went to the ticket window to varify that the tickets were good. Problem solved.

    The Blindman

  15. Douglas Wiken 2013.08.17

    These sell-out events suck money out of South Dakota and send it to the coasts. Why anybody thinks these things benefit economy or society escapes me unless the officials are all getting paid off by contractors, concessionaires, etc.

  16. Roger Elgersma 2013.08.17

    Price the tickets so the people who built the building can get a return.

  17. Chris S. 2013.08.18

    "StubHub is legalized scalping"

    Really? Maybe for some. For others, it's a way to unload the tickets you bought, but now can't use because your plans changed. For still others, it's a way to get tickets to events you might not have known about when the tickets went on sale. Or, again, if your travel plans change and you're going to be somewhere where there's a concert or sporting event you want to see. It will even let you see where your seats are, and make sure you can get x number of seats together, if necessary.
    I'm not trying to do a promo for StubHub (I think their fees are kind of high), but they do have a purpose. As another commenter noted, it's not like StubHub stole the tickets; they were paid for already, so the venue and artist/team already received their fee for the event.

    The alternative to StubHub is... not seeing events at all in some cases. Without something like StubHub, you'd better make sure that the next time you're in Minneapolis or Las Vegas or wherever, that you've scouted all the entertainment events months in advance, and have pounced on all the tickets you want as soon as they were available. Otherwise—too bad, I guess.

  18. Chris S. 2013.08.18

    Also: What about people who buy season tickets for the Vikings or Chiefs, knowing that they can't make it to all the games? They are able to go to about half the games, and a season ticket is the best bet.

    What are they supposed to do if they can't resell their tickets? Not buy the tickets and stay home? Or buy the season ticket and eat the loss for the games they miss (not to mention, leaving empty seats at the game that nobody else can use either)?

  19. Douglas Wiken 2013.08.18

    Forget about corporate sports. They are irrelevant mind-rot. Cheer for Toyota, GM, Google whatever ...same corporate crap. Get a tee-shirt with "None of the Above" on it instead of the logo for a corporate collection of jocks..

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