Ticket Resale Cap: Threat to British Sport?
- A government consultation explored capping resale prices for live event tickets to protect consumers from ticket touts.
- the Center for Economics and Business Research (CEBR) estimates that a 25% increase in unsold tickets could cost the UK economy £183 million.
- Beyond the ticket price, secondary market purchasers spend an average of £629 on ancillary goods and services.
The proposed ticket resale price caps could damage the UK sports economy, a government initiative that might backfire. Analysis suggests these caps could reduce ticket availability and harm the live events sector. Specifically, a 25% increase in unsold tickets could cost the UK economy £183 million, perhaps impacting team GB’s funding. Moreover, price controls may drive ticket sales into unregulated, riskier platforms, increasing fraud. this is a critical issue for fans looking for the best deals. News Directory 3 provides coverage of the evolving landscape of ticket sales. Discover what choice solutions, like interoperability, might bring to the ticketing system.
Ticket Resale Price Caps Threaten UK Sports Economy
Updated May 26, 2025
A government consultation explored capping resale prices for live event tickets to protect consumers from ticket touts. Though, research indicates this approach could backfire, leading to fewer available tickets and notable economic damage to the live events sector.
the Center for Economics and Business Research (CEBR) estimates that a 25% increase in unsold tickets could cost the UK economy £183 million. This loss could have funded team GB’s entire Paris 2024 Olympic campaign, or the equivalent of selling out Wembley Stadium 10 times at £90 per ticket.
Beyond the ticket price, secondary market purchasers spend an average of £629 on ancillary goods and services. Price caps leading to empty seats would eliminate this associated spending.
Currently, primary ticket markets balance revenue goals with demand uncertainty, often resulting in lower prices than the market would bear. Secondary markets, however, reflect supply and demand, leading to fluctuating resale prices.
CEBR’s findings highlight several ways resale price caps could reduce ticket availability:
- Reduced incentive to resell tickets.
- Decreased motivation to attend events.
- Unregulated sales on riskier platforms.
- Platform constraints and market exit risks.
- Price floors and unsold inventory.
The shift to unregulated platforms presents a greater risk of fraud compared to official secondary marketplaces. Research indicates higher rates of ticket fraud in markets with price caps.
Such as, a Bradshaw advisory study comparing fraud rates in Ireland and Victoria, Australia, revealed that 13.6% of Irish event-goers reported ticketing fraud as caps were implemented in 2021. In contrast, the UK saw only 3.8% of buyers report fraud, despite higher resale volumes.
Capping resale prices on regulated platforms may push ticket sales into unregulated black markets, increasing vulnerability to fraud. Recent banking reports show a significant portion of ticket scams originate from social media platforms.
Evidence suggests price caps on regulated resale platforms may have unintended consequences for consumers. A potential solution is interoperability, establishing automated ticket verification processes between retailers to identify illegal bot activity and verify ticket information.
What’s next
Policymakers should consider the full spectrum of consumer welfare and the economic activity supported by the secondary ticket market before assuming price caps are a solution. Interoperability could bring innovation to the ticketing system by establishing multi-channel distribution.