Wrigley Field Premium Ticket Articles
Cubs create season ticket resale plan
Copyright 2002 Paddock Publications, Inc.
Chicago Daily Herald
June 17, 2002, Monday All
SECTION: SPORTS; Pg. 3
LENGTH: 448 words
HEADLINE: Cubs create season ticket resale plan
BYLINE: Kent McDill Daily Herald Sports Writer
BODY: The Cubs are trying to get a piece of the lucrative and active
secondary market for their own game tickets.
In a letter to season-ticket holders, the Cubs announced the creation
of the Wrigley Field Premium Ticketing Services, which will handle the
transfer of tickets from season-ticket holders who want to sell individual
game tickets.
This is in direct response to the obvious market for such tickets, which
the Cubs recognized in their letter to season-ticket holders.
"Based on what we see online and at the many legitimate and illegitimate
ticket-broker operations, people are willing and anxious to purchase excellent
seats for our high-demand games," said the letter, which was signed
by Cubs executive vice president for business operations Mark McGuire.
"As our best customers, you should benefit from this opportunity.
You should not be penalized by being forced to waste tickets you cannot
use from time to time, if there is a willing market of buyers."
Whether this is the best way for season-ticket holders to go is uncertain.
"The advantage of dealing with us is we have a reciprocal agreement
with season-ticket holders," said Jack Buttitta, owner of Best Seats
Tickets in Roselle. "When they need tickets to other events, we make
sure that is available to them. We make sure those people are taken care
of when they want tickets to other events."
In a question-and-answer format, the Cubs letter attempted to respond
to questions the new program might bring up, although it left a couple
of questions unanswered.
The service is only available for 20 "high-demand games," although
no list of such games was provided. The service is available online at
www.cubs.com.
The seller sets the price for the ticket, and if the tickets are sold,
the seller receives 85 percent of the sale price, losing the 15 percent
transaction fee. However, the funds from the purchase are not pocketed.
They are credited to the season-ticket holder's account as a down payment
toward next year's tickets.
"That's another advantage to dealing with us," Buttitta said.
"You actually get the money."
Through the Cubs' Season Ticket Exchange, the tickets cannot be sold
at less than face value because "we are concerned this service could
negatively impact our regular ticket sales," McGuire said in the
letter.
The seller is notified 48 hours before game time if the tickets do not
sell so that the seller can do something else with the ticket.
The actual ticket transfer never takes place. Once a sale is made, a
new ticket is issued at Wrigley Field to the buyer, and the seller is
instructed to then destroy the original tickets.
LOAD-DATE: June 21, 2002
Fan sues Cubs, claiming illegal ticket scalping
Copyright 2002 Associated Press
All Rights Reserved
The Associated Press State & Local Wire
These materials may not be republished without the express written consent
of The Associated Press
October 10, 2002, Thursday, BC cycle
SECTION: Sports News
LENGTH: 253 words
HEADLINE: Fan sues Cubs, claiming illegal ticket scalping
DATELINE: CHICAGO
BODY:
A baseball fan filed a lawsuit against the Chicago Cubs, accusing the
team of selling overpriced tickets through a subsidiary that competes
with local brokers.
Peter John Cavoto Jr. filed suit against Wrigley Field Premium Ticket
Services on Wednesday. His lawsuit claims that the team uses the outlet
to sell some $36 tickets for up to $130, without first making them available
at face value.
In the lawsuit, Cavoto accused the club of consumer fraud, deceptive
business practices and violating the Illinois Ticket Scalping Act, which
prohibits people who run professional sporting and entertainment events
from charging more than face value for tickets.
The lawsuit seeks an injunction barring the Cubs from engaging in the
ticket-selling practice, and seeks $100 in damages for every ticket sold
through the subsidiary for more than face value.
Mark McGuire, executive vice president of business operations for the
Cubs, would not comment about the merits of the lawsuit, but said the
team was "comfortable with the setup" of the subsidiary.
McGuire also pointed out that some attorneys helping on the case are
also involved with rooftop owners battling the team's Wrigley Field expansion
plans.
"At a minimum, the same people are involved," McGuire said.
Bauch and his partner have two rooftop owners as clients. But he said
the plaintiff in this case is not affiliated with those owners, who are
trying to preserve views of the field for paying customers who sit on
the roofs.
LOAD-DATE: October 11, 2002
Cubs in court over claims they're scalping tickets
Copyright 2003 Associated Press
All Rights Reserved
The Associated Press State & Local Wire
These materials may not be republished without the express written consent
of The Associated Press
August 20, 2003, Wednesday, BC cycle
SECTION: State and Regional; Sports News
LENGTH: 439 words
HEADLINE: Cubs in court over claims they're scalping tickets
BYLINE: By NICOLE ZIEGLER DIZON, Associated Press Writer
DATELINE: CHICAGO
BODY:
The Chicago Cubs are bilking fans by selling game tickets above face value
through a brokerage the team set up, lawyers said Wednesday during closing
arguments in a class-action lawsuit.
But what the plaintiffs call scalping is actually a licensed business
separate from the Cubs organization, team attorneys said.
Cook County Circuit Judge Sophia Hall must decide whether Wrigley Field
Premium Ticket Services, established as a "sister company" to
the Cubs last year, defrauded consumers and violated an Illinois law barring
those who sponsor an event from charging more than face value for tickets.
The trial wound down Wednesday after a week of testimony. Hall said she
would rule by Nov. 24.
Paul Bauch, an attorney for the plaintiffs, is seeking $100 per ticket
for between 1,000 and 2,000 people who bought tickets from the brokerage.
He also wants the judge to shut down the service.
The plaintiffs claim Premium is not a ticket reseller, as the Cubs say,
but instead is an agent for the Cubs that gets "high demand"
tickets the team keeps off the regular market. At the same time, the Cubs
claim certain games for which Premium holds tickets are sold out, Bauch
said.
"The Cubs dominated this corporation," Bauch said. "They
did a good job of setting it up and making it look separate."
The team directs customers to Premium for tickets to sold-out games and
even promotes the service with free television commercials aired during
Cubs broadcasts, Bauch said.
Attorneys for the team, which is owned by the Tribune Co., have argued
Premium is a Tribune Co. subsidiary that purchases tickets for resale
at its own risk.
"We are not in the business of cooking the books and making sham
transactions," said James Klenk, an attorney representing the Cubs
and Premium. "Our business is to comply with the law."
Klenk said Illinois law is clear that a broker, once licensed, is allowed
to sell tickets above face value. He said Cubs workers helped start the
business but have not been involved since Premium opened in June 2002.
The tickets offered to Premium, the Cubs say, are those that normally
would not be available at the box office until game day or shortly before
- those held for Major League Baseball officials, the media, politicians
and employees, for example.
The Cubs claim Premium actually helps fans by increasing competition
and driving down ticket costs from more than 40 other licensed brokers.
Klenk argued that other brokers who want to put Premium out of business
are behind the lawsuit.
"We are here because the ticket brokers don't like our business,"
Klenk said.
LOAD-DATE: August 21, 2003
Judge rules Cubs didn't break scalping law
Copyright 2003 Associated Press
All Rights Reserved
The Associated Press State & Local Wire
These materials may not be republished without the express written consent
of The Associated Press
November 25, 2003, Tuesday, BC cycle
SECTION: State and Regional; Sports News
LENGTH: 316 words
HEADLINE: Judge rules Cubs didn't break scalping law
BYLINE: By ERIC FIDLER, Associated Press Writer
DATELINE: CHICAGO
BODY:
A Cook County judge ruled in favor of the Chicago Cubs on Monday in a
lawsuit that accused the team of illegally running a ticket brokerage.
Judge Sophia Hall ruled the brokerage did not violate state ticket scalping
laws that ban those who sponsor an event from charging more than face
value for tickets.
She said the law does not prohibit the Tribune Co. from owning both the
Cubs and Wrigley Field Premium Ticket Services, and that the Cubs did
not engage in unfair or deceptive practices. Hall ruled there was insufficient
evidence to prove the Cubs tried to limit the number of tickets available
at the box office in order to sell them to Premium.
The class-action lawsuit filed in October 2002 by ticket buyers claimed
that the Cubs bilked fans by selling game tickets above face value through
Premium.
The lawsuit claimed that Premium is not a ticket reseller, as the Cubs
say, but instead is an agent for the Cubs that gets "high demand"
tickets the team keeps off the regular market.
Attorneys for the team argued Premium is a Tribune Co. subsidiary that
purchases tickets for resale at its own risk.
In her ruling, Hall wrote that if people are concerned about a ticket
broker and amusement being owned by the same company, the Legislature
should change the law.
James Klenk, who represented the Cubs and Tribune Co., called the ruling
a victory for Cubs fans.
"Allowing Premium to compete is a source of tickets at lower prices"
than those charged by other brokers, he said.
The tickets offered to Premium, the Cubs have said, are those that normally
would not be available at the box office until game day or shortly before
- those held for Major League Baseball officials, the media, politicians
and employees, for example.
Paul Bauch, the attorney who filed the lawsuit, said he would review
the ruling and discuss with his clients whether to appeal.
LOAD-DATE: November 26, 2003
Cubs cash in big time
Copyright 2004 Gannett Company, Inc.
USA TODAY
February 20, 2004, Friday, FINAL EDITION
SECTION: SPORTS; Pg. 13C
LENGTH: 654 words
HEADLINE: Cubs cash in big time
BYLINE: Mike Dodd
DATELINE: CHICAGO
BODY:
CHICAGO -- The Chicago Cubs' business successes this winter created just
a fraction of the headlines of Wednesday's Greg Maddux signing. But they
played a significant role in making the big-name acquisition happen.
Cubs management went 4-for-4 on offseason business issues, bringing
an additional $ 10 million or so to the Wrigley Field operation this year.
The Cubs gained City Council approval to add 200 premium seats behind
home plate and four additional night games each of the next three years.
They also settled a lawsuit with 11 of the 13 owners of businesses that
run rooftop parties overlooking Wrigley and won a lawsuit that enables
a subsidiary company to continue selling VIP tickets for more than face
value.
While about one-third of the additional money goes to Major League Baseball
in revenue sharing, the net gain should be more than enough to pay for
Maddux's $ 6 million salary in 2004.
"The additional income we will have from the rooftops and behind-the-plate
seating, I doubt if we would have been able to do this without that,"
general manager Jim Hendry said at the announcement of Maddux's signing.
Andy MacPhail, Cubs president and CEO, said he believes the Cubs will
have the highest payroll in the National League. The Maddux signing pushed
it to about $ 92 million, and the team is negotiating long-term deals
with pitcher Kerry Wood and first baseman Derrek Lee. The Cubs started
last year with a payroll of about $ 80 million, seventh in the NL.
Besides the new revenue streams, the NL Central champs have enjoyed
a surge in season ticket sales. Full-season equivalents are nearing 20,000
in the 39,000-plus-seat ballpark.
The deal with the city of Chicago was approved last week, giving Wrigley
landmark status (which limits changes without approval) in exchange for
phasing in 12 additional night games over three years and the new seats.
Construction of the premium seats, three rows from dugout to dugout,
began immediately and should be completed by Wrigley's opening day April
12. Ticket prices are expected to be in the $ 200-$ 250 range.
MacPhail said the new seats would cut 10-12 feet from foul territory
behind the plate. The fabled brick wall behind home plate was taken down
and will be rebuilt in front of the new seats. "It won't be quite
as tall," he said. "We'll go to the effort and expense of using
as many of the same bricks as possible."
This week the Cubs changed the starting times of four weekday games,
giving them 22 night games this year. They're permitted to increase that
to 30 by 2006 but still are prohibited from playing regular-season games
at night on Friday, Saturday or Sunday (with the exception of nationally
televised Sunday games).
The team agreed to establish a $ 1 million fund to deal with neighborhood
issues surrounding the night games, such as sanitation and traffic.
The settlement with the rooftop owners will bring an estimated $ 1.5
million-$ 1.7 million to the club this year. The Cubs sued the businesses
in December 2002, claiming they were stealing the team's product. The
20-year agreement calls for the rooftop owners to give the team 17% of
their gross revenue.
The team prevailed in a suit accusing it of running an illegal ticket
scalping operation. A Cook County judge ruled in November that Wrigley
Field Premium Ticket Services didn't violate state scalping laws that
prohibit promoters of an event from charging more than face value. The
Cubs argued successfully that the business was a subsidiary of Tribune
Co., which owns the team.
During the trial the team said it sold an average of fewer than 150
tickets a game through the brokerage. It says it only sells tickets held
for VIPs and aren't available to the general public.
"We're going to have as many tickets, if not more, available to
the general public as last year," MacPhail said.
Contributing: Greg Boeck in Phoenix
GRAPHIC: PHOTO, B/W, John Zich, USA TODAY; Roof with a view: The Cubs
will receive 17% of the gross revenue from the owners of the buildings
with rooftop views of Wrigley Field.
LOAD-DATE: February 20, 2004
 |
