Washington, D.C. — Today, Rep. Robert Garcia, Ranking Member of the Committee on Oversight and Government Reform, demanded answers from StubHub CEO Eric Baker following reports that Baker is also part owner and managing director of Andro Capital, a hedge fund that has made millions of dollars in profit through StubHub. Reports allege that StubHub worked with sophisticated scalpers to outbid normal customers, and then re-sell tickets for profit.
“Reports that StubHub's CEO may have profited from a ticket brokerage while running one of the nation's largest ticket marketplaces are deeply troubling. If true, this is a blatant conflict of interest that raises serious questions about whether consumers were treated fairly. We are demanding answers because the American people deserve transparency,” said Ranking Member Robert Garcia.
In the letter to StubHub CEO Eric Baker, Ranking Member Robert Garcia wrote, “For millions of Americans hoping to attend their favorite concert, sports game, or event, buying tickets has gotten outrageously expensive. This is in part because consumers are competing against sophisticated scalpers, who snap up tickets to resell on third-party websites like StubHub, which is marketed as “the leading marketplace for fans to buy and sell tickets.” Recent news reports have revealed concerning and apparently unethical business relationships between StubHub, a hedge fund in which you maintain management and ownership stakes, and an affiliate. Reports suggest that you have financed and profited from the very scalpers that are locking fans out of affordable ticket sales in the first place, and that you are further ripping off consumers and smaller sellers by giving yourself preferential treatment on the StubHub platform. Oversight Democrats are investigating whether you have manipulated markets for your own benefit, while Americans are left paying higher costs in an unfair system.”
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