I still don’t understand why Matchroom don’t do what you just explained. Sell the tickets themselves through a platform of their own. So stubhub pay Matchroom to have their brand plastered all over big PPV Fight. In return Matchroom hand over tickets to Stubhub, who sell them at inflated prices, and both get a 50/50 cut. But dosent the vast majority of gate money goes to the fighters especially the likes of Anthony Joshua. So don’t Matchroom only make a tiny profit at the end of the day ? Still don’t understand why matchroom don’t sell tickets themselves, as you’ve explained it’s easy in this day and age, why do they rely on another medium
I’m pretty sure the profit margins would be similar. If matchroom sell a £60 ticket to stubhub for £35. Stubhub sell it for £100 and matchroom get 50% of profit and get £62.50 for their £60 ticket. If the sold on ticketmaster for instance they may take a 10% cut and you get £54 for your ticket. Also the marketing around the fact the event is nearly sold out etc. Not many tickets left really does help drive sales. This only works for sell outs
Ahh I think you're missing what is happening. The first thing to understand is that you can buy two types of tickets from StubHub when it comes to Matchroom Events. 1. The initial ticket sale i.e. the official general sale where Matchroom set the prices. StubHub will not make anything like 50/50 on these tickets. Most of the money will go to Matchroom. 2. The resale tickets i.e. ticket touting. So, after the tickets have been sold initially, a lot of them magically reappear on StubHub as a 'resale' ticket, the idea being that whoever bought them initially can no longer go to the event, needs to sell them, and decides to use StubHub to do so (ha). The price is set by the seller and StubHub take something like a 25% cut. This is where StubHub make their money. The question is why would Matchroom use StubHub for the initial ticket sale. The answer is because StubHub pay them lots of money as part of their 'partnership'. And the reason StubHub pay Matchroom all this money is to legitimise what is happening with the resale tickets; which is fans being royally screwed over. And of course this is combined with normal reasons companies sponsor sporting events. You'll see AJ tickets that were initially sold for £100, then being sold for £400 on StubHub's resale site. StubHub will be making a cool £100 each time, and the tout will have made £200 profit (after the initial £100 went to Matchroom).
I'll also mention that some people think that Matchroom give StubHub tickets to put straight onto their resale platform, without ever giving anyone a chance to buy them from the initial sale at face value. Of course this would be massive profit for Matchroom and StubHub. I don't believe it myself, but I can see why others do.
B But surely only a massive idiot or fanboy would buy tickets which were once £100, would end up paying £400 for it... That’s such a amateurish method of ripping people off. I thought someone like Hearn could come up with more smart and innovative ways to mug the plebs off. Disappointed with Hearn to be honest
