Scalpers who bought up thousands of tickets for Travis Scott’s upcoming ‘Circus Maximus’ tour overestimated the demand, leading to a liquidity crisis in the market. The tickets for the tour went on sale in August and were tipped to sell out fast when it was announced that the string of shows would be Scott’s first headline run since the Astroworld tragedy in 2021.
The original face value of the tickets was at least $61.50, but StubHub now sells the tickets between $10 and $20 for sold-out shows in different US cities. The discounts are a significant drop in price that has plunged resale tickets’ worth after the oversale. This overestimated demand was part of a bet placed by PFS Buyers Club, a site that offers exclusive members the chance to buy rare coins, with a recent pivot to concert tickets. This led members to buy tickets to Scott’s tour, according to emails seen by the outlet, and they now stand to lose substantially on their investment.
The IRS recently made strides to crack down on ticket touters in the US as part of the American Rescue Plan Act, with the introduction of a new law that would tax anyone making more than $600 per year through websites like StubHub and Ticketmaster. This is a significant move towards discouraging touts from making a profit from live art events.
In the past, Viagogo was accused of selling the majority of festival tickets through just three sellers. Each made between £730,000 and £1.7 million. This accusation was published last year and pointed out the issues with people trying to profit from ticket resale, especially when limited tickets are available. It further called into question who is ultimately in control and responsible for the sale and distribution of such tickets.
In conclusion, the oversale of tickets by scalpers is causing a liquidity crisis in the market, leading to a significant drop in prices of resale tickets for Travis Scott’s ‘Circus Maximus’ tour. This oversale may lead members to lose substantially on their investments. It is crucial to discourage ticket touters from profiting from live art events. This accusation against Viagogo calls into question who should be held responsibility for the fair sale and distribution of such tickets
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