StubHub CEO Eric Baker is getting pressed for answers on the executive’s personal ticket broker business, with House Democrats saying Thursday that the dynamic “raises concerns of preferential treatment, abusive practices, and bad deals for concertgoers, sports enthusiasts, artists, and fans.”
Robert Garcia, ranking member of the Committee on Oversight and Government Reform, sent Baker a letter on Thursday, demanding answers regarding Baker’s work as CEO of the ticket resale platform and as managing director of Andro Capital Management, a ticket resale firm that lists tickets on secondary platforms including StubHub. StubHub had disclosed the relationship in regulatory filings last year as the company went public, though it had only garnered controversy earlier this year following a report from CBC.
The House Democrats had first announced an investigation on the matter back in July, alleging that Baker potentially “engaged in market manipulation and self-dealing.”
“Eric Baker appears to be using his positions at Andro Capital and StubHub to profit, potentially at the expense of customers, fans, and artists,” Garcia said in a statement Thursday. “This apparent conflict of interest and potential grift is unacceptable. We are demanding answers.”
In the letter, Garcia asked for descriptions on Andro Capital’s relationship with StubHub, including “cash flow, financing agreements, fees, and related services exchanged between Andro Capital and StubHub.” He gave Baker a deadline of November 5 to respond.
A representative for StubHub didn’t immediately respond to request for comment, though the company had previously told THR that, “Eric’s investment in Andro Capital has been disclosed publicly. Andro Capital is a separate company and is one of many vendors we use. StubHub, like many companies, works with vendors to provide additional services for their customers, allowing the StubHub team to focus on its core business. This relationship with Andro Capital makes up only a small fraction of StubHub’s total revenue.”
The probe into StubHub comes as the company and the rest of the secondary ticketing business faces increasing government scrutiny, as fans continue to voice their frustrations over high ticket prices. This year, several states had introduced legislation to cap how much tickets are allowed to be re-sold for on the secondary market, a move celebrated by artists and concert promoters but heavily criticized by the resale firms, who’ve warned such legislation would further strengthen Ticketmaster’s monopoly on the business. StubHub itself had reported record-high lobbying spending in California to successfully kill a price cap bill in the Golden State, as THR reported earlier this year.
Other than the platforms themselves, ticket brokers are facing heavier scrutiny too. Last week, the DOJ and FTC announced a lawsuit against a ticket broker firm on claims the company had violated federal law to resell mass amounts of concert tickets for more than $120 million in profit.