Reports of $5,000 tickets for Bruce Springsteen’s upcoming tour have led a New Jersey congressman to demand Live Nation Entertainment Inc. explain its “exorbitant” markups and secretive pricing practices that “rip off” consumers.
(Bloomberg) — Reports of $5,000 tickets for Bruce Springsteen’s upcoming tour have led a New Jersey congressman to demand Live Nation Entertainment Inc. explain its “exorbitant” markups and secretive pricing practices that “rip off” consumers.
“I write on behalf of my constituents and fans across the country that are excited for Bruce Springsteen and The E Street Band’s 2023 tour,” Democratic Representative Bill Pascrell said in a letter Wednesday to Michael Rapino, Live Nation’s president and chief executive officer. “Hard-working Americans who are fans of Bruce and other popular entertainers should have the ability to enjoy live entertainment without ticket-sales practices that rip off consumers.”
Pascrell, who chairs the House Ways and Means Oversight Subcommittee, was an early critic of the 2010 merger between Live Nation, the world’s largest concert promoter, and Ticketmaster, the biggest ticket provider. In March, he called on the Federal Trade Commission and the Justice Department to break up what he has labeled a monopoly.
Pricey Springsteen tickets strike a personal chord in and around Pascrell’s northern New Jersey district, where the Boss is considered a home-state hero and a champion for the working class. Pascrell said he has heard some fans are paying $5,000 a ticket.
In his letter Wednesday, Pascrell alleged that the high prices are a direct result of the company’s “market-based pricing” known as the “Official Platinum Seats” program. While the company has said the system allows performers and event organizers to fairly determine the “true market value” of tickets, it has resulted in fans paying exorbitant prices, Pascrell wrote.
Pascrell said he wants details of the policies and practices the company has put in place for the Springsteen tour “to help fans better understand the frustratingly opaque process that leads to such high prices.”
Representatives for Springsteen did not immediately respond to requests for comment.
In a response last month to the New York Times, Springsteen’s manager, Jon Landau, said prices averaged in the mid-$200 range and were comparable to what other artists of his stature charge.
A Ticketmaster spokesperson said in an email that, by and large, 18% of Springsteen’s tour tickets in the US sold for less than $99, while 1% of tickets sold for more than $1,000.
Pascrell specifically asked Live Nation whether a price ceiling on the cost of Springsteen tickets was ever put in place; if there are restrictions on purchasing a single ticket; how many tickets have not been made available to the general public; whether the company informs customers how many tickets will be available for sale; and how tickets will be priced.
Pascrell also has sponsored legislation named for Springsteen, the BOSS Act, which would impose more transparency and protections for consumers who choose to use the secondary market to purchase tickets.
(Updates with Ticketmaster response, in ninth paragraph)
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