March Madness spurs online ticket sales
Tickets to the men's and women's basketball tournaments are selling for up to 10 times their face values on eBay and other online auction sites.
Tickets to the men's and women's basketball tournaments are selling for up to 10 times their face values on eBay and other online auction sites.
Depending on whom you ask, these cybersales may skirt local laws in Indianapolis and Philadelphia, where the games are played. Both cities specifically prohibit reselling Final Four tickets.
eBay argues that the auctions are legal if both the buyer and the seller are not located in those cities. But city officials in Indianapolis say it's still illegal, regardless of where the sale occurs.
Despite the legal muddle and the astronomical prices, there are plenty of buyers.
An 18-year-old freshman at Indiana University, for instance, paid $1,375 for a pair of men's Final Four tickets on eBay earlier this month. The tickets, which include entrance to both of the semifinal games and the NCAA basketball finals, have a combined face value of $200.
"I'm a huge college basketball fan, and this is a once-in-a-lifetime opportunity, so paying that much is all right in this instance," the freshman said. "I do wish it was a little cheaper, but I'm sure it's going to be worth the experience."
| Bidding wars Scalpers on eBay are selling $40-$50 NCAA Final Four tickets for large amounts. Here are some of the prices found for a ticket package that includes two tickets to three games: | |
| Event | Current bidding prices |
| NCAA Men's Basketball | $2,125
$1,200 $750 $610 |
| NCAA Women's Basketball | $500
$400 |
| Source: eBay | |
Net users have been auctioning tickets for events such as Broadway plays and the Super Bowl for some time, analysts say.
But someday, organizers and ticket sellers that currently are paid only the face value of tickets, may themselves tap into the online market to get top price and to ensure a full house at undersold events.
"I know that ticket companies are very interested in ways to improve their yields to events," said analyst Martin DeBono of Gomez Advisors. "Auctions are one way for them to get the maximum price for their events."
But at least one thing stands between ticket sellers and big online profits: the law. Many states and cities forbid ticket scalping online or off, and sites such as eBay have taken steps to limit such sales.
Indianapolis, where the men's Final Four will be played, forbids selling tournament tickets for more than $10 higher than the ticket face value. eBay says that it will close auctions in which the ticket seller or any bidder is located in the city, but it otherwise will permit them.
However, the city's position is that scalping tickets violates its ordinance, regardless of where the buyer or seller of the tickets is located, said Beth White, an attorney with the city of Indianapolis. But out-of-state residents who break the ordinance by buying tickets through online auctions may have little to fear from the city; although a violation is subject to fines, it is not technically a crime, White said.
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Meanwhile, the women's Final Four will be held in Philadelphia. Pennsylvania law prohibits selling tickets for more than 25 percent above their face values, and eBay requires sellers to notify bidders that they won't accept bids for more than that amount.
Legal obstacles plus the local and time-specific nature of events will limit the number of tickets offered for auction, Jupiter Communications analyst Mike May said.
"While millions of people are on eBay at any one time, there's only a small fraction that will be willing to go to Indianapolis on short notice," May said.
The men play April 1 and April 3; the women play March 31 and April 2.