Cavs File Antitrust Suit Against Ticketmaster

The Cleveland Cavaliers sued Ticketmaster in federal court on Monday charging it with violating antitrust law by prohibiting the Cavs from using its corporate cousin Flash Seats to help its season ticketholders resell their tickets. Flash Seats is a web-based ticket reseller under common ownership with the Cavs, both owned by Quicken Loans founder, Dan Gilbert.
The Cavs allege that Ticketmaster is engaged in an "ongoing campaign to utilize its substantial market power . . . to exclude actual and potential competition." At issue is a clause in Ticketmaster's contract with the Cavs requiring season ticketholders who wish to resell their tickets to use Ticketmaster's own resale operation TicketExchange.
Ticketmaster had earlier filed suit to enforce this clause against the Cavs after the Cavs used Flash Seats during the last month of the season. Flash Seats, which is also a plaintiff in yesterday's filing, has attempted to expand to other teams but has been denied by Ticketmaster at every turn. That is the basis of the current suit and depending on the level of proof they can offer, probably a fairly good basis for a claim.
Ticketmaster is the dominant player in the market and if it using that market power to extend its reach to its resale affiliate and excluding unfairly the ability of anyone else to compete, then it will likely have some difficulties with this case. While I'm no antitrust expert, it strikes me as a pretty fair argument of abusing market position to freeze out competition. I think the Cavs and Flash Seats have a good shot of winning.
Labels: antitrust, Cleveland Cavaliers, Flash Seats, nba, professional basketball, Ticketmaster
























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