StubHub

StubHub
Company type	Subsidiary
Industry	Ticket exchange; Ticket resale;
Founded	2000; 26 years ago
Founders	Eric Baker; Jeff Fluhr;
Headquarters	New York, United States
Area served	Template:Flat list
Key people	Eric Baker CEO; Nayaab Islam, President;
Parent	StubHub Holdings
Website	stubhub.com

StubHub operates as a U.S.-based platform specializing in ticket exchanges and resales, connecting purchasers and sellers for events including sports, concerts, theater performances, and other live entertainment. By 2015, it had established itself as the leading global ticket marketplace, attracting over 16 million distinct visitors and facilitating access to nearly 10 million live events each month.

Established in 2000 by Eric Baker and Jeff Fluhr, the company was acquired by eBay in 2007 for $310 million, and subsequently purchased by Viagogo in 2020.

2000–2007

StubHub originated as a project at Stanford Business School, initiated by founders Baker and Fluhr, both of whom had backgrounds in investment banking. Among its early ventures was a collaboration with the Seattle Mariners in 2001. Initially designed to serve as a ticket transaction system supporting other websites, by 2003 the firm pivoted towards selling tickets directly through its own online platform. A leadership divergence occurred in 2005 when Baker departed but maintained a 10% stake in the company.

In 2005, StubHub secured funding between $10 million and $25 million from Pequot Ventures (now FirstMark Capital) and reported revenues of $50 million with positive cash flow, exceeding $200 million in total sales. The following year, it was ranked eighth among Inc. magazine's fastest-growing private companies.

The acquisition by eBay was publicized in January 2007 for $310 million. That year, StubHub processed five million transactions—surpassing the combined total of all prior years—and expanded its workforce to 350 employees. Following the acquisition, Fluhr exited the company and Chris Tsakalakis stepped into the CEO position.

2008–2013

By 2008, StubHub had evolved into a business generating $5 billion annually, with a significant portion of growth driven by music-related ticket sales. The platform attracted approximately 2.1 million visitors each month and achieved more than $100 million in yearly revenue. In 2009, transaction volume rose by 65% compared to the previous year, alongside a 40% increase in revenue, solidifying StubHub's status as the foremost secondary-market ticket reseller within the United States. Nevertheless, some event tickets, such as those for the Masters Tournament, experienced notable price declines.

By May 2011, StubHub had established partnerships with 62 official entities, including prominent sports teams like the Boston Red Sox and organizations such as Ultimate Fighting Championship. The platform enabled ticket exchanges without managing physical tickets directly. During 2011 and 2012, StubHub broadened its presence in digital markets by launching mobile applications compatible with Microsoft Windows Phone, iOS, BlackBerry, and Android devices. These apps incorporated features like interactive venue maps and integration with Apple Passbook to improve user engagement.

The company's expansion into the UK market commenced with a beta website launch in December 2011 followed by a full rollout in March 2012; plans also included opening physical retail locations near major event venues. At that time, professional brokers accounted for roughly 35% of tickets sold on the platform, with individual sellers comprising the remainder.

In 2013, StubHub introduced a specialized application tailored for South by Southwest events to facilitate ticket purchasing processes. It also initiated "The Rising Stars program," which awarded grants ranging from $25,000 to $100,000 to community organizations dedicated to youth development through sports and arts programs. Furthermore, StubHub donated $1 million to the Robin Hood Relief Fund after Hurricane Sandy by channeling proceeds from ticket sales linked to the 12-12-12 Concert for Sandy Relief. Despite facing criticism from concert promoters regarding resale prices exceeding face value, StubHub highlighted its charitable contributions derived from event-related transactions.

2014–2022

On November 4, 2014, Chris Tsakalakis stepped down as president of StubHub and was succeeded by Scott Cutler. That same year, Jonah Freedman took on the role of editor-in-chief, aligning with StubHub’s ambition to establish itself as a premier platform for event discovery and planning. The company also enhanced its mobile application and integrated tailored content in collaboration with ESPN to improve the user experience. By May 2015, monthly unique visitors to StubHub had surpassed 16 million.

In September 2015, StubHub modified its pricing presentation, offering customers the option to view lower base prices with fees added at checkout or to see all fees included upfront. Since launching benefit concerts in 2013, the company had also engaged in philanthropic efforts, including a partnership with The Mr. Holland's Opus Foundation by 2015.

By 2016, StubHub was operating across the United States, Canada, the United Kingdom, Mexico, and Germany, holding the title of the largest ticket resale marketplace globally with revenues reaching $940 million. That year, the UK’s Competition and Markets Authority (CMA) conducted a review of major secondary ticketing platforms such as StubHub, resulting in regulatory requirements that needed to be fulfilled by 2018.

The US Senate enacted the Better Online Ticket Sales (BOTS) Act in 2016 to combat automated ticket scalping practices; StubHub publicly endorsed this legislation as a measure to safeguard market fairness.

In 2018, Sukhinder Singh Cassidy succeeded Cutler as president, bringing renewed strategic focus on expanding the business. By the end of 2019, StubHub reported ticket sales totaling $4.75 billion and fees amounting to $1.1 billion across 44 countries, with the majority concentrated in the United States.

On November 25, 2019, Viagogo—founded by Eric Baker after his departure from StubHub—announced its intention to acquire StubHub for $4.05 billion. This acquisition created StubHub Holdings, merging two leading entities in the ticket resale sector. The transaction was completed in September 2021 following CMA approval, with StubHub divesting its operations outside North America to Digital Fuel Capital LLC.

Post-acquisition, StubHub transitioned back into private ownership after being publicly traded for 13 years. In July 2022, Nayaab Islam was appointed president amid strategic decisions to close offices in San Francisco and Shanghai as part of global operational streamlining.

StubHub IPO

In January 2022, StubHub Holdings submitted filings with the U.S. Securities and Exchange Commission for a potential IPO, with Bloomberg estimating a valuation near $13 billion. However, this public offering was subsequently postponed. By April 2024, CNBC reported that StubHub aimed for a $16.5 billion valuation for an IPO launch planned for fall 2024; yet market volatility caused further delays. In March 2025, IPO plans resurfaced but were again deferred due to unfavorable financial market conditions.

Operations

StubHub operates an online marketplace facilitating both ticket resale and direct ticket distribution on behalf of event organizers within live entertainment sectors. It provides users with resources for event discovery and planning.

Often described as a "clearinghouse for ticket sales," StubHub functions as an intermediary connecting buyers and sellers while generating revenue through transaction commissions. It commands dominance over the $6 billion live-event ticket resale industry by enabling sellers to earn profits without engaging in auctions. Many sellers offer tickets that are challenging to obtain through conventional means; however, more than half of transactions occur at or below face value. The founder has highlighted that promoters typically pre-allocate most seats to fan clubs, credit card holders, and brokers prior to public sales, contributing to market imbalances.

Ticket pricing is determined by sellers across various categories such as sports events, concerts, theater performances, Cirque du Soleil shows, classical music concerts, festivals, and others. As of 2019, StubHub applied fees to both buyers and sellers—fees usually revealed late during checkout—a practice justified as industry standard but criticized for lacking transparency. In 2014, the company briefly introduced "all-in" pricing showing total costs upfront but reverted in 2015 due to consumer confusion and competitive challenges. During a congressional hearing in 2020, StubHub’s general counsel advocated for federal regulations mandating upfront disclosure of fees.

While there is no cap on resale prices set by StubHub, buyers are provided with data on comparable sales. Elevated resale prices have faced criticism for restricting access by average consumers; for instance, Super Bowl tickets averaged $2,500 on the platform in 2009. The company offers guarantees such as refunds or replacements for invalid tickets and was among the first platforms to implement PayPal’s API to expedite payments to sellers.

StubHub maintains headquarters and offices across Los Angeles, Irvine, New York City, Salt Lake City, Ireland, and Switzerland. As of 2022, StubHub Holdings employed roughly 650 full-time employees—with approximately one-third based at Viagogo. Its principal competitors include Ticketmaster, Vivid Seats, and SeatGeek.

Legislation and regulation

In 2006, controversies arose involving StubHub related to the resale of season tickets for the New England Patriots and New York Yankees. During this period, 38 states in the U.S. allowed offsite ticket reselling without restriction, whereas 12 states enforced regulations such as mandatory registration and limits on price markups. StubHub, together with Ticketmaster and TicketNetwork, actively campaigned to overturn stringent anti-scalping statutes. In Florida, StubHub contributed more than $6,500 to lawmakers advocating for reforms to the state's longstanding anti-scalping regulations. Critics contended that the proposed legislation would drive up prices and negatively impact their market share. Conversely, the bill’s proponent argued it would bring ticketing practices into alignment with modern standards. Ultimately, the law was enacted in June 2006, resulting in 35 states having no limitations on ticket resale.

New England Patriots lawsuit

In 2006, more than 100 New York Yankees season-ticket holders suspected of reselling their seats via StubHub were prohibited from purchasing playoff tickets and tickets for the 2007 season. StubHub condemned this action as restricting fan access. That same year, the New England Patriots initiated legal action against StubHub to prevent ticket resales within Massachusetts, accusing the platform of facilitating sales of counterfeit or invalid tickets. In 2007, a court permitted StubHub’s countersuit against the Patriots to advance, alleging monopolistic practices and unfair competition. The court mandated that StubHub disclose a list of Patriots season ticket holders using its service, while the Patriots threatened to revoke their seating privileges. Following eBay's acquisition of StubHub, the parties reached a settlement.

New York Yankees lawsuit

In December 2012, the New York Yankees, Los Angeles Angels, and Chicago Cubs opted not to renew a five-year agreement with StubHub that had been arranged by MLB Advanced Media; subsequently, the Cubs reentered the partnership. The Yankees filed a lawsuit against StubHub over its ticket sales outlet located near Yankee Stadium, asserting it violated New York state law prohibiting ticket resale within 1,500 feet of sports venues. StubHub defended its operation by stating it functioned solely as a printing station for tickets purchased online. This dispute was resolved through a settlement in 2013. Around this time, eBay began incorporating StubHub listings into its UK website and phased out certain ticket categories to encourage users toward StubHub. A revised pricing model was launched in April 2013 featuring upfront disclosure of fees. Following the cancellation of the Spice Girls musical Viva Forever! in May 2013, StubHub UK experienced a 220% increase in ticket search activity as fans sought remaining performances.

Scalping

Among StubHub’s leading sellers in 2017 was Julien Lavallée, a 30-year-old entrepreneur from Montreal who scaled his ticket resale enterprise by employing methods that exploited platform mechanisms and restricted availability for many fans. Leaked documents revealed his reliance on StubHub, Vivid Seats, and Ticketmaster as principal outlets for scalped tickets. His company, I Want Ticket Inc., registered in the British Isle of Man, listed tickets through StubHub UK.

In that year, UK authorities introduced legislation aimed at curbing automated software use for bulk ticket purchases. The Competition and Markets Authority (CMA) requested detailed seller information from major platforms including StubHub. When StubHub declined to comply voluntarily, CMA secured a warrant and conducted a raid on StubHub’s London office, seizing documents related to extensive ticket touting operations. As of November 2017, no formal charges had been brought against StubHub.

Lavallée drew scrutiny from UK regulators after acquiring control over 310 seats for three Adele concerts in London during 2016, generating revenue exceeding $50,000 within half an hour. Canadian media coverage underscored concerns that StubHub’s business framework might unintentionally encourage high-volume resellers and bot usage, sparking debate about its influence on the secondary ticket marketplace.

Bait-and-switch pricing

In July 2024, the Attorney General of the District of Columbia initiated legal action against StubHub, accusing the company of employing deceptive "bait-and-switch" pricing methods.

Better Business Bureau accreditation

StubHub currently holds an F rating from the Better Business Bureau, attributed to a recurring pattern of customer complaints, and it does not possess BBB accreditation.

Partnerships

StubHub has established strategic alliances with prominent corporations such as Apple Inc, Spotify, Amazon.com, and Uber, which have expanded its market presence and enhanced the overall customer experience.

Sports

StubHub plays a significant role in sports sponsorship and ticket distribution. Since 2007, it has maintained an exclusive partnership with Major League Baseball (MLB), sharing commission revenues from season ticket sales. By 2012, nearly half of MLB teams had entered into agreements with StubHub, although some franchises, including the Los Angeles Angels, chose not to renew their contracts. The company also supports 35 collegiate athletic programs and collaborates with influential entities like ESPN, Tickets.com, IMG, as well as venues such as Staples Center and South by Southwest.

In 2013, StubHub obtained the naming rights for the Los Angeles Galaxy stadium, which was subsequently renamed the StubHub Center. In a landmark move in 2016, it became the inaugural corporate sponsor for an NBA jersey through a three-year partnership with the Philadelphia 76ers, setting a precedent in sports marketing.

While StubHub’s platform permits ticket sales for teams without official partnerships, availability of electronic tickets may be restricted. Every transaction is protected under StubHub’s fan guarantee.

Despite its prominence in the market, StubHub has encountered criticism from some sports executives who contend that the company does not contribute directly to sports product development. Nevertheless, certain industry figures acknowledge its contribution to broadening ticket accessibility and generating additional revenue channels.

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