California's proposed ticket resale cap bill, AB 1720, has been defeated in the Senate appropriations committee, sparking a heated debate in the music industry. The bill, introduced by state assembly member Matt Haney, aimed to cap concert ticket resale prices at 10% above the original price for smaller venues (3,000 capacity or lower). This proposal faced intense lobbying from ticket resale platforms, notably StubHub, which spent a record-breaking $3.4 million in lobbying expenses this year, including $2.6 million in the latest quarter. The company's stance is that more choice, flexibility, and access benefit fans, but critics argue that extreme markups by scalpers are a significant issue.
The bill's failure highlights the ongoing struggle between artists, venues, and fans against the power of ticket resale platforms. Haney, undeterred, vows to continue advocating for solutions, emphasizing the urgency of the problem. He argues that the bill would have addressed the predatory nature of ticket resale while still allowing individuals to recover their costs. This sentiment resonates with artists like Kid Rock and Noah Kahan, who have publicly supported such measures. Interestingly, the bill's scope was reduced to smaller venues, but even this limited scope faced strong opposition.
The success of similar bills in other states, such as Maine, Vermont, and Washington, D.C., as well as Massachusetts' recent move to include a price cap in its spending bill, suggests that the tide might be turning. However, the California bill's defeat underscores the challenges of implementing such regulations, especially in the face of substantial lobbying efforts. The debate over ticket resale caps is far from over, and the industry must grapple with the question of how to ensure fair access to live events while maintaining the financial viability of artists and venues.
