Expanding technology and resale options were supposed to make obtaining tickets to sporting events easier than ever, but instead it’s become a hellscape. Scalpers dominate online platforms, ensuring that desirable events sell out immediately, causing local sports fans to miss out unless they’re willing to pay exorbitant prices for fear of missing out.

It’s now been revealed that one of the biggest stakeholders in online ticket sales is helping fund the very people ruining ticket sales for sports fans. An investigative report by the CBC uncovered information inside StubHub’s IPO filing from last November, which revealed that CEO Eric Baker also runs a hedge fund which scalps tickets, and provides funding to scalpers.

When asked for comment, StubHub reiterated its public-facing comment that the company doesn’t own or hold any tickets itself.

“StubHub does not own, possess, or sell tickets. We are a technology platform that connects independent buyers and sellers. (Think: eBay).”

This comment conveniently ignores that some of these “independent buyers” are being directly aided by the CEO of the company. Of course, the devil is in the details. Nobody is accusing StubHub of owning the tickets for their own sale, but it’s now clear that the top of the company is heavily invested in inflating its own marketplace. We discussed this fundamental issue late in the NBA and NHL playoffs, with how reselling sites like StubHub have a vested interest in scalpers, because their percentage-based resale fees are better for the company when event tickets soar — while also giving them multiple bites of the apple if the tickets are sold multiple times on the platform.

Baker, the StubHub CEO, reportedly is a large stakeholder in “Andro Capital,” a hedge fund based out of Los Angeles, which offers loan funding to large scale ticket purchasing operates which have the express purpose of buying tickets and reselling them for profit on platforms like StubHub.

Filing documents for Andro Capital show the hedge fund was formed in March of 2024, 18 months before StubHub announced it was going public in an IPO filing. In that filing to the SEC StubHub revealed its deep relationship with Andro, including this key detail from 2024:

On April 15, 2024, as part of our ongoing relationship with Andro, we entered into an agreement with the Andro Fund under which we agreed to cover certain costs incurred by Andro in connection with ticket management services.

StubHub was not required to divulge the totality of this agreement with Andro Fund, but having the company “cover certain costs incurred” raises mammoth red flags. That theoretically means that the hedge fund could have waived reselling feels on the seller side of the transaction, thereby incentivizing the fund to scalping operations. In short, the business flow could look like this:

1. A scalping group has capital to buy massive amounts of tickets
2. Rather than invest themselves, it’s better to invest their money in Andro to do the buying, because they have an agreement with StubHub to cover some of their expenses
3. Andro profits off the inflated ticket sales
4. StubHub benefits through massively inflated prices, which they profit off through buyer fees

That’s not all. The filing also lists “Colloquy LLC,” a subsidiary of Andro Capital, which serves as a loan servicing arm for tickets sellers — offering financing to mass buy tickets, which they resell on StubHub directly.

Under the terms of the Program Agreement, we refer certain of our sellers to Colloquy for the opportunity to enter into separate financing arrangements with Colloquy. Under such arrangements, it is anticipated that Colloquy may provide short-term financing to sellers based on those sellers’ existing and/or future expected proceeds generated through ticket sales on our platform.

Not only is Andro Capital its own ticket buyer, but it also runs an arm of the company that gives funding to sellers, based on referrals from StubHub itself. Essentially, the entire scalping business is fully intertwined with StubHub, from the CEO being involved in a large-scale seller AND offering funding to sellers.

The only person who loses out in this whole transaction are sports fans. The consumers who use the platform are being held hostage by ticket prices, which fundamentally wouldn’t be inflated to the same level without the input of StubHub. This is all legal from the SEC’s perspective due to a lack of oversight when it comes to hedge funds. There are few other industries in which a publicly traded company could be legally allowed to price fix to the level that is happening on StubHub, while trying to pretend with its public face that it’s just a platform for fans to sell to other fans.

There should be an immediate investigation into ticket pricing, as well as outlawing the kinds of predatory practices designed to inflate the wealth of StubHub and Andro Capital at the expense of consumers.