RISKY BUSINESS
Many ticket broker companies have gone under from such short-selling practices, which underscore the risk associated with buying tickets to high-demand sporting events on the secondary market.
That was the case for now-defunct Chicago-based company Ticket Reserve, which sold options on game tickets that were coming from resellers. In 2009, it got caught up when two sellers falsely claimed to be selling 250 Super Bowl tickets,
which led to a class action lawsuit that brought down the company.
Its founder, Rick Harmon, returned to the market with a similar concept in Lake Forest-based
Forward Market Media, which partners with events themselves to sell reservations for face-value tickets. That product, known as TeamTix, is used for high-demand sporting events like the College Football Playoff and the Big Ten men's basketball tournament, which back the reservations with their own ticket inventory.
But the company still licenses its TeamTix technology platform to resellers, including Ludus Tours, which was one of the short-selling brokers rocked by the Super Bowl market. The onus to provide the tickets is on the reseller itself, according to a Forward Market Media spokeswoman.
Harmon was unavailable for comment today, but the company is currently reviewing its practice of evaluating worthy users of its ticket platform.