
Following new allegations that House of Blues Concerts knowingly sold concert tickets to brokers in three cities, the concert promoter's parent company House of Blues Entertainment said on Saturday that it will review its ticket subscription programs through which the brokers allegedly obtained the tickets.
HOB Entertainment promised to undertake a "comprehensive review" of the programs, responding to allegations published in a story in yesterday's (12/19) Denver Post. The story revealed that HOB Concerts sold brokers premium seats from major venues in Denver, San Diego and Dallas.
The Post learned that brokers paid doubled seat fees--totaling $54,000 to $130,000--to purchase prime seats that would normally have gone to season ticket holders. The number of seats that HOB Concerts sold to brokers in each city ranged from 36 at San Diego's Coors Amphitheatre to 70 at Dallas' Starplex Amphitheatre. The Post based its information on statements made by ex-House of Blues employees, a letter from HOB's corporate office detailing how tickets would be sold to brokers, and an examination of contracts with brokers.
Greg Trojan, president and CEO of HOB Entertainment, said that HOB "discourage[s] the reselling of tickets on any level." But former HOB Concerts employees and other sources told the Post that HOB Concerts president Jay Marciano and executive director of corporate partnerships Daniel Segal conceived of and directed the practice of selling prime seats to brokers. On Monday (12/20), Segal had no comment, and Marciano was on vacation and was unavailable for comment.
Some areas of the country prohibit the sale of tickets to brokers or cap the amount which a buyer may pay for a resale ticket. But other areas do not restrict the practice.
HOB's alleged dealings with brokers have caused repercussions among major acts' tour managers, however. After learning that Denver's HOB Concerts may have channeled as many as 1,400 Backstreet Boys tickets to brokers, the group's management company the Firm did not use HOB to book the group's early 2000 tour. Rock band Pearl Jam and its management have stated they will not book shows in Colorado with HOB, according to the Rocky Mountain News.