NEWARK, NJ (CelebrityAccess MediaWire) — Public hue and cry over ticketing practices was again renewed last week, after a report in the The Star-Ledger of Newark cited data from New Jersey’s Open Public Records Act. The report indicated that as many as 12 percent of all tickets for May 21st Sprinsteen concert at the Izod Center in East Rutherford, N.J.— including more than 90 percent of "the best seats in the house" — were withheld from public sale and instead went to Springsteen, his label and others.
The ticket sales had led to earlier controversy when they sold out almost immediately after going on-sale on Ticketmaster's website. Users were instead directed to a Ticketmaster-owned secondary ticket market website where the tickets were already available at prices much higher than the face value of the ticket. Subsequent investigations revealed that many of the tickets on the secondary site had been held by industry insiders and the Star-Ledger article led to speculation from some, including Ticketmaster Chairman Barry Diller that Sprinsteen may have been one of those insiders.
Now Jon Landau, Bruce Sprinsteen's manager, has responded to the controversy with a lengthy post on the Boss's website in which he refutes these claims, pointing to previous testimony and letters from Diller that would appear to fly contrary to the chairman's current claims.
For your information and edification, we've reprinted the entire text of Mr. Laundau's post below – CelebrityAccess Staff Writers
AN UPDATE ON TICKETING ISSUES FROM JON LANDAU June 22
Somehow, a new flurry of interest has been created around Thrill Hill's ticket holds for the recent Izod Center shows. These are the same shows that became such a subject of controversy when they went on sale on February 2nd. The new theory is that Bruce's holds were the problem on February 2nd, and not Ticketmaster's already acknowledged failures on that day. But the truth is that Bruce's holds had nothing to do at all with the breakdown of Ticketmaster's system.
These are the undisputed facts about February 2nd. On that morning, when our fans went to buy their Bruce and Band tickets for the face value of $95, they were in many cases immediately linked to Ticketmaster's wholly owned ticket reselling company TicketsNow, where prices were many times higher than $95. We call this "bait and switch." As a result, an undetermined but large amount of money flowed into TicketsNow (and eventually Ticketmaster) even though there were still tickets at normal prices yet to be made available on Ticketmaster. We perceived this to have been a major abuse of our fans, complained about it mightily, and added that because of behavior like this, the pending merger of the number one ticketing company and number one management company (both owned by Ticketmaster) with the number one venue owner and operator (Live Nation) might not be such a hot idea.
How do we know that all this is true?
1. On February 2nd, when the ticket fiasco occurred, Ticketmaster's CEO wrote to Bruce, myself, and our fans to generously apologize, which apology we promptly and graciously posted on our site. The letter stated that the problem was the product of an inexplicable "glitch."
2. The volume of complaints received by New Jersey Attorney General Anne Milgram exceeded anything ever experienced before and she ultimately secured a consent degree from Ticketmaster, in which they promised that some of their practices ("glitches") with regard to its sister company TicketsNow will never be repeated.
3. The CEO of Ticketmaster openly testified as to their responsibility for these "glitches" in front of Committees of Congress.
Based on all of the above, we can safely conclude that on February 2nd, Ticketmaster transferred legitimate requests for tickets at face value over to their TicketsNow site, where they could charge people hundreds and hundreds more dollars for the same ticket. The amount of additional profit generated by scalper type prices through this now famous "glitch" remains unknown. Whether this was merely an extremely profitable "glitch" for Ticketmaster/TicketsNow or something else, we have no way of knowing.
Last Sunday, June 14, the Newark Star Ledger ran an article entitled "Springsteen withheld best tickets from the public at NJ concert, records show." This is the same article that the Star Ledger runs whenever we do a few indoor shows in New Jersey. It suggested that we were in someway responsible for the Ticketmaster/TicketsNow problem. On Thursday, June 18, Hits Magazine ran a summary of this article, On Friday, June 19, Ticketmaster's Chairman attacked Bruce personally in the New York Post, in an article called "Ticket Blitzkrieg." In this article, Ticketmaster's Chairman deploys by implication Ticketmaster's new line: despite their apology, despite the consent decree with Attorney General Milgram, and despite their testimony in Congress, the ticket catastrophe was actually Bruce's fault.
Of course, the only thing wrong with the Chairman's spin is that it's flatly untrue. He is merely using the time honored tradition of blowing smoke to distract attention away from Ticketmaster's already acknowledged responsibility for their "glitches" on February 2nd, the on-sale date of the two Izod Center shows.
Now lets talk a little about Thrill Hill's ticket practices. Perhaps the first thing to be said is that when we play New Jersey, our fans know that we are usually going to do more than two indoor shows in order to ensure, among other things, that during the course of a tour, Springsteen tickets will be plentiful so as many fans as possible will have a chance to get great seats (hence the five upcoming shows at Giants Stadium.) As our fans also know, we have kept all of our tickets under $100 and do all that we can to ensure that as many as possible are sold at face value.
Yes, we do hold significant numbers of tickets when we play New Jersey, New York and Los Angeles, as does every arena headliner. These holds are used by Bruce, his band members, and longtime members of his extended organization, their families and close relations; by the record label for their staff, for reviewers, and for radio stations; by charities who are provided with tickets for fund raising purposes, such as special auctions; for service people who help us on a year-round basis; and for other similar purposes. Unlike some Ticketmaster managed artists, no tickets are held for high dollar resale on TicketsNow, or through any other means.
Where are the Bruce holds? The 2,000 to 3,500 tickets closest to the stage are on the floor and more than 95% of them go to the public, making the basic premise of the Star Ledger headline inaccurate. Secondly, with regard to seats held in the best sections on either side, we always blend guest seats with fan seats so that there are never any sections consisting entirely of guest seats.
In addition, it is well known that we sometimes release a significant number of excellent tickets on the day of the show at the box office, which can only be bought with direct entrance to the venue. It's known as the "drop." Many think that is done on purpose to help combat the scalpers who prey on fans at the last minute. That is a good thought.
(Also, in connection with the Izod Center shows in particular, we released some of our holds to Attorney General Milgram to go into the lottery she created to help deal with people who were penalized by the Ticketmaster/TicketsNow "glitch" on February 2nd.)
Those are our ticket practices, as they have evolved over more than 30 years of experience. Does anyone seriously imagine that any element of these practices caused Ticketmaster to redirect ticket requests to TicketsNow for the Izod Center shows? What would our incentive have been? It's not we who earned vastly larger sums when fans paid way over the face value of the tickets. It was Ticketmaster/TicketsNow.
Final thoughts: We have no interest in having an ongoing conflict with Ticketmaster/TicketsNow or anyone else. That has not been part of our history. And it is generally not our purpose to spend time on this site on matters of this kind. But we do get upset when we see fans being taken advantage of, as they were on February 2nd. So, when that stuff stops happening (and the Ticketmaster/TicketsNow problems surrounding our recent show in Washington D.C. shows that these issues are far from resolved) we will stop complaining. And when the facts cease to be misrepresented, we will stop explaining.