Photo Credit: Rep. Robert Garcia / Instagram
Rep. Robert Garcia (D-CA) demands answers from StubHub CEO Eric Baker amid allegations of his hedge fund making millions in reselling tickets on the platform.
California Rep. Robert Garcia, Ranking Member of the Committee on Oversight and Government Reform, has demanded answers from Eric Baker, StubHub CEO and Managing Director of Andro Capital. The escalated inquiry follows allegations that Andro Capital purchases bulk tickets and resells them on StubHub, earning the hedge fund—and Baker—millions of dollars from StubHub.
Garcia’s letter is an escalation of the Oversight Committee’s ongoing investigation into the ticket resale market and the relationship between StubHub and Andro Capital and poses more questions regarding how Andro Capital bulk-purchasing tickets could impede fans buying and selling tickets to events.
“Eric Baker appears to be using his positions at Andro Capital and StubHub to profit, potentially at the expense of customers, fans, and artists. This apparent conflict of interest and potential grift is unacceptable. We are demanding answers,” said Rep. Garcia.
“Oversight Committee Democrats remain concerned with the fact that exorbitant ticket prices too often mean that attending a favorite concert, sports game, or event is too expensive for many Americans. Everyday consumers must compete against sophisticated scalpers who buy up tickets to resell them on third-party websites for a quick profit,” Garcia wrote in his letter to Eric Baker.
“Andro Capital Management (Andro Capital) is one of these bulk ticket purchasers, and your dual role as Managing Director of Andro Capital while also serving as Chief Executive Officer of the ticket resale platform StubHub raises concerns of preferential treatment, abusive practices, and bad deals for concertgoers, sports enthusiasts, artists, and fans.
As reported in StubHub’s securities filings, Andro Capital maintains a related party relationship with StubHub beyond that of an ordinary ticket broker. I request information about the role that Andro Capital plays in the ticket market and how the relationship between Andro Capital and StubHub may unfairly raise costs for consumers and limit profits for artists.”
Unlike Garcia’s initial inquiry over the summer, which specifically addressed Baker in his capacity as StubHub’s CEO, this request is directed at Baker as the managing director of Andro Capital. This shifts the focus toward Andro Capital’s own operations and financial arrangements, including how it acquires tickets, finances its inventory, and conducts business via Stubhub and possibly other secondary marketplaces.
Leave a Reply