Introducing Ticket Price Caps Could Cost the UK Economy Over £180 Million Across Sports and Live Music Events

New economic analysis from Cebr shows the introduction of price caps by the Government risks empty seats, rising fraud, and a loss of consumer spending

LONDON--(BUSINESS WIRE)--As the Government considers imposing a cap on the resale prices of live event tickets, new modelling by the Centre for Economics and Business Research (Cebr) warns the move could backfire - including a potential £183 million hit to the UK economy, should 25% of the ticket holders who currently sell on resale platforms, instead decide to neither attend nor resell their ticket to an event.

The report highlights that a cap on ticket resale prices could reduce the number of tickets resold through regulated platforms, leading to more empty seats at events and greater risk for consumers. It also raises concerns that fans may be pushed toward unregulated resale channels—such as social media and informal platforms - where fraud is common and consumer protections are minimal or nonexistent.

Cebr research has shown that fans purchasing tickets through regulated resale platforms spend an average of £629 per seat on related items such as travel, accommodation, and food, supporting vital sectors including events, hospitality, and tourism. The research also calculated that with secondary ticketing underpinning £733 million* in annual business turnover and 7,736 full time employees, even a modest drop in resales could deliver a substantial shock to these industries.

The analysis outlines four key risks associated with imposing a price cap on resale tickets:

• Shift to unregulated sales: Buyers and sellers will turn to unofficial platforms with no consumer protections, introducing risks of fraud. Research conducted by Bradshaw Advisory comparing current ticket fraud in the UK, with Ireland and Victoria, Australia, where price caps have been introduced, saw the UK experiencing nearly four times lower ticketing fraud.
• Platform constraints and exit risks: Some resale platforms, especially those not involved in primary sales, could struggle to comply with price caps through the added complexity of verifying primary ticketing costs, reducing safe options
• Unsold inventory: Integrated platforms tend to introduce price floors and caps. Poorly calibrated caps and price floors could lead to tickets being left unsold altogether.
• Lower fan commitment to attend: If resale is capped at face value, fans who can no longer attend may not resell their ticket if they don’t deem the financial reimbursement worthy of their time to sell it. Therefore, tickets may not reach the fans who value them most - removing the chance for mutually beneficial exchanges and reducing overall efficiency.

Cebr warns that even a modest reduction in resale activity could have significant negative economic consequences for sectors that rely on event attendance and urges policymakers to carefully weigh the broader economic and consumer risks before implementing price restrictions.

The analysis also breaks down the potential impact by sector, with music events accounting for the majority of economic activity supported by secondary ticketing (£563 million in turnover), compared to £170 million for sports. Both sectors could face significant reductions under various scenarios of ticket underuse, with music seeing the greatest potential decline, should buyers allow tickets to go to waste.

Alongside the potential economic impact, Cebr’s findings also point to a broader consumer risk: an increase in fraud if ticket resales are pushed off regulated platforms and onto unlicensed channels. As highlighted in recent analysis from Bradshaw Advisory, limiting resale options could drive fans towards informal sales on social media or messaging apps - spaces where there is little to no buyer protection. The report highlighted that in both Ireland and Victoria, Australia, where price caps have been imposed, reported ticketing fraud is four times higher than the UK. Taylor Swift’s Eras Tour in Victoria, Australia is a real world example of the failure of price caps; $260,000 was reported to have been lost in scams by desperate fans trying to purchase tickets, as they sought tickets on non-regulated and underground sites. More recently, Lloyds Bank found that thousands of fans have fallen victim to ticket scams on social media for the Oasis reunion tour later this year, with the average victim losing £436 each.

Without access to robust and well-functioning resale markets, fans are left exposed to fake tickets, and financial loss, ultimately making the live event industry less accessible.

Professor Rob Wilson, Professor of Applied Sport Finance and sports business expert, commented:

“The research by Cebr highlights that even though an event could sell out, it doesn’t guarantee attendance. If primary buyers don’t feel the effort to resell matches the price, then fans who would be willing to pay the price miss out. Beyond this, conclusions from the independent Waterson Report illustrate that price caps simply do not work and instead drive ticket resales to underground and unregulated channels, where consumers have no protection or recourse if something goes wrong with their purchase. Rather than encouraging these dark alleys, the UK should regulate ticket resale platforms to act as safe and transparent marketplaces for buyers and sellers, helping fans, and to fill venues, which has a positive knock-on effect on local businesses and communities."

Owen Good, Head of Economic Advisory, Cebr, said:

“Our analysis demonstrates the significant and underreported risks of secondary market price caps. Beyond the frequently discussed risks of increased ticket fraud, which are well evidenced in other countries, the potential cost to the UK economy of even a small increase in unused tickets is extremely significant. Specifically, we find a potential £183 million risk to the UK economy should a quarter of ticket holders who currently resell tickets, instead not attend or resell. Businesses in the hospitality sector, such as in travel, food and drink and accommodation, would be particularly negatively impacted.”

Notes to the editor:

*Cebr. Head of Economic Advisory. Cebr research on the financial contribution of the secondary ticketing marketplace on the UK economy - 2024

About Cebr:

Centre for Economics and Business Research is a leading independent consultancy with a reputation for sound economic analysis based on thorough and insightful research. Since 1992, Cebr has been at the forefront of business and public interest research. It provides analysis, forecasts and strategic advice to major UK and multinational companies, financial institutions, government departments and agencies, and trade bodies. For further information about Cebr please visit www.cebr.com.

Research methodology

While the research underscores potential risks, Cebr emphasises that outcomes would depend on how any price cap is designed and implemented. Potential business losses are calculated at £7.3m per 1% of tickets not being utilised by the buyer after being bought on the primary, and not being sold on the secondary market. The findings suggest that policymakers should carefully weigh the broader economic impacts before moving forward with proposed restrictions. The research was commissioned by viagogo with Cebr.