StubHub CEO Eric Baker Probed on Ties to Ticket Reseller Andro Capital

Democrat Robert Garcia, Ranking Member of the Committee on Oversight and Government Reform, is ramping up his investigation into StubHub CEO Eric Baker’s ties to ticket reseller Andro Capital Management.

Escalation:

• Garcia sent a letter to Baker on Thursday October 22, addressing him in his capacity as Andro Capital’s Managing Director and demanding answers around his dual roles.

• It follows an initial letter sent in July, amid allegations that Andro buys tickets in bulk and resells them on StubHub, earning millions in the process.

Why it matters:

• In a statement on Thursday, Garcia commented that Baker “appears to be using” his positions at both companies “to profit, potentially at the expense of customers, fans, and artists.”

• He described it as an “apparent conflict of interest and potential grift.”

• The latest letter requests details of the financial relationship between StubHub and Andro Capital, including cash flows, financing agreements, fees, and the exchange of related services.

• It also raises concerns about the ties between StubHub, Andro Capital and its affiliate Colloquy Capital – to which StubHub refers sellers for financing, and with which it has a separate ticket-management services agreement – and Baker’s personal connection to all three companies.

• Baker has until November 5 to respond.

Disclosure and response:

• Baker’s relationship with Andro Capital was disclosed in StubHub’s securities filings.

• In a statement to The Hollywood Reporter around the July letter, StubHub referred to Andro Capital as “a separate company and...one of many vendors we use...This relationship with Andro Capital makes up only a small fraction of StubHub’s total revenue.”