Memorandum submitted by The Football Association
and Wembley National Stadium Ltd
1. Wembley Stadium and The FA wholeheartedly
support existing legislation to restrict ticket touting in football,
which we believe is vital for the ongoing success and development
of the game. We also believe that there is a sound moral, economic
and practical case for extending existing regulations to cover
all major sports and other ticketed events. We therefore very
much welcome the opportunity to respond to this inquiry.
2. The FA is also a signatory to the submissions
to this inquiry being made by the "Five Sports" (ECB,
FA, LTA, RFL, RFU) and the Sports Rights Owners Coalition. In
addition, given football's unique perspective as the only existing
activity governed by legislation in this area, and Wembley Stadium's
perspective as a major event host, we believe that the Committee
will be interested to hear our specific views on this issue. We
would also be very grateful for the opportunity to follow up this
response with oral evidence to the Committee.
BACKGROUND ON
THE FA AND
WEMBLEY STADIUM
3. The Football Association is the governing
body for football in England. The FA takes the lead in providing
a structure for football, and is responsible for regulating, promoting
and developing the game at every level, both on and off the field.
4. Specific activities include running international
teams, organising cup competitions for clubs (notably The FA Cup),
youth development, refereeing, coaching, medical matters and representing
the English game internationally. The FA also establishes the
regulatory framework for the game as a whole, ensuring that the
Laws of the Game, agreed internationally, are followed at every
level, and operates a set of rules and regulations for the governing
of the game domestically.
5. Wembley National Stadium Limited (WNSL)
is a wholly owned subsidiary of The FA, responsible for the operation
of the national stadium. It stages major football matches, many
of which are named above, and other major sporting events, such
as the Rugby League Challenge Cup Final, an NFL American Football
game, and The Race of Champions. This summer Wembley Stadium is
also hosting music events such as the "Live Earth" concert,
the "Concert for Diana", and other high-profile artists
such as George Michael and Muse.
6. The FA is responsible for ticketing arrangements
for all FA run matches at senior level: the matches that we host
are England Senior Internationals, The FA Community Shield, The
FA Cup Semi Finals and Final.
7. Demand for tickets for these matches
is huge. However, The FA does not price its tickets at market
value, but instead aims to strike a balance between accruing the
revenue necessary to continue our investment in developing the
grassroots of the game, and ensuring the greatest attendance and
access to match tickets for those who follow and play the game.
This policy is in the long term interest of the sport and the
grassroots development of the national game.
8. Ticket touting—the unauthorised
secondary market in tickets to football matches—is completely
contrary to that policy. By various tactics, touts grab tickets
priced for ordinary fans, and then sell them on in the black market.
These tickets are often packaged with other expensive add-ons
at extortionate prices thereby exploiting the genuine fans' love
of their sport, and/or putting tickets out of their reach.
9. In other words, where The FA has chosen
to forego a commercial opportunity in order to make the sport
accessible to fans, ticket touts misappropriate that opportunity
and abuse it to their own advantage. Moreover the tales of touts
flouting consumer protection laws and regulations and disappointing
customers at home and from overseas are numerous. It is The FA
that bears the brunt of the ensuing criticism and complaints.
10. All of this is before taking into account
the very careful segregation and vetting arrangements that the
football authorities and the law enforcement authorities put in
place in respect of sale of football tickets in order to safeguard
public order and safety, all of which is completely circumvented
and jeopardised by the black market sale of football tickets.
11. WNSL and The FA commit significant resources
to fighting ticket touting in football, and wholeheartedly support
existing legislation to restrict ticket touting in football. We
believe the legislation is vital for the ongoing success and development
of the game; and we believe that there is a moral, economic and
practical case for extending existing regulations to cover all
major sports and other ticketed events. As such, we very much
welcome the opportunity to respond to this inquiry.
WHY TICKET
TOUTING LEGISLATION
IS IMPORTANT
FOR FOOTBALL
12. Section 166 of the Criminal Justice
and Public Order Act 1994 makes it a criminal offence for an unauthorised
person to "sell a ticket for a designated football match,
or [...] otherwise to dispose of such a ticket to another person."
Designated football matches for these purposes covers the vast
majority of professional football matches played in England and
Wales or featuring professional English and Welsh clubs and national
representative teams playing abroad. Recognising the growth of
the Internet in fuelling touting for tickets to football matches,
the Government extended these provisions to cover online touting
through the Violent Crime Reduction Act (VCRA) 2006. This is explained
further later in this document.
13. The VCRA legislation has helped football
in the following ways:
Public order
14. The original legislation was instituted
in the aftermath of the 1989 Hillsborough disaster and against
a backdrop of hooliganism. It was widely believed that touting
circumvented the necessary segregation of fans of different teams,
leading to disorder in football grounds. The 1994 Act was somewhat
successful in marginalising the "street touts" around
football matches, helping to alleviate the public order problems
caused by touting. In tandem with concerted actions by the football
authorities to tackle public order issues in the game, the legislation
was very helpful in this regard.
Protection for fans
15. Legislation to restrict touting in football
has had a beneficial effect on the fans of the game. With fewer
tickets to matches being hijacked by touting operations, there
is more opportunity for fans to access tickets at face value prices.
Furthermore, the match day experience for fans has improved markedly
with the reduction in disturbance and intimidation that follows
from the reduction in the number of touts around stadia. This
has helped football move into the 21st century as a family-friendly
activity, a shift encouraged and further developed by other measures
from the football authorities.
Protection of events and reputation
16. By improving public order and aiding
fans, and protecting fans as consumers from abuse by touts, the
1994 legislation helped to protect the reputation of The FA and
the game of football itself. This aided in the escalation of football
from simply a game to a significant and very high-profile industry,
reaching all sections of society. Numbers of both participants
and spectators in football have grown significantly in recent
years.
Revenue retention
17. Legislation restricting the activities
of touts ensures that fans' and consumers' money generally does
not leave the game of football for the black market. The opportunity
cost to football of the black market in tickets was severe, and
had implications for the investment in and development of the
game prior to legislation. These are implications which other
sports continue to face (please see the submission from the "Five
Sports").
Developing the legislation to address new challenges
Originally the 1994 Act made it an offence for
an unauthorised person to "sell, or offer or expose for sale,
a ticket [...] in any public place or place to which the public
has access or, in the course of trade or business, in any other
place." There was uncertainty as to whether this covered
unauthorised internet trading in football tickets.
In response to representations from football
authorities, supporters' groups and others, the Government amended
the 1994 Act through provisions in the Violent Crime Reduction
Act 2006. The 2006 Act ensures that the touting offence covers
not just selling, offering for sale and exposing for sale but
also making a ticket available for sale by another, advertising
that a ticket is available for purchase, offering a ticket to
a person who agrees to pay for some other goods or services, or
otherwise disposing of a ticket. This legislation (appended in
full to this submission) is intended to include internet and other
modern touting operations within the scope of the original regulations.
Initial findings have been that most major sites
which previously allowed online football ticket sales, including
eBay, now respond by removing relevant listings when informed
of their presence by the football authorities. Several secondary
agents, however, continue to flout this law, and The FA and other
football authorities are working with the law enforcement agencies
to fight this scourge.
HOW FOOTBALL
WORKS TO
PREVENT TOUTING
18. While many believe that the police and
courts could and should be taking greater action to enforce the
legislation and so to prevent touting, it is clear that the 1994
and 2006 Acts have greatly assisted and enabled the law enforcement
agencies and the football authorities to work together to crack
down on touting. In particular:
— The football authorities and law
enforcement agencies have had substantial dialogue, assisted by
the Home Office, to develop mutually beneficial strategies for
fighting touting, dovetailing criminal investigations and prosecutions
under the CJPOA 1994 with civil enforcement proceedings in the
English High Courts.
— Whereas touts can seek to cloud civil
enforcement efforts by arguing about the source of their tickets
and/or whether or not the precise ticket terms and conditions
have been breached by their activities and/or are enforceable
against them, the terms of the legislation are clear and can not
be disputed by the touts. Therefore, in demanding undertakings
from touts, or (if no undertakings are provided) in seeking injunctions
from the civil courts restraining touting activity, the football
authorities are able to point out that the activity in question
is not only an infringement of civil rights but also a stand-alone
criminal offence. This has been of great assistance in persuading
the civil courts to grant injunctions restraining touting, which
is particularly important in protecting public order and safety
at or around major matches and events.
— Similarly, while eBay and others
may wish to resist football authorities' efforts to invoke the
contractual restrictions on resale of tickets to stop the touting
of football tickets on virtual auction sites, eBay in particular
has recognised it cannot be a party to a criminal act and therefore
has put in place measures for the identification and takedown
of any auction item involving sale or other disposal of a football
ticket.
— For the same reasons, others who
become tangentially involved in the wrongdoing of the touts—such
as travel operators and hospitality providers—can be more
easily persuaded to desist because of the criminalisation of touting
in the CJPOA 1994.
— Because the requirements of the criminal
and civil law coincide, the football authorities have been able
to work together with the police, trading standards and other
agencies to the mutual benefit of all sides. In particular, the
legislation has provided the foundation for the sharing of information
about touting activities as well as for the commitment of resources
to fund and support anti-touting initiatives.
— Recently released Home Office figures
show that there were 130 convictions from 2001-06 under section
166 of the Criminal Justice and Public Order Act 1994.
19. In addition to exercising their legal
rights and remedies, The FA and WNSL have a number of other mechanisms
in place for combating touting:
Internet monitoring and enforcement
20. The FA actively monitors several internet
auction sites for sales of tickets to FA controlled events. If
any FA ticket auctions are listed, a representative of The FA
will contact the auction site and request that the auction be
removed. Over the past few years The FA has developed a good relationship
with the major auction sites and usually the auction is removed
within hours of The FA's request.
21. If the auction includes details of the
seat number, these details are noted and the purchaser is blacklisted
from being able to purchase tickets from The FA in the future.
If the auction includes the details of the seats and the tickets
have not yet been sent out, then the ticket order is cancelled
and no refund is made. If the tickets have been sent out, then
action can be taken at the venue, either by preventing entry for
those ticket-holders at the gate or by ejecting them once they
have taken their seats.
22. We also actively monitor the Internet
and the print media for the sale of both unauthorised corporate
hospitality packages and ticket sales. If The FA discovers an
organisation offering tickets to FA matches, either alone or as
part of a hospitality package, then we contact the organisation
and bring the terms and conditions of the tickets to their attention
and request that they immediately desist from selling any hospitality
packages or tickets.
23. If the organisation is advertising via a
website and does not remove an advert which includes the sale
of a ticket, then we will contact the website host and inform
the host that its client is committing a criminal offence which
may affect the host's liability because it is facilitating the
offence. Having drawn this to the host's attention, The FA will
request that the relevant website is removed. The website host
will then have to act to avoid any liability under the CJPOA 1994,
and it will have reserved the right to take such action in the
website host agreements, which will impose an obligation on the
website owners not to commit any illegal act.
"englandfans"
24. "englandfans" is the official
England supporters members club and being a member is the only
official way to obtain tickets to away internationals. All prospective
members must have their police records checked when applying to
join "englandfans". Anyone who has previously committed
a relevant offence, such as football disorder related one, or
is the subject of a Football Banning Order, is not admitted to
membership.
25. In the past, a small number of members
have tried to sell their tickets to away matches and home matches
through internet auction sites, and relevant sanctions have been
taken. This circumvention of the vetting procedure means there
is a risk of banned individuals obtaining tickets. Therefore any
member that sells, or attempts to sell, the tickets that he/she
has obtained through being a member will be expelled from the
club.
26. "englandfans" members have
also been encouraged to contact The FA with details of organisations
or individuals which they notice are selling tickets without permission.
The FA has expelled approximately 15 members for unauthorised
activity.
Other mechanisms to restrict touting
27. Ticket sales for England games are restricted
to prevent anyone purchasing more than four tickets, with the
exception of the family enclosure, where five tickets can be purchased
together.
28. Wembley Stadium is continuing to work
with event promoters and primary ticket agents to ensure that
touting is minimised at events held at Wembley. The exchange and
returns policy for the tickets themselves will be for the event
organiser to decide, but where the tickets are part of the "Club
Wembley" package, there are further restrictions, such as
the ability only to resell an unwanted ticket through WNSL itself.
29. We are keen to ensure that all unauthorised
ticket sales for our events are dealt with appropriately. The
FA recently set up a confidential tout line to which fans who
are aware of touting activity can report the activity after the
match. We are hopeful that this will allow us to take action against
touts, and those supplying touts, to prevent these individuals
re-offending.
30. More widely, football is also working
with new technologies to make touting more difficult. A number
of Premier League clubs now have electronic "smart cards"
which act as tickets for the whole season (rather than individual
paper tickets for specific matches). It is difficult to tout these
smart cards as the ticket buyer would have to return the smart
card to the tout after each match. Many football clubs are also
taking the lead in cancelling tickets, refusing entry and ejecting
people who are known to have bought their tickets from touts.
This draws criticism from people claiming we are targeting innocent
victims, but we believe this is an important part of the fight
to stamp out the black market—only if the ticket conditions
are enforced and people denied entry will they learn not to buy
from touts, and will they warn others not to do so, thereby cutting
off the demand for the touts' services.
THE NEED
FOR GREATER
ENFORCEMENT
31. However, despite existing legislation
and the work being undertaken by the football authorities to ensure
the aims of the legislation are upheld, we strongly believe that
more needs to be done to enforce the legislation.
32. Our work in the area of civil enforcement
demonstrates that many organisations continue to flout the law,
and we have a number of concerns with the enforcement of the law
in its current form. In particular, it is widely believed within
the football community (and, we believe, within the law enforcement
community) that the level 5 fine of up to £5,000 assigned
in the Criminal Justice and Public Order Act is not enough of
a deterrent to prevent organised operations from touting with
impunity. Furthermore, enforcement of this legislation is very
poor, due to its low priority among police authorities, particularly
in locations where there are large football grounds, frequently
inner cities or areas of deprivation with other policing priorities.
We believe that the 130 convictions since 2001, while a good start,
represent just the tip of the iceberg in this area, and we believe
that greater enforcement would enable far more prosecutions of
this sort.
33. The FA would like to see ticket touting
at football matches made a recordable offence and we are in dialogue
with the Home Office about this. We are also encouraged that the
Home Office plans to issue new guidance on ticket touting which
will remind magistrates of the need to impose banning orders on
touts.
34. We would therefore urge the Committee
to recommend to Government that greater action is taken and greater
resources are allocated, in order to enforce existing legislation
banning ticket touting at football matches.
THE NEED
TO EXTEND
TICKET TOUTING
LEGISLATION
35. The FA and Wembley Stadium believe that
the legislation which currently applies to football, and to the
London 2012 Olympics through Section 31 of the London Olympic
Games and Paralympic Games Act 2006, should be extended to outlaw
touting at all sporting and other relevant events.
36. In part, this is a matter of consistency.
While football welcomes the legislation focused on our own sport,
we believe that it is perverse—given the hugely detrimental
effects on touting upon other sports and events—that others
do not have the same protection which we are granted. This anomaly
should be rectified.
37. This inconsistency also has a practical
effect—as a host of various different events, Wembley Stadium
is faced with a confusing and regulatory framework governing the
particular sports and events to which we provide tickets. The
burden of managing different regulatory structures across our
events is significant, and (more importantly) leads to confusion
and consequent disaffection among fans and consumers.
38. The FA also believes that the principle
of equality and fairness in access to tickets for all fans should
be extended to other events. We would argue that any regulatory
regime which allows touts to access tickets in large numbers for
any event, to the detriment of genuine supporters, is wrong and
unjust. Wembley Stadium works with a number of other event organisers,
such as the Rugby Football League and concert promoters, who deserve
the same level of protection that football currently has.
39. Pragmatically, prohibiting touting in
other events will help tackle those who continue to tout football
tickets. The current ability of the touts to carry out sales of
a range of other events without criminal sanction confuses the
public and lends an air of legitimacy to the touts' activities
that is wholly unwarranted and exacerbates the size and scale
of the exploitative and harmful black market. None of this assists
football in its fight against touting. Many touts who operate
across a number of events in the touting black market would rightly
be restricted by wider legislation, and this will undoubtedly
ensure that fewer tickets for football matches are touted.
40. For all these reasons, we would suggest
to the Committee that it recommends to Government that the current
legislation governing touting at football matches and the London
2012 Olympics is extended to cover all events for which tickets
are sold in the UK.
June 2007
| 
