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StubHub Faces Scrutiny Over CEO-Linked Resale Deals
July29
StubHub is facing renewed scrutiny over commercial arrangements involving companies linked to founder and chief executive Eric Baker, raising questions about transparency and potential conflicts of interest in the secondary ticketing market.
According to company filings highlighted by Canadian broadcaster CBC and ticket-pricing platform Popcorn, Baker is a part-owner and managing partner of Andro Capital, an investment fund that has used StubHub to manage, list and fulfil tickets since 2008.
StubHub also has a relationship with Colloquy Capital, an Andro affiliate that provides short-term financing to professional ticket resellers operating on the platform.
The arrangements are relevant to the live music industry because StubHub is one of the world’s largest secondary ticketing marketplaces, handling billions of dollars in ticket transactions for concerts, sports and other live events.
Commission rate not disclosed
StubHub has disclosed the existence of the related-party arrangements, but it has not published the commission rate paid by Andro for tickets sold through the platform.
Professional resellers generally pay a percentage of each completed transaction, although rates may vary depending on sales volume and previously negotiated agreements.
StubHub’s filings reportedly showed no fee revenue from Andro in 2024. However, Andro generated more than $5 million in proceeds through the platform between 2022 and the company’s pre-IPO reporting period.
The relatively limited value of Andro’s sales compared with StubHub’s overall business suggests the fund represents a small proportion of the marketplace. StubHub reported approximately $9.2 billion in gross merchandise sales in 2025.
Nevertheless, the absence of a disclosed commission rate has prompted questions about whether the Baker-linked fund operates under the same commercial conditions as other ticket brokers.
Related-party payments
The filings also outline a series of financial arrangements between StubHub and Andro.
StubHub paid Andro $1.6 million in 2023 to terminate an earlier ticket inventory partnership. In April 2024, the company agreed to cover certain costs incurred by Andro in connection with ticket-management services.
In March 2025, StubHub entered into a further agreement to sell and service tickets owned by Colloquy Capital.
There is no public evidence that StubHub has waived or reduced Andro’s standard fees. However, the company’s failure to disclose the applicable rate means external investors, brokers and industry participants cannot independently compare the terms with those offered to other sellers.
Financing for ticket brokers expands
The relationship with Colloquy could have broader implications for professional ticket resellers.
Under the arrangement, StubHub may refer selected brokers to Colloquy for short-term financing to purchase ticket inventory. Revenue from subsequent ticket sales can then be routed directly through StubHub to repay the lender.
Colloquy’s secured interest in reseller proceeds increased from approximately $100,000 at the end of 2024 to $4.8 million by June 2025. It reached $7.9 million in December 2025 and $9.2 million by March 2026.
The growth indicates increasing demand for financing among ticket brokers, whose businesses often require substantial capital to acquire tickets before resale.
Critics argue that the structure could create a conflict because the platform owner’s affiliated company provides financing to sellers while StubHub controls marketplace data, transactions and payouts.
Governance concerns
Baker reportedly holds around 10% of StubHub’s economic interest but controls approximately 90% of its voting power through a dual-class share structure.
StubHub has registered as a controlled company under New York Stock Exchange rules, allowing it to opt out of certain corporate governance requirements available to other publicly listed businesses.
The company has acknowledged in its regulatory filings that Baker’s interests may differ from those of other shareholders.
No allegations of unlawful conduct have been established in connection with the Andro or Colloquy arrangements. The relationships were disclosed in StubHub’s regulatory filings.
The central issue for brokers and the wider live entertainment sector is whether related companies receive preferential commercial terms on a platform that plays a significant role in setting prices and facilitating the resale of concert tickets.
Publication of the commission rate paid by Andro would provide greater clarity over whether it operates under comparable conditions to other professional sellers.
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