Three Things I Learned In SaaS, Sports, Tech & Live Events
1. The FTC is finally cracking down on brokers.
Key Investment Group is the first to draw the agencies’ ire, but they won’t be the last. The FTC effectively called its next shots by listing companies similar to Key and putting them on notice.
Key’s defense is similar to that of many brokers: “Other people are doing it, and Ticketmaster is the bad guy, so we should be allowed to break the law to illicitly profit from an industry we bring no value to.”
Putting aside how hollow an existence it must be to spend one’s life in a business built solely on ripping people off, there is an interesting trend bubbling up that we’ve mentioned here before: They’re starting to get caught.
And they have no leg to stand on. “The guy next to me was speeding too” doesn’t get anyone out of a speeding ticket.
Too many are ripping off content providers on a massive scale. It would be a terrific use of taxpayer dollars—and an easy PR win—to hold these brokers accountable.
I hope they do. And I hope the penalties are real this time to deter others from mirroring what Key and others before them, like Wise Guys, did.
These actions will have significant downstream effects. The secondary marketplaces will feel it first, starting with Vivid.
FTR: I actually like the honest brokers.
It’s dishonesty I loathe.
2. That Brand Name Isn’t What It Once Was
We recruit a lot. As such, we often receive résumés from companies we recognize. Some of the common names we’re told are positives: GrubHub, StubHub, Eventbrite, Vivid Seats, etc.
There’s a common theme in these businesses: their stocks have cratered.
For years, we watched companies grow without discipline—or real profit. I feel for those caught in the fallout now. When I’m looking for a top executive, I need someone who knows how to build a business that can turn a profit. Not someone whose only experience scaling is throwing money around. That’s the easy part.
And we can’t pay for that experience. It isn’t a positive—it’s a big negative.
3. “Impossible Is Just Something to Do.” – Phillip Brooks (aka CM Punk)
We started a small business for my high school son this month. He’s learning about arbitrage, profit, taxes, state licenses, and legal compliance by running a collectibles business we’ve incorporated in California.
I gave him seed money to fund his company and told him he’d need to make a return on it before college. That’s our goal together.
He asked: “What was the return on your investment in TicketManager?”
It’s hard to calculate with other investors coming in later, but here’s the simple math:
Joe, Aric, and I invested a total of $67,000 between the three of us in August of 2007.
The last valuation: $110M+ (not including salaries and bonuses along the way).
CM Punk, in tears reflecting on how he had just achieved his childhood dream of main-eventing WrestleMania, offered a new mantra in our home:
“Impossible is just something to do.”
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