A proposed government price cap on reselling live event tickets could potentially cost the UK economy as much as £183 million, according to new research from the Centre for Economics and Business Research (CEBR).
The report examined how a price cap on ticket resale might affect users of regulated resale platforms who either choose not to attend events or opt against reselling their tickets. Findings suggest fewer tickets would be resold through official channels, leading to more empty seats and greater risks for consumers.
The research warns fans may increasingly turn to unregulated resale methods, such as social media, where consumer protection is minimal and fraud risk rises significantly.
The UK government is currently considering such a price cap to tackle ticket touting, which involves bulk-buying tickets and reselling them at inflated prices.
In March, the Competition and Markets Authority (CMA) backed measures to enforce limits on ticket resales in an effort to protect consumers.
Owen Good, head of economic advisory at CEBR, highlighted the wider economic risks of price caps, pointing to the likelihood of increased ticket fraud and a potential £183 million loss to the UK economy should a quarter of ticket holders stop reselling or attending events. He noted the hospitality sector, including travel, food and drink, and accommodation, would face considerable negative impact.
CEBR reports the secondary ticket market generates around £733 million in annual turnover and supports 7,736 full-time jobs. The sports sector alone benefits from £170 million in yearly revenue from secondary ticket sales.
Experts caution that imposing price caps could severely reduce this income, as fewer tickets might be resold or used by buyers.
Rob Wilson, professor of applied sport finance and director of executive education at UCFB, stressed that previous government and CMA reports warned price caps could harm consumers by shrinking the regulated resale market.
He noted that the projected 25% rise in unsold tickets, as estimated by CEBR, could cost the economy an amount equivalent to funding the entirety of Team GB’s Paris 2024 Olympic campaign, surpass the English Football League Championship’s total transfer spend for a season, or equate to selling out Wembley Stadium ten times at £90 a ticket.
The report also highlights how price caps risk pushing buyers and sellers towards unofficial platforms lacking consumer safeguards. Research cited from Bradshaw Advisory shows that regions like Victoria, Australia, and Ireland, where price caps exist, have experienced nearly four times the UK’s level of ticket fraud.
Some resale platforms, especially those not involved in primary ticket sales, may struggle to comply with price caps due to difficulties in verifying original ticket prices. This could reduce the number of safe resale options for fans.
Tony Neate, CEO of Get Safe Online, warned that regulated resale platforms provide essential transparency, secure transactions, and consumer protection. Removing these protections would drive fans into risky, unregulated spaces where scams flourish.
He added that ticket touts would likely shift their activities to these unmonitored areas, undermining consumer protection efforts and increasing fraud risks, which have already caused widespread harm globally.
Neate emphasised that instead of viewing resale as the enemy, it should be considered part of the solution. While price caps might seem like a quick fix, they risk triggering a surge in fraud that ultimately harms fans.
