By David Jeans
NEW YORK, Feb 24 (Reuters) - A Miami-based ticket broker offered investors 50% returns over six months through a plan to resell FIFA World Cup tickets at steep markups, even as angry fans say "extortionate" prices are shutting them out of the world's most-watched sporting event.
TicketKings, which was founded in 2019 and says on its website that its goal is to "democratize access to live entertainment," sought $5.5 million to buy 8,000 World Cup tickets for matches involving England,
Brazil and Scotland, among others, and offered returns as high as 87%, according to a pitch deck from the company that was reviewed by Reuters.
In the proposal, TicketKings warned that the tickets could be cancelled by a "FIFA invalidation or enforcement actions," though the firm said it takes steps to mitigate these risks.
The investment proposal, which has not been previously reported, surfaced as global soccer fans vent their anger over ticket prices for the June 11-July 19 tournament in the U.S., Canada and Mexico. Prices already are the highest in the World Cup's history.
"A premium investment opportunity capitalizing on the world's most watched sporting event through strategic ticket acquisition and resale," the TicketKings pitch deck states. "Our World Cup ticket fund will invest in 33 matches, carefully selected for their market demand and projected returns."
TicketKings did not respond to requests for comment. Reuters could not determine whether any investors backed TicketKings' offer.
In response to questions from Reuters, a FIFA spokesperson said the organization was not aware of TicketKings' investor proposal. The spokesperson added that reselling thousands of tickets to generate investor returns would violate the soccer governing body's ticketing rules, and that its ticketing enforcement team would look into the matter and take "appropriate measures."
UNPRECEDENTED DEMAND FOR TICKETS
Top-tier tickets for the July 19 World Cup Final in East Rutherford, New Jersey, originally went on sale for as high as $8,600 each and have since soared on the resale market. One ticket was listed for $230,000 on FIFA's resale marketplace.
FIFA President Gianni Infantino has defended the ticket prices, citing unprecedented demand and the revenue generated for the sport around the world.
TicketKings, founded seven years ago by then-high school student Greg Kuperman, according to his LinkedIn profile, says on its website it is "creating efficient, transparent, and fair markets that benefit both fans and event organizers worldwide." It says it has sold more than $60 million in tickets for other events.
The firm said in the pitch deck that the FIFA opportunity emerged because a third party won the right to purchase the tickets directly from the soccer body via its draw system. TicketKings said it didn't have the capital to buy the tickets, so it aimed to pool investment by a February 17 deadline.
The firm said its "largest holdings" are tickets for the Portugal versus Uzbekistan match on June 23 in Houston, which it projects will generate an 87% return on investment, the Scotland versus Morocco game on June 19 in Foxborough, Massachusetts, and a quarter-final draw that it expects will be between Brazil and England.
"These featured matches exemplify the fund's strategy: identifying high-demand fixtures with significant return potential, optimizing for both acquisition cost and resale value," the firm states.
(Reporting by David Jeans; Editing by Joe Brock and Paul Simao)
