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A peer says we should stop wealthy ticket holders from making large profits by reselling tickets at the Royal Albert Hall

Admin, The UK Times
27 Jan 2025 • 08:32 am
A peer says we should stop wealthy ticket holders from making large profits by reselling tickets at the Royal Albert Hall

A peer says we should stop wealthy ticket holders from making large profits by reselling tickets at the Royal Albert Hall

Lord Hodgson suggests that tickets for trustees should be sold through the Royal Albert Hall’s (RAH) box office, not through commercial websites.

A member of the House of Lords believes that the way the Royal Albert Hall is run could lead to wealthy people and businesses making more money from the seats they own at the charity venue. This could create a conflict of interest.

Peers are set to vote this week on a proposal to avoid this conflict by separating private interests from the RAH’s charitable purpose. The Charity Commission supports this proposal.

Robin Hodgson, who is suggesting this change, said that trustees might take more control and profit from selling unwanted tickets on commercial sites like Viagogo.

The conflict of interest comes from the fact that the RAH’s council of trustees includes people who own seats, and some of them are selling tickets at high prices. The RAH hosts about 400 events each year, including Proms and pop concerts.

The hall, which opened in 1871, was partly funded by people who bought seats as an investment. Today, the people who own seats include companies, charities, and individuals, some of whom have owned their seats for generations.

Seat owners who don’t want to attend a concert or event can return their tickets to the hall’s box office for the ticket price minus 10%. However, in recent years, some seat owners have sold tickets for much higher prices on other websites.

For example, in 2023, tickets for an Ed Sheeran concert with a face value of £200 were being sold on resale websites for up to £6,000, which upset the singer. Tickets for the Last Night of the Proms, with a face value of £100, were being resold for over £1,000.

Seat owners don’t have the right to use or sell their tickets for every concert or event. However, a new bill gives the 25-member council of trustees—19 of whom are seat owners—more power to decide which events will be available to seat holders. This means the trustees could choose to make the most popular or profitable events available to seat holders.

Lord Hodgson wrote a letter asking other peers to support his proposed change. He said, “Owning a seat has become a way to make a lot of money for the owner… It’s clear that they are making big profits.”

The fact that so many seat owners are on the board of trustees creates a situation where they could benefit personally from the decisions they make, which goes against the rules of charity governance.

Hodgson is suggesting that a special group of independent trustees should approve any council decisions about events. Also, tickets for seat-holders should be sold through the RAH box office instead of commercial websites.

Earlier this month, the Charity Commission sent a letter to Hodgson saying it was very concerning that the RAH hadn’t fixed a possible conflict of interest yet. The Commission emphasized that the RAH needs to address the serious concerns about how it is managed.

Hodgson mentioned that the RAH is an important national institution, hosting many of the most famous cultural events in the country. However, he pointed out that charity law states trustees must not personally benefit from their decisions for the charity.

Published: 27th January 2025

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