Is 17-year-old ticket resale site Razorgator shutting down?
The Los Angeles-based ticket marketplace is no longer listing ticketing inventory on its site and the company is now facing legal threats from ticket brokers worried about getting paid for their tickets already sold on Razorgator.
Several ticket resellers “have expressed concern regarding RazorGator’s payment of accounts receivable,” a letter from Gary Adler with the National Association of Ticket Brokers to Razorgator’s CEO Nima Moayedi reads, asking for details on how and when members of the scalper group will be paid for tickets on the site, some going back six months. According to the Feb. 23 letter, Razorgator started falling behind on some of its payments to brokers “in the fall” of 2017. Today Razorgator missed a deadline to respond to an NATB inquiry about resolving outstanding payment issues with the ticket brokers, prompting likely legal action.
Adler’s letter asked “whether (Razorgator) would pay NATB Members on confirmation of a sale; and if not, what measures they could put in place to protect NATB Members,” Adler wrote. “At that time, Razorgator responded: ‘Razorgator’s standing payment terms are based on delivery of the tickets to our customers,'” later writing “It has been reported that RazorGator is no longer listing tickets and that employees have sent messages that raise concerns,” Adler wrote in a separate email to its members.
Hoping to avoid widespread ticket cancellation, Adler warned brokers not to cancel tickets sold on the site for future events, even if brokers had not yet been paid.
“For tickets currently delivered to end users for which the seller has NOT been paid, NATB recommends its Members do NOT cancel these tickets,” Adler wrote.
NATB officials are hoping to avoid repeating the mistakes made during Scorebig’s high profile meltdown in 2016. Backed by athletes like David Robinson and helmed by former Ticketmaster Executive VP David Goldberg, the company raised tens of millions from investors, only to flame out several years after launching with millions of unpaid tickets on its books. Hoping to recoup their losses, a number of scalpers cancelled ticket purchased through the site, leaving my consumers with tickets that were no longer valid, often without the fan’s knowledge. Several lawsuits were filed against Scorebig and some of the assets of the company were eventually sold off to TicketNetwork.
Razorgator is nowhere near as large as ScoreBig and it’s unclear how much inventory was listed on the site in the past, but as of today there appear to be no tickets for sports, concerts or Broadway available on the site with links to tickets either broken or showing no inventory available. Amplify attempted to contact company officials at Razorgator for comment but did not receive a response.