The UK divisions of ticket resale platform Viagogo were recently hit with a $49m tax bill. They are currently behind a grand total of £15 million. Her Majesty’s Revenue and Customs (HMRC) made some damning discoveries. They decided that the two districts had not collected sufficient duty. That’s on the back of the firms having already been forced to cough up an additional £5.5 million this year.
Viagogo claimed to’ve reserved £15 million, HMRC stated. This total includes the interest that has built up on tax receipts as well as penalties for non-payment. The two UK divisions, registered at an address on London’s Cannon Street, do not sell tickets directly to end consumers. Rather, they operate as a holding company under the name today, providing technology and customer services to their operating group companies in the specified time period.
In the UK, the government is preparing to take another look at the practice of “secondary ticketing.” Consequently, Viagogo’s twin businesses are under fire. This review attempts to establish standards that would prevent sky high ticket resale markets. If adopted, these changes could have a big impact on the future operation of secondary markets.
Viagogo’s parent company, StubHub Holdings, floated on the US Nasdaq index in September 2023 with a valuation of $8.6 billion (£6.5 billion). Since then, the company’s valuation has plunged back to earth, now valued around $6.6 billion. This drastic drop in value calls into question the financial stability of the company while it continues to face a barrage of regulatory issues.
The combination of the recent tax bill and the ongoing government review may pose new risks to Viagogo’s business. Collectively, these changes will affect its ability to operate across the UK profoundly. The secondary ticketing issue is still heating up. Industry stakeholders are waiting in rapt attention to see how these developments will play out.