City Offers Equivalent Credit But No Cash To Ticket Rocket's Victims

By Robert Thomas

The Ticket Rocket fiasco reached Council on Tuesday evening and after a 20 minute debate Council agreed to offer compensation in the form of equivlent dollar gift cards for an upcoming concert or Moose Jaw Warriors’ hockey game.

The gift cards are being offered because the City feels they have a “moral obligation” to ticket purchasers although not a legal one.

Ticket Rocket, as the contracted ticket issuer for Mosaic Place, had failed to make promised refunds for two concerts and three Warriors’ games cancelled due to provincially declared State Of Emergency restrictions imposed to slow the spread of COVID - 19.

The concerts cancelled were the ZZ Top concert scheduled for May 10th, the High Valley concert scheduled for May 28th and three Moose Jaw Warriors games scheduled for March 14, 17 and 21, 2020 were all cancelled. For all of these cancelled events Ticket Rocket agreed to issue refunds by August 22nd but no refunds were issued leaving hundreds if not thousands of people asking what happened to their money.

Numerous ticket purchasers have been unable to receive refunds for a variety of reasons including it is now too late to get a refund from their credit card companies, or they paid with their debit cards or cash. It is unknown exactly how much is left unrefunded but the amount was estimated to be $200,000.

Addressing Council city manager Jim Puffalt said concerns about cash flow from Ticket Rocket were raised as early as the lead up to the Scotties which were held in February of this year but action was taken to get those funds from Ticket Rocket at that time.

“As we know Ticket Rocket (there has been) many difficulties with that company. As Scotties came along we were getting growingly concerned with the funds coming back to the City and we were very happy we were able to get all of the Scotties money back in and some of the other money. But in the end certainly Ticket Rocket was not able to fulfill what they promised in the agreement they signed with the DFFH (Downtown Facility and Field House) back in 2016,” Puffalt said.

Due to the problems with Ticket Rocket remitting funds and the on-going deterioating relationship with that company the City came to an agreeement with Ticket Rocket on May 29th whereby an all-inclusive settlement to resolve amicably and conclusively all the matters and claims between the parties.

Puffalt said the City had limited the impact by taking action early with Ticket Rocket as the the situation could have been “much, much worse if we had not.”

Although the agreement eliminated the City from taking legal action against Ticket Rocket it did not release Ticket Rocket from any monies it owed to ticket purchasers, the report from Administration stated.

“The City adamantly condemns Ticket Rocket’s current failure to refund amounts lawfully owed to ticket holders of cancelled events. However, the City is of the opinion that it does not have any reasonable legal claim or recourse against Ticket Rocket to force such Refunds to occur,” the report went on to further state.

“As we became growingly concerned we asked for funding to come every Friday and that came for awhile and as we said we were able to get all of the money from the Scotties in and some of the other money in from other things. But unfortunately they promised they would pay the ticket holders who had purchased the cancelled tickets for the cancelled shows but they have not,” Puffalt said.

“At this time, we do not believe that Ticket Rocket intends to issue the Refunds,” the report to Council read adding “in this circumstance, it is believed that there is a moral obligation owed by City to the ticket holders.”

Council heard Ticket Rocket had to remit monies for the Scotties every Friday due to concerns - MJ Independent file photo

The reason given for the City having no legal obligation is the fact the contract in purchasing the ticket is between the ticket purchaser and the ticket issuing company and not the City of Moose Jaw.

The reasoning behind the “moral obligation” by the City to issue gift cards was because the entire episode affected the reputation of the City and not the fact that Ticket Rocket was allowed to continue to operate for months after the initial concerns arose.

“We don’t believe they (Ticket Rocket) are going to (make good on refunds). We do not have a legal responsibility on these tickets but we think we suggest to Council there is a moral responsibility in that this company has left lots of us in a very frustrated state and it is certainly bad public relations, bad service to customers who willing bought tickets,” Puffalt said.

“We cannnot seem to do anything with Ticket Rocket. Whatever they have done they have done,” he said, adding “we are suggesting there is a moral obligation trying to make this right for people knowing we don’t have the money in the bank account.”

Puffalt said some people have been able to receive refunds through their credit card companies later in the debate stating if people wanted a refund and not the gift card that is the route they should take with their credit card companies.

“We can make it right to a great degree by offering gift certificates to upcoming shows and concerts.”

Administration recommended providing ticket holders, who could not receive a refund through their credit card companies, an equivalent credit gift card to an upcoming concert or hockey game. Ticket purchasers would have to show some type of proof of purchase and sign an affidavit saying they had not already received a refund.

Although having no legal obligation to provide any type of compensation, only a moral and reputation one, Adminstrations plan did have its detractors based upon in the end it is taxpayers who are going to be paying for the Ticket Rocket fiasco.

Councillor Brian Swanson asked Puffalt how the gift certificates will be accounted for and if that did not mean in the end taxpayers were in reality footing the approximate $200,000 bill but it was being filtered through the facility. Councillor Swanson said there would have to be some form of payment to the artists and promoters for gift cards when used.

Puffalt said that at any event there are empty seats and this would fill them.

“It will be a loss leader…it will be an opportunity for people to use their tickets,” Puffalt said. “We are paying out those costs any way.”

A loss leader is a product or a service offered at a loss by the seller to get customers inside a store or an event in hopes they buy other products which are not heavily discounted.

Councillor Swanson continued to press that the gift certificates would end up costong much more than simply going out and purchasing the gift certificates.

“This is not free money. There is an account or a cost to it,” he said. “If there is a cost (to this) then it is a cost to the taxpayer.”

“I did not say it was free,” Puffalt replied.

The May 10th ZZ Top concert was cancelled due to the COVID - 19 pandemic

“If there is a cost to it, just to be clear that cost is being born by the taxpayers of Moose Jaw,” Swanson rebutted.

“The moral obligation we can talk about it but it is the taxpayers paying for this. And it is unfortunate but I think the attempt here to filter this cost out here anywhere is not going to be very satisfying to people on the receiving end who I think are better advised to pursue their credit card company. Here is a $200,000 loss for the City of Moose Jaw,” he said.

Councillor Swanson went on to ask when exactly there might be concerts again and it might not be as optimistic of a prediction because insurance companies were not so keen on insuring concerts given that they could be sued if people who attend get sick with COVID - 19.

“(It is) probably a long tme before there are any concerts due to insurance companies not accepting liability of putting a bunch of people in a building into a concert.”

“The moral obligaton we can talk about it but it’s the taxpayers who are going to be paying for it…here is a $200,000 loss for the City of Moose Jaw,” Councillor Swanson said.

“I agree this is not going to be satisfying for most people,” he said. “People are going to be receiving a gift certificate that is not useable for at least a year or more.”

Despite opposition to issuing an equivalent credit the majority of Council felt it was the best route to take.

Speaking in favour of the recommendaton Mayor Fraser Tolmie said that Ticket Rocket was in essence working as “an agent for the City” and because of this the City had a moral obligation to offer some type of compensation to ticket purchasers who cannot secure a refund.

“Ticket Rocket was an agent for the City and ultimately the responsibility lies around this table. It is bad enough these people have not been able to go and see a concert, bad enough we are going through this COVID - 19 pandemic but we don’t have to add injury to insult,” Mayor Tolmie said. “It’s not perfect…but this Council is going to make a decision to in some way reimburse those who have been out.”

“We have to take responsibility. We are responsible for the reputation of this city in the future for other concerts so we have to think about that. We want to encourage people back. When they do come…we have to look at doing the best we can with our own reputation,” he said.

Councillor Heather Eby said she felt this was the best option available to the City although she admitted there was two ticket purchasers who she spoke to who did not want a gift certificate but their money back.

“I did have a call last week and then again today regarding this and tbe person who called me today had read the report online and was really not happy. They do not think this is a good option and rather of course have the cash,” Councillor Eby said, adding “I also feel that this is the best of the worst thing we can do.”

“To put $200,000 on Moose Jaw tax payers to pay this back would be really not fair to the taxpayers of Moose Jaw but I do think this is a good thing for us to do,” she said. “I’m sorry for those people who are not going to be happy about it but it is much better than the alternative of absolutely nothing.”

Councillor Dawn Luhning said she was pleased to read the report.

“I was happy to read this report on the weekend. I think it is a great option and one that the City just has to do. It is about reputation and good will. We can sit here all we want and commiserate about the former (ticket agent) but it reflects on the City of Moose Jaw,” Councillor Luhning said. “I think it is in the best interest of the City of Moose Jaw to make sure that those patrons are provided some kind of return.”

Later she would say by taking this action the City helped avert continued reputational damage on social media and in the press.

“We have a responsibility as the City of Moose Jaw whether we like it or not that Mosaic Place and the business that goes on there good or bad unfortunately at times falls in to the taxpayer…what do we do? At least we are trying as the City of Moose Jaw to offer something…what are we suppose to do just wallow around and let the social media comments burn off and the news articles up that the Coty of Moose Jaw is horrible because they haven’t refunded my money or given me something for this,” Councillor Luhning said.

“I think we have a moral obligation to try and rectify this and regardless it may not be a perfectly perfect,” Councillor Scott McMann said going on to ask how long it would tke to issue the gift cards.

“Are there procedures and processes in place if this gets approved tonight?” Councillor McMann asked. “I assume we are going to get pretty busy or the folks at Mosaic Place are going to get pretty busy with this. Are we ready to issue these or is there going to be a delay on that?”

Puffalt said gift certificates should be issued fairly quickly once ticket purchasers can provide some proof of purchase and sign an affidavit they have not already received a refund.

“It’s money out of pocket and we know it has been very frustrating for everybody. So we think we can move fairly quickly,” Puffalt said.

It is unknown how many ticket holders are unable to get refunds and in the end what the final dollar cost will be to Mosaic Place and through them the taxpayers of the City.

Ticket Rocket and the DFFH entered into an agreement on June 14, 2016 to provide ticketing services. Ticket Rocket replaced the service once operated by the Moose Jaw Warriors.

Ticket Rocket was contracted just prior to the departure of Scott Clark the Downtown Facility and Fieldhouse (DFFH) first CEO in August 2016 who was found to have ran losses at the DFFH and hid those losses from the DFFH’s board according to a KPMG audit report released in September 2016. The KPMG report also stated Clark was unable to budget properly, ran the DFFH like his own personal company and did not understand his role fully to be accountable to City Hall.

When the DFFH disolved the contract was inherited by the City.

In a 6 - 1 vote with Councillor Brian Swanson the lone voice opposed the motion passed.