StubHub president defends 12/12/12 concert resales

StubHub president on 12-12-12 benefit concert
StubHub, the ticket reselling website, is promising to give all its profits from the 12-12-12 concert to charity. StubHub president Chris Tsakalakis speaks to the "CBS This Morning" co-hosts about the event.

(CBS News) Controversy has mounted around ticket sales to Wednesday's 12/12/12 concert to benefit Hurricane Sandy victims, as many criticize scalpers and ticket reselling websites for allowing the resale of benefit concert tickets at extraordinary prices. Some, including New York Senator Chuck Schumer, have called for sites like StubHub to block sellers from profiting from a benefit concert. 

Wednesday on "CBS This Morning," StubHub president Chris Tsakalakis defended the decision to allow concert tickets to be resold on the site, saying, "All the money that StubHub is going to make in terms of our fees and commissions will go to the Robin Hood Relief Fund, who is the beneficiary of the concert."

He added that, "It is perfectly legal to resell tickets in the state of New York and in most states ... we knew ... people were going to resell these tickets whether or not StubHub was going to allow the resale ... so what we decided to do ... is that we would donate our sales, our revenue, our commissions to the Robin Hood Relief Fund."

Tsakalakis also addressed the recently announced secondary market deal between StubHub and Major League Baseball. Several sports teams, including the Los Angeles Angels and the New York Yankees, opted out of the deal.

He explained, "The issue, we think, is about pricing. These teams are very sensitive to market prices for tickets to see their games and they don't like it when tickets on StubHub have prices that are under face value. They feel like they are being undercut."

For more on the 12/12/12 controversy and the Yankees' decision to pull their tickets from StubHub, watch the video above.