Local news outlets are reporting that a divorcing Toronto couple had a unique asset to consider, when dividing up their assets: two tickets to one of Taylor Swift’s local concerts (which are underway in the city as we speak, on a 6-concert run over two weekends).
It turns out the couple had purchased the tickets during happier times, but realized during their separation process that it was one of the items they had to negotiate over. Part of the challenge would be the tickets’ monetary valuation at the time, because (as media sources also report), they are currently going for up to $13,000 apiece. The couple had reportedly purchased the tickets long ago, when they were nowhere near that staggering price.
The law firm for one of former spouses – which is precluded by solicitor-client privilege from revealing the couple’s identity – recounted that it provided the couple with three options:
- Attend the concert together, despite being separated;
- Allow one of them to buy out the other’s ticket, at current market price; or
- Sell the tickets on the open market, and split the proceeds.
The law firm did not reveal what the couple ultimately decided to do with the tickets.
What would you do?
There are many Canadian divorce cases that feature truly unique assets requiring division. On a related theme, a very recent court ruling from British Columbia involved a couple that owned a highly-profitable ticket-scalping business that had been started by the husband, M.L. The court recounted the origin story of how the business got started, and also provided a glimpse of some of the challenges that this type of business faces:
Ticket Reselling
Showtime
[53] When M.L. was in high school, he worked at the Coliseum at the Pacific National Exhibition. He was intrigued by ticket sellers he saw outside the Coliseum “scalping” event tickets at well above face value. He started doing the same and, despite being threatened and assaulted, he was successful at it.
[54] On May 5, 1995, M.L. incorporated Showtime. … M.L. described Showtime as the first Canadian retail ticket reselling agency. It openly and transparently bought tickets from customers who were selling and resold them to customers who were buying. Prior to Showtime, ticket reselling was considered a shady business done by scalpers. M.L. made efforts to legitimize the industry and was regarded by the media and others as a trusted source of information in respect of ticket reselling.
…
[56] Through M.L.’s commitment and hard work, supported by R.L.’s responsibility for their Children and home, by the time of the 2010 Vancouver Olympics, Showtime had 30 employees.
[57] M.L. testified that he expected to make a lot of money during the Olympics and then retire. That did not happen. Showtime contracted with and paid a supplier for “millions” of Olympic tickets. The supplier defaulted. Showtime had already sold those tickets all over the world. M.L. described how it was standard practice in the ticket reselling industry to sell tickets before they were received.
[58] After the supplier defaulted, Showtime scrambled to find available tickets in the marketplace to deliver on its customer commitments. M.L. described how people were “waving money” at Showtime but it had nothing to sell. Showtime’s accounting system and point of sale website crashed. Customers showed up to pick up tickets that Showtime had no record of them buying.
…
[60] M.L. said he worked 16-18 hours a day to save the business and that he got through it by incredible hard work but at a high cost, “emotionally, financially, and spiritually”.
[61] Fortunately, following the Olympics, the Vancouver Canucks were in a playoff run. Canucks tickets were in high demand and commanded a premium. The team made it to the playoffs in May and June 2011. M.L. said he was able to recoup some of Showtime’s Olympic losses.
Ultimately, in what turned out to be a 400-paragraph judgment, the court went on to scrutinize all of the couple’s extensive assets and many corresponding debts; this included the value of Showtime’s successor company, which was now worth several million dollars on its own. The court used the figures when equalizing the couple’s property during their divorce.
To return for a moment to the Toronto couple that needed to divide up their Taylor Swift tickets: Hopefully they are happy with whatever they decided, even with all the commotion and excitement in the city right now. And if there is any lingering resentment by either of them, hopefully they can just “Shake it Off”.
Full text of the decision: R.L. v M.L., 2024 BCSC 106 (CanLII)
