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Apersonal seat license, orPSL, is a paid license that entitles the holder to the right to buyseason tickets for a certain seat in astadium. This holder can sell the seat license to someone else if they no longer wish to purchase season tickets.[1] However, if the seat license holder chooses not to sell the seat licenses and does not renew the season tickets, the holder forfeits the license back to the team. Most seat licenses are valid for as long as the team plays in the current venue.
As each PSL corresponds to a specific seat, the venue operator can charge different prices for each individual seat. From the fan's perspective, having a specific seat removed the necessity of searching for an open seat in a filled stadium. Newly built sporting venues often offer PSLs to help pay the debt incurred during the construction of the venue. Opponents of PSLs see this as another way to increase the price that fans must afford to attend the venue, which may price out a number of fans from a venue.
As an investment PSLs are generally viewed as not being a proper investment or a risky investment as despite PSLs being able to be transferred to sold to other people their value is not guaranteed and can decrease, especially in situations where a team has a period of poor performance and/or the stadium declines in quality or ages causing a decline in demand in tickets and thus PSLs they are also generally considered more valuable in larger, richer markets compared to smaller, poorer ones.[2][3]
Seat licenses have been given various names. InNorth America, they are primarily called personal seat licenses or permanent seat licenses, while inEurope they are usually calleddebentures.
There are varying accounts as to the origin of the personal seat license.
According to one account, the first personal seat license plan was developed in 1986 atStanford University by legendary tennis coachDick Gould.[4][5] Seeking financing for a new tennis stadium, Gould came up with the idea of selling the rights to seats, a licensing plan under which purchaser's name is engraved in the seat, and the purchaser owns the right to have first choice for tickets for any event held in the stadium.[5]
According to a second account, the permanent seat license was invented by aColumbus, Ohio architect, Rick Ohanian, in January 1987. Ohanian described his plan in aLetter to The Editor of theColumbus Dispatch, published on March 2, 1987, entitled "Ticketbond is Answer to Financing Proposed Facility".[6]
According to a third account, the permanent seat license was invented byCharlotte sports marketing agent Max Muhleman, in 1993. Muhleman is credited as the founder of the first PSLs at Charlotte's thenCarolinas Stadium. The idea began as "Charter Seat Rights”, an idea Muhleman suggested toCharlotte Hornets ownerGeorge Shinn as a way to reward those who bought season tickets and helped Shinn get the team in the 1980s. The Hornets' season ticket holders received these rights for free, but people sold them like acommodity. This gave Muhleman the idea to use a similar concept, which fans would pay for, to finance the stadium.[7]
In 1969, the Dallas Cowboys used stadium bonds to finance the construction ofTexas Stadium in Irving. The purchase of the bond entitled the bond holder to purchase season tickets for the Cowboys.[8]
Others cite similar programs that were in existence among many college fund raising activities prior to 1987. However, the early programs were tax-deductible donations to a scholarship fund, in which case the main "quid-pro-quo" was between the donation and the resultant deduction, not between the donation and the actual seating rights.
Some of the teams that have seat licenses include:
In 2019, a U.S. District Judge orderedStan Kroenke and theLos Angeles Rams to issue a partial refund to personal seat license holders of the formerSt. Louis Rams,[11] under the terms of a settlement reached in June 2019. The Los Angeles Rams moved from Los Angeles to St. Louis in 1995[12] and issued personal seat licenses.
Disputes over the condition of theleased venue, and disputes between Rams ownership and St. Louis City leadership ultimately led to the Rams returning to Los Angeles.[13] Fans who had purchased a personal seat license still had 9 years left on their original contract, and filed a class action lawsuit in February 2016.