A personal seat license, or PSL, is a paid license that entitles the holder to the right to buy
season ticket
A season ticket, or season pass, is a ticket that grants privileges over a defined period of time.
History
The ''Oxford English Dictionary'' has illustrative quotations which show the term ''season ticket'' used in the United States in 1820 ...
s for a certain seat in a
stadium
A stadium ( : stadiums or stadia) is a place or venue for (mostly) outdoor sports, concerts, or other events and consists of a field or stage either partly or completely surrounded by a tiered structure designed to allow spectators to stand o ...
. This holder can sell the seat license to someone else if they no longer wish to purchase season tickets.
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.
Seat licenses have been given various names. In
North America
North America is a continent in the Northern Hemisphere and almost entirely within the Western Hemisphere. It is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the southeast by South America and the Car ...
, they are primarily called personal seat licenses or permanent seat licenses, while in
Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...
they are usually called
debentures
In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowle ...
.
Origin of seat licenses
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 at
Stanford University
Stanford University, officially Leland Stanford Junior University, is a private research university in Stanford, California. The campus occupies , among the largest in the United States, and enrolls over 17,000 students. Stanford is consider ...
by legendary tennis coach
Dick Gould
Dick Gould is an American tennis coach. He was the Men's Tennis Coach at Stanford University for 38 years from 1966–2004. His Stanford men's tennis teams won 17 NCAA Men's Tennis Championships, and 50 of his players won All-American honors. ...
.
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.
[
According to a second account, the permanent seat license was invented by a ]Columbus, Ohio
Columbus () is the state capital and the most populous city in the U.S. state of Ohio. With a 2020 census population of 905,748, it is the 14th-most populous city in the U.S., the second-most populous city in the Midwest, after Chicago, and t ...
architect, Rick Ohanian, in January 1987. Ohanian described his plan in a ''Letter to The Editor'' of the ''Columbus Dispatch
''The Columbus Dispatch'' is a daily newspaper based in Columbus, Ohio. Its first issue was published on July 1, 1871, and it has been the only mainstream daily newspaper in the city since ''The Columbus Citizen-Journal'' ceased publication in 1 ...
'', published on March 2, 1987, entitled "Ticketbond is Answer to Financing Proposed Facility".[Hill, Jemele. "Personal seat licenses, rising ticket prices spell doom," ESPN Page 2, Monday, August 4, 2008.](_blank)
/ref>
According to a third account, the permanent seat license was invented by Charlotte
Charlotte ( ) is the List of municipalities in North Carolina, most populous city in the U.S. state of North Carolina. Located in the Piedmont (United States), Piedmont region, it is the county seat of Mecklenburg County, North Carolina, Meckl ...
sports marketing agent Max Muhleman, in 1993. Muhleman is credited as the founder of the first PSLs at Charlotte's then Carolinas Stadium. The idea began as "Charter Seat Rights”, an idea Muhleman suggested to Charlotte Hornets
The Charlotte Hornets are an American professional basketball team based in Charlotte, North Carolina. The Hornets compete in the National Basketball Association (NBA) as a member of the league's Eastern Conference Southeast Division, and pla ...
owner George Shinn
George Shinn (born May 11, 1941) is the former owner of the Charlotte/New Orleans Hornets, as well as the Charlotte Knights and Gastonia Rangers minor league baseball teams, along with the Raleigh–Durham Skyhawks, of the World League of Americ ...
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 a commodity
In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.
The price of a comm ...
. This gave Muhleman the idea to use a similar concept, which fans would pay for, to finance the stadium.
In 1969, the Dallas Cowboys used stadium bonds to finance the construction of Texas Stadium
Texas Stadium was an American football stadium located in Irving, Texas, a suburb west of Dallas. Opened on October 24, 1971, it was known for its distinctive hole in the roof, the result of abandoned plans to construct a retractable roof (Cowboy ...
in Irving. The purchase of the bond entitled the bond holder to purchase season tickets for the Cowboys.
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.
Sports teams and organizations employing seat licenses
Some of the teams that have seat licenses include:
Automotive racing
*Auto Club Speedway
Auto Club Speedway, originally opened as California Speedway, is a , low-banked, D-shaped oval superspeedway in unincorporated San Bernardino County, California, near Fontana. It has hosted NASCAR racing annually since 1997. It was also previ ...
PSL
*Circuit of the Americas
Circuit of the Americas (COTA) is a Grade 1 FIA-specification motor racing track and facilities located within the extraterritorial jurisdiction of Austin, Texas, in the United States. The facility is home to the Formula One United States Grand ...
PSL
*Kentucky Speedway
Kentucky Speedway is a tri-oval speedway in Sparta, Kentucky, which has hosted ARCA, NASCAR and Indy Racing League racing annually since it opened in 2000. The track is currently owned and operated by Speedway Motorsports, Inc. Before 2008 J ...
PSL
*Texas Motor Speedway
Texas Motor Speedway is a speedway located in the northernmost portion of the U.S. city of Fort Worth, Texas – the portion located in Denton County, Texas. The reconfigured track measures with banked 20° in turns 1 and 2 and banked 24° ...
PSL
Major League Baseball
*Arizona Diamondbacks
The Arizona Diamondbacks (colloquially known as the D-backs) are an American professional baseball team based in Phoenix. The Diamondbacks compete in Major League Baseball (MLB) as a member club of the National League (NL) West division. The f ...
Legacy Club Seat Licenses
*Minnesota Twins
The Minnesota Twins are an American professional baseball team based in Minneapolis. The Twins compete in Major League Baseball (MLB) as a member club of the American League (AL) Central Division. The team is named after the Twin Cities area w ...
Legends Club Memberships (effective at Target Field
Target Field is a baseball stadium in the historic warehouse district of downtown Minneapolis. Since its opening in 2010, the stadium has been the home ballpark of Major League Baseball's Minnesota Twins. The stadium hosted the 2014 Major Leag ...
only)
*San Diego Padres
The San Diego Padres are an American professional baseball team based in San Diego. The Padres compete in Major League Baseball (MLB) as a member club of the National League (NL) West division. Founded in 1969, the club has won two NL penna ...
Founders Club Memberships
*San Francisco Giants
The San Francisco Giants are an American professional baseball team based in San Francisco, California. The Giants compete in Major League Baseball (MLB) as a member club of the National League (NL) West division. Founded in 1883 as the New Yor ...
CSL Charter Seat Licenses
*St. Louis Cardinals
The St. Louis Cardinals are an American professional baseball team based in St. Louis. The Cardinals compete in Major League Baseball (MLB) as a member club of the National League (NL) Central division. Since the 2006 season, the Cardinals ha ...
Ballpark Founders Club Seat Licenses
National Basketball Association
*Charlotte Hornets
The Charlotte Hornets are an American professional basketball team based in Charlotte, North Carolina. The Hornets compete in the National Basketball Association (NBA) as a member of the league's Eastern Conference Southeast Division, and pla ...
PSL
* Golden State Warriors
The Golden State Warriors are an American professional basketball team based in San Francisco. The Warriors compete in the National Basketball Association (NBA), as a member of the league's Western Conference Pacific Division. Founded in 194 ...
Membership
** Instituted in 2017 for all season tickets at the team's future home of Chase Center
Chase Center is an indoor arena in the Mission Bay neighborhood of San Francisco, California. The building is the home venue for the Golden State Warriors of the National Basketball Association (NBA) and occasionally for the University of San ...
, opening in 2019. The Warriors became the first NBA team with a broad-based PSL. The PSL, which runs for 30 years, can either be given back to the team or transferred at any time, although it cannot be sold for more than its face value, prorated for the number of years remaining on the license. At the end of the license period, the face value of the license will be returned to the original owner (or heirs) if it has never been transferred. If the license is transferred, the team must be notified of the price; if the price paid falls short of the full price less payments already made, the team will return the difference to the original owner at the end of the license period. The PSL operates as an interest-free loan to the team.
*Toronto Raptors
The Toronto Raptors are a Canadian professional basketball team based in Toronto. The Raptors compete in the National Basketball Association (NBA) as a member of the league's Eastern Conference Atlantic Division. They play their home games a ...
PSL
** Used only for the best seats at Scotiabank Arena
Scotiabank Arena ( French: ''Aréna Scotiabank)'', formerly known as Air Canada Centre (ACC), is a multi-purposed arena located on Bay Street in the South Core district of Downtown Toronto, Ontario, Canada. It is the home of the Toronto Rap ...
; also provides rights for Maple Leafs tickets.
*Utah Jazz
The Utah Jazz are an American professional basketball team based in Salt Lake City. The Jazz compete in the National Basketball Association (NBA) as a member of the league's Western Conference (NBA), Western Conference, Northwest Division (NBA), ...
PSL
** Instituted in 1987 by then-owner Larry Miller only for courtside seats at the Salt Palace
The Calvin L. Rampton Salt Palace Convention Center, more commonly known as the Salt Palace, is a convention center in Salt Lake City, Utah. Named after Utah's 11th governor, Calvin L. Rampton, the name "Salt Palace" was previously used by two ...
, with the upfront money used for team expenses. Not used at the team's current home of Vivint Smart Home Arena
Vivint Arena (stylized as vivint arena), formerly known as Delta Center, EnergySolutions Arena and Vivint Smart Home Arena, is an indoor arena located in Salt Lake City, Utah. The arena serves as the home venue for the National Basketball Assoc ...
.
National Football League
*Atlanta Falcons
The Atlanta Falcons are a professional American football team based in Atlanta. The Falcons compete in the National Football League (NFL) as a member club of the league's National Football Conference (NFC) South division. The Falcons joined th ...
PSL
*Baltimore Ravens
The Baltimore Ravens are a professional American football team based in Baltimore, Maryland. The Ravens compete in the National Football League (NFL) as a member club of the American Football Conference (AFC) North division. The team plays its ...
PSL
*Carolina Panthers
The Carolina Panthers are a professional American football team based in Charlotte, North Carolina. The Panthers compete in the National Football League (NFL), as a member club of the league's National Football Conference (NFC) South division. T ...
PSL
*Chicago Bears
The Chicago Bears are a professional American football team based in Chicago. The Bears compete in the National Football League (NFL) as a member club of the league's National Football Conference (NFC) North division. The Bears have won nine NF ...
PSL
*Cincinnati Bengals
The Cincinnati Bengals are a professional American football team based in Cincinnati. The Bengals compete in the National Football League (NFL) as a member club of the league's American Football Conference (AFC) AFC North, North division. The c ...
COA (Charter Ownership Agreements)
*Cleveland Browns
The Cleveland Browns are a professional American football team based in Cleveland. Named after original coach and co-founder Paul Brown, they compete in the National Football League (NFL) as a member club of the American Football Conference ( ...
PSL
*Green Bay Packers
The Green Bay Packers are a professional American football team based in Green Bay, Wisconsin. The Packers compete in the National Football League (NFL) as a member club of the National Football Conference (NFC) NFC North, North division. It ...
as a User Fee
*Dallas Cowboys
The Dallas Cowboys are a professional American football team based in the Dallas–Fort Worth metroplex. The Cowboys compete in the National Football League (NFL) as a member club of the league's National Football Conference (NFC) East divisi ...
SL (Seat Licenses) (Effective at AT&T Stadium
AT&T Stadium, formerly Cowboys Stadium, is a retractable roof, retractable-roof stadium in Arlington, Texas, United States. It serves as the home of the Dallas Cowboys of the National Football League (NFL), and was completed on May 27, 2009. I ...
only.)
*Houston Texans
The Houston Texans are a professional American football team based in Houston. The Texans compete in the National Football League (NFL) as a member club of the American Football Conference (AFC) AFC South, South division, and play their home ga ...
PSL
*Los Angeles Chargers
The Los Angeles Chargers are a professional American football team based in the Los Angeles metropolitan area. The Chargers compete in the National Football League (NFL) as a member of the American Football Conference (AFC) West division, and ...
SSL (Stadium Seat License)
*Los Angeles Rams
The Los Angeles Rams are a professional American football team based in the Los Angeles metropolitan area. The Rams compete in the National Football League (NFL) as a member of the National Football Conference (NFC) West division. The Rams play ...
SSL (Stadium Seat License)
*Minnesota Vikings
The Minnesota Vikings are a professional American football team based in Minneapolis. They compete in the National Football League (NFL) as a member club of the National Football Conference (NFC) North division. Founded in 1960 as an expansion ...
SBL (Stadium Builder Licenses) (U.S. Bank Stadium
U.S. Bank Stadium is an enclosed stadium located in downtown Minneapolis, Minnesota. Built on the former site of the Hubert H. Humphrey Metrodome, the indoor stadium opened in 2016 and is the home of the Minnesota Vikings of the National Footbal ...
only)
*New York Giants
The New York Giants are a professional American football team based in the New York metropolitan area. The Giants compete in the National Football League (NFL) as a member club of the league's National Football Conference (NFC) East division. ...
PSL (Effective at MetLife Stadium
MetLife Stadium is a multi-purpose stadium at the Meadowlands Sports Complex in East Rutherford, New Jersey, 5 mi (8 km) west of New York City. Opened in 2010 to replace Giants Stadium, it serves as the home for the New York Giants an ...
only. Buying Giants PSL does not give ticket rights for the Jets.)
*New York Jets
The New York Jets are a professional American football team based in the New York metropolitan area. The Jets compete in the National Football League (NFL) as a member club of the league's American Football Conference (AFC) East division. The J ...
PSL (Effective at MetLife Stadium
MetLife Stadium is a multi-purpose stadium at the Meadowlands Sports Complex in East Rutherford, New Jersey, 5 mi (8 km) west of New York City. Opened in 2010 to replace Giants Stadium, it serves as the home for the New York Giants an ...
only. Policies differ from the Giants. Buying Jets PSL does not give ticket rights for the Giants.)
*Philadelphia Eagles
The Philadelphia Eagles are a professional American football team based in Philadelphia. The Eagles compete in the National Football League (NFL) as a member club of the league's National Football Conference (NFC) East division. The team plays ...
SBL (Stadium Builder Licenses)
*Pittsburgh Steelers
The Pittsburgh Steelers are a professional American football team based in Pittsburgh. The Steelers compete in the National Football League (NFL) as a member club of the American Football Conference (AFC) North division. Founded in , the Steel ...
SL
*San Francisco 49ers
The San Francisco 49ers (also written as the San Francisco Forty-Niners) are a professional American football team based in the San Francisco Bay Area. The 49ers compete in the National Football League (NFL) as a member of the league's National ...
SBL (Stadium Builder Licenses)
*Seattle Seahawks
The Seattle Seahawks are a professional American football team based in Seattle. The Seahawks compete in the National Football League (NFL) as a member club of the league's National Football Conference (NFC) West, which they rejoined in 2002 as ...
CSL (Charter Seat Licenses)
*Las Vegas Raiders
The Las Vegas Raiders are a professional American football team based in the Las Vegas metropolitan area. The Raiders compete in the National Football League (NFL) as a member club of the league's American Football Conference (AFC) West divis ...
PSL
*Tennessee Titans
The Tennessee Titans are a professional American football team based in Nashville, Tennessee. The Titans compete in the National Football League (NFL) as a member club of the American Football Conference (AFC) South division, and play their h ...
PSL
National Hockey League
*Columbus Blue Jackets
The Columbus Blue Jackets (often simply referred to as the Jackets) are a professional ice hockey team based in Columbus, Ohio. They compete in the National Hockey League (NHL) as a member of the Metropolitan Division in the Eastern Conference, ...
PSL
*Toronto Maple Leafs
The Toronto Maple Leafs (officially the Toronto Maple Leaf Hockey Club and often referred to as the Leafs) are a professional ice hockey team based in Toronto. They compete in the National Hockey League (NHL) as a member of the Atlantic Div ...
PSL
National Rugby League
*Gold Coast Titans
The Gold Coast Titans are a professional rugby league football club, based on the Gold Coast, Queensland, Australia. The club competes in the National Rugby League (NRL), Australia and New Zealand's national rugby league club competition. The ...
PSR (Personal Seat Right)
PSL Lawsuit
In 2019, a U.S. District Judge ordered Stan Kroenke
Enos Stanley Kroenke (; born July 29, 1947) is an American billionaire businessman. He is the owner of Kroenke Sports & Entertainment, which is the holding company of Arsenal F.C. of the Premier League and Arsenal W.F.C. of the WSL, the Los ...
and the Los Angeles Rams
The Los Angeles Rams are a professional American football team based in the Los Angeles metropolitan area. The Rams compete in the National Football League (NFL) as a member of the National Football Conference (NFC) West division. The Rams play ...
to issue a partial refund to personal seat license holders of the former St. Louis Rams
The St. Louis Rams were a professional American football team of the National Football League (NFL). They played in St. Louis from 1995 to the 2015 season, before moving back to Los Angeles, where the team had played from 1946 to 1994.
The arr ...
, under the terms of a settlement reached in June 2019. The Los Angeles Rams moved from Los Angeles to St. Louis in 1995 and issued personal seat licenses.
Disputes over the condition of the leased venue, and disputes between Rams ownership and St. Louis City leadership ultimately led to the Rams returning to Los Angeles. 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.
See also
*Debenture (sport)
In sport, a debenture is defined as a certificate of agreement of loans which is given under the company's stamp and carries an undertaking that the debenture holder will get a fixed return (fixed on the basis of interest rates) and the princi ...
References
{{reflist
Sports terminology
Sports venues