The New York Giants and Jets were sued by a fan who claims the football teams are illegally forcing thousands of season-ticket holders to buy personal seat licenses to finance a new $1.6 billion stadium.
The teams are violating competition law by requiring at least 45,000 season-ticket holders to make one-time payments of $1,000 to $25,000 for the permanent right to buy future season tickets, according to a proposed class-action, or group, lawsuit filed March 16 in federal court in Newark, New Jersey. The teams allegedly plan to confiscate the PSLs if fans stop buying season tickets after the National Football League arena opens in 2010.
The Jets and Giants “fixed the prices for PSLs and 2010 season tickets at artificial, supra-competitive prices that were established by defendants to maximize near-term revenue and profits,” Harold Oshinsky, a retiree who has held Giants season tickets for 30 years, said in the 76-page complaint.
The football teams are four months ahead of schedule on the new arena next to the current stadium they share in East Rutherford, New Jersey. The PSLs were used as a last resort to raise money for the 82,500-seat stadium, Giants co-owner John Mara said in a statement last year.
“Given construction costs and NFL and lender requirements for paying down our debt, and after much thought and analysis, we decided this PSL program is necessary,” Mara said.
Representatives from both teams said today they’re confident the PSLs are fully legal.
“We have complied with all applicable law in the formulation and execution of our sales plan for the new stadium,” Pat Hanlon, a Giants spokesman, said in an e-mail.
‘Fully Compliant’
Bruce Speight, a Jets spokesman, said in a phone interview that his team is “fully compliant with all laws and regulations related to the sale of these licenses, and we expect that this matter will be resolved in our favor.”
Oshinsky’s lawyer, Andrew Friedman, said the teams should not be allowed to force fans to accept “onerous” PSL terms. He said the licenses unfairly require fans to buy season tickets regardless of the price through at least 2025 and can be taken away without reimbursement.
“We’re arguing the practice is, and should be, illegal,” Friedman, of Glancy Binkow & Goldberg LLP in New York, said today in a phone interview. “If you buy a PSL and the team decided to jack up the ticket prices, you’d be helpless.”
Oshinsky, who also has held Jets season tickets for about 25 years, seeks a court order forcing the teams to disclose projected season-ticket prices after 2010, and to tie price increases to the cost-of-living index for the New York metropolitan area. He also wants the teams to buy back at “current fair-market value” PSLs from fans who are unwilling or unable to purchase season tickets.
‘Only a Monopolist’
Anything less is unfair to fans and violates state business laws, Oshinsky said in the complaint.
“They’re saying that in order to continue to purchases season tickets, you must buy this additional product they created, a PSL,” Friedman said. “Only a monopolist could do that.”
The lawsuit comes less than two weeks after the Jets asked some office and support employees to take two weeks of unpaid leave to save money. The Giants and Jets each borrowed $650 million for their share of the venue.
Amenities at the new stadium will include areas for corporate sponsors, about 200 luxury suites, four video boards -- each about 100-by-30 feet -- and “Coach’s Club” seats behind the team’s bench with access to a private bar and lounge.
The case is Oshinsky v. New York Football Giants Inc., 2:09-cv-01186, U.S. District Court, District of New Jersey (Newark).
(Source: Bloomberg)
