- Joined
- May 8, 2002
- Posts
- 402,663
- Reaction score
- 43
You must be registered for see images attach
A group of 14 people and three ticket companies sued the Houston Texans and Harris County Sports & Convention Corporation in a state trial court on Monday, accusing the Texans of betraying what are described as longstanding practices to raise prices and limit resale opportunities for holders of permanent seat licenses (PSLs).
In a written statement shared with Sportico, a Texans spokesperson suggested the lawsuit is frivolous.
More from Sportico.com
- There's a Common Misperception About the Supreme Court and NIL
- House v. NCAA Settlement Objections Rebuked by Class Counsel
- NCAA Asks Federal Appeals Court to Intercept Pavia's Eligibility Case
“We were recently made aware of a lawsuit filed by certain ticket resellers,” the spokesperson wrote. “We believe these allegations are meritless and look forward to addressing them appropriately.”
Anthony Beyrouti et al. v. Stadium Fund et al. involves alleged damages that exceed $1 million and accuses the Texans organization of “turning its back” on “long-standing business partners” who were loyal “when times were tough.”
The team has allegedly allotted fewer tickets and charged higher prices for some holders of PSLs, a license that provides a chance to buy a season ticket for each seat in which a license is owed. PSLs are used to boost funding for stadium projects, including for financing of what is now known as NRG Stadium in Houston. According to the complaint, about $40 million of the $367 million needed to build NRG Stadium—which opened in 2002—came through the sale of PSLs.
The plaintiffs are represented by Josh N. Bowlin and other attorneys from Callender Bowlin. They insist that over the last two decades the plaintiffs have collectively spent “hundreds of thousands of dollars” on PSLs, which range in price from the hundreds of dollars to tens of thousands of dollars per seat. The plaintiffs point out they “routinely lost money” when reselling tickets, especially during the “lean years” when the Texans struggled, since they sold tickets for less than what they paid. But the plaintiffs stress they remained loyal.
Further, the plaintiffs contend that for the 2022 and 2023 seasons, they received discounted pricing on account of their “tenured” status via their longstanding association with the team. To that point, the plaintiffs say they were assured of the chance to “secure the best and lowest pricing.”
In recent months, however, the Texans have allegedly betrayed earlier practices and promises.
The complaint references higher prices for season tickets, a downgraded classification from “tenured status” to a lesser designation and a new ticket policy that prohibits the plaintiffs from participating on the official Texans PSL Marketplace, which facilitates buying and reselling.
The complaint also cites an email from a Texans ticket membership executive who warned the plaintiffs of possible “discrepancies” in adherence to PSL terms and conditions related to the use and transfer of PSLs. The plaintiffs say the email offered “ludicrous” statements, since “the Texans have not only known for a very long time that Plaintiffs sell their tickets on the secondary market [and] have encouraged Plaintiffs to purchase more PSLs and non-PSL tickets over the years.”
The complaint contends the Texans have violated the Texas Free Enterprise Act of 1983, a state antitrust law that prohibits anticompetitive conduct. The Team is depicted as unfairly charging the plaintiffs more and restraining the open marketplace for resales. Other claims include breach of contract, fraud and tortious interference, with the plaintiffs insisting they have followed PSL agreements, and the Texans have not.
In the coming weeks, the Texans will answer the complaint, deny wrongdoing and motion for the complaint’s dismissal. The team will likely dispute the facts as presented in the complaint and insist it has followed contractual requirements.
The Texans are likely to assert that price and ticket availability changes are consistent with the ebb and flows of market changes—namely, that as the Texans have played better in recent seasons (10-7 in both the 2024 and 2023 seasons), tickets for games have become more in demand. The team might argue that its offering of discounts in the past does not guarantee them in the future. It’s also possible the Texans will argue the plaintiffs have breached the terms of their PSLs.
Best of Sportico.com
Sign up for Sportico's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.
Continue reading...
