When sports teams look to build a new stadium, it is a huge expense, and getting larger all the time. In light of this fact, owners have tried to find creative ways to finance the stadium to help offset to the cost to them personally. This is why naming rights have been so popular; the company pays the team a lot of money to have their name on the stadium in hopes that the signage and other partnership perks will increase their revenue.
Another way that teams look to increase revenue to offset the financial burden of a stadium is to sell Personal Seat Licenses, of PSL’s. In this scenario, a fan purchases the right have a specific seat in the stadium for the life of the lease. In essence, this is their seat. On top of the license, they are still required to pay for their seat on a per game basis, just like they have been doing in order to maintain their season tickets.
As one can imagine, these decisions are not always popular with fans. They are now required to ‘purchase’ the seat that they have already been paying for. A team is faced with a tough decision regarding PSL’s; if they do them then fans may be upset, but if they do not, they may have to get financing for a stadium through another manner.
PSL’s are being widely used because of the sheer cost of a new stadium. Along with luxury boxes and other rights, they are a way for the team to pay for the upgrade. Fans, on the other hand, feel that their loyalty is not being rewarded when they are asked to pay a lot of money in order to maintain their seats. It is a tough conundrum to be in for any team, but since the stadiums are becoming larger and offering more services and amenities, it is something that is not likely to change anytime soon.
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