Sportslaw Jargon: Personal Seat Licenses

Personal Seat Licenses (PSLs) are a relatively new stadium revenue idea, which involve a separate investment by ticketholders to secure the right to purchase seating at the facility. It has become an effective and popular method to finance new stadiums and arenas, and in some cases, it also serves as an investment to those who participate.

PSL's are an option to generate revenue from individuals making a one-time investment with little or no expectation of future returns. In some ways these licenses resemble stock sales. Ericsson Stadium in Charlotte, N.C., for example, was primarily funded through the sale of PSLs and has served as a model for future PSL plans..

Fans in new markets are willing to pay a premium just to buy a seat. PSLs give fans the lifetime right to purchase season tickets and can cost $25,000. Under the NFL rules, revenues from PSLs do not have to be shared among the teams.