Permanent Seat Licenses (PSLs) as an Emerging Source of Revenue Production

Abstract

Permanent Seat Licenses (PSLs) have emerged as a popular form of financing among sport team owners, leagues, municipal authorities, and taxpayers. Seat licenses, which allow purchasers access to venue event season tickets, have become revenue-producing mechanisms in the world of stadium economics. This paper examines the origins of seat licensing, the role of seat licensing in the financing of major stadia, and their ultimate benefit to team/venue managers, municipal authorities, and taxpayer. Proposals are made for the successful implementation and management of seat licensing schemes, as are strategies for their future evolution as revenue sources, particularly, for sport organizations located in multipurpose arenas.