Judge Rules Cavs' Flash Seats Use Violates Ticketmaster Contract
U.S. District Judge Kathleen O'Malley last Tuesday ruled that the Cavaliers' use of Flash Seats "violates Ticketmaster's exclusive contract with" the team, according to Peter Krouse of the Cleveland PLAIN DEALER. The Cavaliers "had been offering the use of Flash Seats to season ticket holders as a secure venue for reselling their season tickets online." Details of the ruling are forthcoming, but the Cavaliers "believe the judge has not restricted other Flash Seats functions, namely services that provide ticketless entry into [Quicken Loans Arena] and the transfer of tickets electronically to others." Cavaliers and Quicken Loans Arena President Len Komoroski, in a statement, said, "Obviously, this technology has rocked the ticketing world and is seen as a clear threat to competitors." Krouse noted the Cavaliers "are considering an appeal." Ticketmaster has been with the team since '93, and the current contract expires at the end of the '09-2010 NBA season (Cleveland PLAIN DEALER, 10/2). Veritix President Jeff Kline, whose company owns Flash Seats, said that Veritix is “contemplating an appeal of the ruling.” Kline: "Our attorneys are looking into that possibility." Kline said in a statement, "We believe, as do the [Cavaliers], that teams should have the ability to choose how best to serve their ticket holders and enhance the fan experience, and are exploring our legal options" (TICKETNEWS.com, 10/4).
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