MSG Vs. Resellers

Ticket resellers S4K Entertainment Group and J.A.J. Executive Services filed a lawsuit against Madison Square Garden’s corporate entity in New York County Supreme Court May 5, according to Courthouse News.

In 2007, New York updated its Art and Cultural Affairs Law to stop venues from revoking season tickets based on resale, a change that boosted the market for sporting and theatrical events. This change led to the creation of resellers that – like the plaintiffs – sold the arena’s tickets to individuals, corporations and Fortune 500 companies, Courthouse News said.

The resellers say that the Garden knew about their businesses, and cultivated a relationship with them before announcing a “sudden policy shift” March 30 that limits the number of Knicks and Rangers subscriptions that could be “controlled” by any “single customer.” Garden officials allegedly told the resellers: “No single customer will be able to purchase, manage or control more than eight (8) season tickets (directly or indirectly).”

When the Garden determined account holders went over that number, arena officials threatened to revoke the opportunity to renew these seats, according to the lawsuit. S4K says that the Garden also clamped down on season-ticket holders that used its services.

“Needless to say, plaintiffs’ clients were distressed to have received notice from MSG that their tickets were not being renewed because of their purported connection to S4K,” the News said. The Garden’s spokeswoman, Kimberly Kerns, said in a statement the lawsuit was “without merit.”

“Our ticket policy simply limits the amount of tickets an individual can own or control in order to give many more fans access to Knicks and Rangers games,” according to the News.