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Ticketmaster beats Cavaliers in ticketing lawsuit
AP
CLEVELAND (AP) — The Cleveland Cavaliers have lost a contest in the court of law.
A federal judge ruled that the Cavaliers must stop allowing season ticketholders to resell tickets through the Flash Seats Web site because it violates the team’s contract with Ticketmaster Inc.
U.S. District Judge Kathleen M. O’Malley sided with West Hollywood, Calif.-based Ticketmaster’s claim that its primary-ticketing contract with the Cavaliers gave it exclusive rights to handle all the team’s ticket sales. O’Malley made the ruling Tuesday and will decide on damages later.
Primary ticketing involves tickets sold from a team to a consumer. Secondary ticketing is the resale of tickets by a consumer or broker.
The Cavaliers are owned by Dan Gilbert, who is also the principal owner of Flash Seats. Cavaliers President Len Komoroski said the organization respects the judge’s decision but was disappointed.
‘‘We’re currently considering our legal position and options for the future and look forward to continuing our relationship with Flash Seats, just as soon as our agreement with Ticketmaster comes to a close,’’ Komoroski said in a statement.
The Cavaliers’ contract with Ticketmaster expires in July 2010, according to a court document.
Samuel Gerace, chief executive of Flash Seats owner Veritix called the Web site ‘‘a platform that is a clear threat to its competitors.’’
‘‘This is by no means the end for Flash Seats and the Cavaliers,’’ he said. ‘‘We have worked very hard to develop and market a technology that provides the most convenient, secure and free market e-commerce platform for sports teams and leagues.’’
The team will continue to use Flash Seats to allow fans to transfer tickets to other fans at no charge. The judge did not rule on the Cavaliers and Flash Seats’ antitrust claim against Ticketmaster.
A federal judge ruled that the Cavaliers must stop allowing season ticketholders to resell tickets through the Flash Seats Web site because it violates the team’s contract with Ticketmaster Inc.
U.S. District Judge Kathleen M. O’Malley sided with West Hollywood, Calif.-based Ticketmaster’s claim that its primary-ticketing contract with the Cavaliers gave it exclusive rights to handle all the team’s ticket sales. O’Malley made the ruling Tuesday and will decide on damages later.
Primary ticketing involves tickets sold from a team to a consumer. Secondary ticketing is the resale of tickets by a consumer or broker.
The Cavaliers are owned by Dan Gilbert, who is also the principal owner of Flash Seats. Cavaliers President Len Komoroski said the organization respects the judge’s decision but was disappointed.
‘‘We’re currently considering our legal position and options for the future and look forward to continuing our relationship with Flash Seats, just as soon as our agreement with Ticketmaster comes to a close,’’ Komoroski said in a statement.
The Cavaliers’ contract with Ticketmaster expires in July 2010, according to a court document.
Samuel Gerace, chief executive of Flash Seats owner Veritix called the Web site ‘‘a platform that is a clear threat to its competitors.’’
‘‘This is by no means the end for Flash Seats and the Cavaliers,’’ he said. ‘‘We have worked very hard to develop and market a technology that provides the most convenient, secure and free market e-commerce platform for sports teams and leagues.’’
The team will continue to use Flash Seats to allow fans to transfer tickets to other fans at no charge. The judge did not rule on the Cavaliers and Flash Seats’ antitrust claim against Ticketmaster.
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