LAS VEGAS (CelebrityAccess) — The Las Vegas-based NHL team The Golden Knights have sued secondary ticketing site StubHub over resale profits from their debut season.
According to the Las Vegas Review-Journal, the team on Thursday filed a complaint against StubHub, alleging that StubHub owns the team $1.5 million in profits from post-season ticket sales.
The civil complaint filed by the team claims that once they made the playoffs, they offered season ticket holders access to post-season tickets at two price points, including at a 40% discount if the fans took a ‘Knights vow’ not to resell their tickets.
However, the team alleges that StubHub threated to take “any and all necessary actions” including turning off the team’s StubHub market integrations if they did not make the restricted tickets available for sale.
“Such actions would have encouraged ticket holders to break the Knights Vow-an enforceable contract for the licenses (tickets) between VGK (The Knights) and patrons. StubHub’s ultimatum threatened to turn VGK’s historic inaugural season from an experience that encouraged fan loyalty and hometown spirit into a scalping money-grab,” the team said in their complaint.
The team also accused StubHub of failing to make monthly accountings of profits from secondary sales and failed to make timely make monthly payments to the team during the entire term of their contractual relationship.
Interestingly, much of the court filing is redacted at the request of the team, in a bid to protect the financial details of their deal with StubHub. The court filing also requests that multiple evidentiary exhibits from their filing should be sealed as they expose important trade secrets.
Reps from both the Golden Knights and StubHub did not respond to a request for comment.