Timberwolves Hit With Class Action Lawsuit Over Digital Ticket Sales

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Minnesota Timberwolves Basketball LP faces a class action lawsuit over its switch to digital tickets, which the plaintiffs allege make it difficult for fans to exchange tickets or sell them on the secondary market.

The Timberwolves class action lawsuit takes issue with the digital marketplace called Flash Seats, which was founded by Cleveland Cavaliers owner Dan Gilbert. Instead of receiving paper tickets, fans have to use a smart phone or scan their driver’s license or credit card to enter Target Center, at which point a gate worker will print a piece of paper with the fan’s seat number.

According to the digital tickets class action lawsuit, the Timberwolves got rid of paper tickets last year in effort to reduce paper waste and also to make business harder for ticket scalpers. However, plaintiffs GLS Companies and James Mattson argue that the Timberwolves actually implemented this new policy to boost their own business interests.

“This new policy fundamentally, and unlawfully, alters the way Timberwolves ticket holders may use and transfer tickets,” the Timberwolves class action lawsuit states. “Simply put, the new policies were designed to benefit Defendant and harm ticket purchasers.” The plaintiffs state that this new policy imposes “draconian” limitations on ticketholders’ ability to exchange, transfer or sell their tickets.

To make matters worse, the plaintiffs claim, the Timberwolves imposed “harsh re-sale minimums” after season ticket holders had already purchased tickets for the 2015-2016 NBA season. Under the new rules, ticket holders are no longer allowed to sell their tickets for less than an “arbitrarily imposed minimum price,” which the Timberwolves class action lawsuit says is somewhere between 75 and 90 percent of the face value of the ticket.

“Because the Timberwolves have performed so poorly, Plaintiffs and class members have been left holding the bag, since reasonable market purchasers have no interest in paying premium prices for a team mired at the bottom of the conference standings with no hope of making the NBA playoffs,” the Timberwolves class action lawsuit says.

GLS and Mattson are both Timberwolves season ticket holders, and reportedly spent $32,000 and $21,000, respectively, for season tickets during the 2015-2016 NBA season. GLS states that its season tickets were automatically renewed, and that at the time of the renewal, GLS was not informed that it would only receive digital tickets.

“Having control over the tickets, and the ability to sell or give away tickets to games it could not attend, was also an important factor in GLS’ decision to purchase season tickets and an important factor to any rational season ticket holder,” the Timberwolves class action lawsuit says.

Similarly, Mattson claims he was not notified about the move to digital-only tickets when he paid for 2015-2016 Timberwolves season tickets, and that he did not learn of the new ticketing policy until months after his purchase.

Both plaintiffs claim that they purchased their season tickets with the expectation they would be able to give them away or sell them to recoup at least a portion of the ticket’s face value. However, they claim that the policy required them to list their tickets at a price that was too high and that they were therefore unable to sell them.

The plaintiffs allege that the Timberwolves’ digital ticket policy violates contract law, state trade acts and antitrust laws.

The plaintiffs are represented by Brian C. Gudmundson, Wm Dane DeKrey, Hart L. Robinovitch and Caleb Marker of Zimmerman Reed LLP; and Vincent J. Esades and James W. Anderson of Heins Mills & Olson PLC.

The Timberwolves Digital Ticket Sales Class Action Lawsuit is GLS Companies and James Mattson v. Minnesota Timberwolves Basketball LP, Case No. 27-cv-16-2816, in the Fourth Judicial District Court for the State of Minnesota, County of Hennepin.