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SALT LAKE CITY (AP) -- A group of well-heeled Utah Jazz fans has sued the team's corporate parent, claiming a new seating policy has caused their VIP seats to plummet in value by taking away their exclusive ownership rights.
Members of the Jazz 100 Club are seeking more than $19 million in damages. They filed their complaint filed Friday in 3rd District Court.
The dispute stems from a January policy change allowing all season-ticket holders to also transfer ownership rights to their seats in EnergySolutions Arena.
Under the new Transfer Marketplace program, their rights to seats can be transferred through an exchange operated by the Jazz, which receives 30 percent of the sale price.
Previously, only 220 courtside seats that were held by the 50 to 60 club members could be sold or bequeathed, an exclusivity that increased their value.
Since early this year, the value of seats held by club members has plunged 90 percent, causing an overall loss of $16 million, the suit says.
Club president Alan Melchior said seat positions that once sold for as much as $200,000 now go for $20,000.
"This is a major windfall for season ticket holders because they have not paid for the benefit," Melchior told the Deseret News. "This makes a huge difference. It negates the value of the seat positions."
Jazz spokeswoman Linda Luchetti said the team takes the matter seriously and its legal department is reviewing the suit. But she declined further comment.
Lawyer Peggy A. Tomsic, who represents the plaintiffs, told the Salt Lake Tribune she's still hopeful the team "will reverse course and honor the promises it made to the Utah Jazz's most committed and proud supporters."
According to the complaint, club members are "some of the most successful and influential individuals and companies in Utah, who have paid millions of dollars for their memberships."
The suit says late Jazz owner Larry H. Miller created the club in 1987 to raise capital during a time of financial need.
Club members also allege the Jazz overbilled them by millions of dollars for benefits such as meals and trips.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
