PSL Holders sue Houston Texans Alleging Fraud, Breach of Contract

Houston Texans home stadium on gameday. (Photo: User eschipul on Flickr, CC BY-SA 2.0 via Wikimedia Commons)

PSL Holders sue Houston Texans Alleging Fraud, Breach of Contract

A group of 19 Permanent Seat License (PSL) holders filed a lawsuit against the Houston Texans, accusing the NFL franchise of fraud, conspiracy, breach of contract and violations of the Texas Free Enterprise Act. The suit, filed in Harris County District Court, alleges the Texans unfairly raised season ticket prices while restricting the plaintiffs’ ability to resell tickets.

According to the complaint, the Texans abruptly reversed two decades of consistent business practices in 2024, charging some PSL holders—those who had owned their licenses for more than 20 years—up to 15% more for the same seats than other PSL holders. The lawsuit alleges this change violated earlier assurances that all PSL holders would receive uniform pricing.

“This outrageous behavior doesn’t just harm the plaintiffs — it harms hundreds of thousands of Texans fans who want to attend games at NRG Stadium,” an attorney for the plaintiffs said in a statement.

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The plaintiffs further claim the Texans withheld invoices from them at the usual renewal time, then reclassified those tickets under “new” pricing tiers with inflated costs. They allege the team’s goal was to pressure longtime PSL holders to abandon their seats so the Texans could resell them at higher rates.

“When times were tough, as they have often been for the Texans, team executives relied on (the) plaintiffs and continuously encouraged them to purchase more tickets,” reads the lawsuit. “Now that the Texans are a playoff-caliber team, they have abandoned these once-valued relationships with individuals they viewed as partners.”

The group is seeking at least $1 million in damages, which could be tripled under Texas law if liability is established. They are also asking for interest, attorney’s fees, and other costs.

In a statement, the Texans denied the allegations. “We were recently made aware of a lawsuit filed by certain ticket resellers. We believe these allegations are meritless and look forward to addressing them appropriately.”

Key Allegations Against the NFL Franchise

  • Discriminatory pricing: PSL holders say they were singled out with higher ticket prices in 2024 and 2025, despite having held their licenses for more than two decades.
  • Loss of ‘tenured’ status: The lawsuit claims the Texans revoked a reduced-pricing benefit long offered to veteran PSL holders.
  • Market manipulation: Plaintiffs allege the Texans inflated secondary market prices by partnering with a preferred reseller and reducing ticket allotments for plaintiffs who sold on other platforms.
  • Retaliation against resellers: The complaint says the team targeted those who resold tickets, barring them from the official PSL Marketplace.
  • Violation of the Free Enterprise Act: Plaintiffs argue that by limiting competition in resale and inflating prices, the Texans hurt consumers seeking affordable game tickets.

This lawsuit is one of many that have accompanied a growing trend in fan pushback when teams impose policies that hamper the ability to resell tickets or dramatically increase prices without warning.

In one notable example, the New York Yankees settled a lawsuit filed over their cancellation of multiple season ticket accounts over the resale of tickets associated with those accounts – which directly violates state law. The Los Angeles Dodgers also faced legal action when they cancelled hundreds of season ticket accounts over resale – only to bundle those tickets to resell through a preferred partner. More recently the Vancouver Canucks were accused of a “cash grab” in similarly purging season ticket accounts in order to take advantage of the resale value of their tickets directly.

If the court rules in favor of the plaintiffs—and especially if damages are tripled under Texas law—it could send a strong signal to other organizations that attempt to restructure ticket pricing at the expense of PSL holders. For now, the Texans dispute all claims, and the case will likely hinge on whether the plaintiffs can prove that the team deliberately targeted and overcharged them in violation of prior agreements and state law.

No trial date has been set, but both sides appear ready for a protracted legal battle that may offer broader lessons for teams and PSL holders across professional sports.

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