With both the NFL and fall pumpkin spice latte season in full swing, stadium finance is again welcoming a different kind of PSL — personal seat licenses. A PSL is a one-time license fee that gives the holder the contractual right, and, at times, the obligation, to purchase season tickets for a specific stadium seat. Like the seasonal beverage, these PSLs can attract strong demand, but in stadium financing their draw comes from providing a meaningful source of funding for venue construction costs.

PSLs have been around for more than 20 years, initially rolled out by the most recognizable, iconic, and in-demand franchises — a factor that helped cement their popularity and credibility early on. In North America, PSLs have become an established source of capital, helping to reduce borrowing needs and construction period leverage. While the structure is less prevalent in European football, interest is growing as clubs look for additional sources of capital for stadium redevelopment.

PSLs have become standard in NFL stadium finance, with sale proceeds generating hundreds of millions of dollars for certain projects. PSLs are especially attractive and successful in the NFL for a few reasons: first, the scarcity of home games, with only eight to nine in the regular season, creates demand and supports a higher willingness to pay; second, consumers are more familiar with the structure, with 22 of 32 franchises having used........

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