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News » Miami Heat sues seat holders who don't pay up: The Miami Heat is suing fans and advertisers who allegedly haven't paid for seats


Miami Heat sues seat holders who don't pay up: The Miami Heat is suing fans and advertisers who allegedly haven't paid for seats


Miami Heat sues seat holders who don't pay up: The Miami Heat is suing fans and advertisers who allegedly haven't paid for seats
Jan. 13--The Miami Heat is putting a full-court press on premium-seat holders and sponsors it claims haven't paid up.

The Heat or affiliate Basketball Properties, which operates the AmericanAirlines Arena, have filed 16 lawsuits in the past year against companies and people they claim owe about $1.6 million -- if not more. At least a few of the cases have been resolved.

The Heat has taken the most litigious approach among South Florida sports franchises to force customers and clients to honor agreements. By comparison, the Florida Panthers and affiliate Arena Operating Co., which operates Sunrise's BankAtlantic Center, filed three suits in 2008 to collect about $100,000.

A search of court records didn't turn up any suits filed by either the Miami Dolphins or Florida Marlins in the past year.

The Heat declined to comment on its suits.

The Heat's actions, though, show that even valuable sports franchises that rake in tens of millions of dollars in revenue each year are not immune to a challenging economic climate.

Real estate developers, realty firms, a mortgage lender, investment companies and a restaurant group are among those targeted by the Heat.

Royal West Properties, a Miami-based land developer, was sued in August for failing to pay almost $41,547 for six seats in Loge Box No. 224 that cost more than $71,000 last season. Ronald Fernandez, the company's lawyer, said the tough economy led to the dispute.

"My client is a service-based company and if money doesn't come in from the people who have to pay, then its trouble," Fernandez said. "Nobody's getting paid. It's tough."

Royal West recently resolved the suit and kept its premium seats, Fernandez said. Asked if the Heat changed the terms of the agreement, which ends after the 2009-2010 season, he replied, "They did work with us." He wouldn't elaborate, however.

The Heat sued the Astri Group, the venture capital firm of convicted Pharmed owners Carlos and Jorge de Cespedes, to collect $55,930 for four eighth-row courtside lounge seats. The suit recently was settled "amicably and confidentially," said Isaac Mitrani, Astri's lawyer. "We no longer have tickets."

Mitrani isn't surprised by the Heat's efforts to get paid. "In today's economic environment, you see businesses across the board trying to collect money they think they're owed," he said.

MIR7, a now-dissolved company that was headed by one-time Marlins catcher Ivan Rodriguez, was sued for $27,020 over four courtside lounge seats that cost more than $86,000 a year.

"In this economic climate, it's unfortunate [the Heat] would choose to be aggressive," said James Lupino, a lawyer representing MIR7.

The AmericanAirlines Arena's latest financial results for the year ended June 30 don't reflect today's troubling times.

Suite and premium-seating sales rose almost 7 percent to $22.7 million -- representing half of the arena's total revenue.

The arena turned a $6 million profit, compared with $6.1 million in 2007.

The team doesn't report its financial results, which include ticket sales, television revenue and players' salaries.

Some of those being sued by the Heat are making an unusual defense for why they didn't pay in full: The team was lousy last season. It finished with the NBA's worst record.

The team "failed to provide a product that it had advertised to the general public" prior to entering the agreement," says Fort Lauderdale resident Deborah Cremer in court documents filed in response to a suit. She admits owing $19,175 on four seats in Loge Box No. 276 that cost about $33,000 last season.

Neither Cremer nor her lawyer responded to requests for comment.

Last year was a lost season for the Heat. Star center Shaquille O'Neal was traded. Guard Dwyane Wade, the face of the franchise, had his season cut short by a recurring knee injury. And Hall-of-Fame coach Pat Riley skipped some games to scout prospects before retiring from coaching.

"They destroyed the team last year," said Carlos Gonzalez. His South End Investments, a condo-conversion company, was sued in November by the Heat.

He estimated he still owes the team about $70,000 on an approximately $250,000 tab for 11 premium seats.

"I told them halfway through the season, cancel my tickets," said Gonzalez, who was unaware the Heat had sued his company. He promised the team he would renew his seats for this season if they refunded money for last season's unused tickets, but it refused, he said.

His three-year seat-licensing agreement expired in June.

"I didn't renew because the economy sucked," he said, adding he's trying to survive the market slide.

It's not the first time sports fans have cited a team's poor performance for trying to back out of season-ticket agreements.

Florida Marlins fans filed two lawsuits seeking refunds after then-team owner H. Wayne Huizenga dismantled the roster on the heels of winning the 1997 World Series. The team lost more than 100 games the following season. Both actions were eventually tossed.

Steven E.M. Hartz, a Miami lawyer who defended the Marlins, said fans can't use a team's performance as an argument for getting their money back.

"The rule of law is that teams do not guarantee a particular result when they sell tickets," Hartz said.

To see more of The Miami Herald or to subscribe to the newspaper, go to http://www.herald.com. Copyright (c) 2009, The Miami Herald Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.


Author:Fox Sports
Author's Website:http://www.foxsports.com
Added: January 13, 2009

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