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Would-be Predators group meets with Dean, Lavender
The local investors group that is seeking to purchase the Nashville Predators began direct negotiations with Mayor Karl Dean late last week.
Representatives of the group met with Sports Authority chairman Kevin Lavender on Friday and then with Mayor Karl Dean later that evening to discuss a modified set of proposed changes to the lease the Predators have with Metro for using the arena. Details have still not been made public.
The group must clinch the sale by Oct. 31 or else current Predators owner Craig Leipold can keep the $10 million non-refundable deposit the group has given him and sell the team to another buyer. Legislation to make the changes, if agreed to by Dean and the group, must be filed with the Metro Council office by noon this Friday in order to be placed on the Council’s Oct. 16 agenda for the Council’s last meeting of the month. The Sports Authority must approve the changes prior to the Council.
David Freeman, the businessman leading the investors group, declined in a Sunday interview with The City Paper to comment on the specifics of the new proposal that was given to Dean on Friday, but he reiterated what he told the Metro Sports Authority in late September — that the group has proposed capping the subsidy Metro provides the arena’s management firm annually in order to compensate for the arena’s operating deficit. The cap would sit at about $3.8 million.
As Freeman has emphasized before, there is currently no cap on Metro’s operating subsidy to the arena. He said the $3.8 million is the amount of the subsidy in 2006. Former Metro Finance Director David Manning has previously said this amount was actually more than $5 million, but Freeman says this included capital costs Metro would have to pay whether or not the arena faced an operating deficit.
“I think the biggest conceptual change is that there has been a much greater shifting of risk from the city to the Predators. And that was the basis of the changes in what we presented to Mayor Dean Friday. In the prior proposal, the city was going to guarantee the purchase of 14,000 tickets, and in the prior proposal the city was going to guarantee the team an additional $3 million in public money,” Freeman said.
In August, when the group’s original set of lease proposals was presented to former Mayor Bill Purcell, the group said the changes would cost Metro about $3 million more annually than what Metro currently pays to subsidize the team.
Freeman yesterday said simply that the new proposal does not demand an extra $3 million payment outright from Metro but relies solely on revenue generated by customers at the arena.
The new proposal “will definitely cost the city more” than what it currently pays to subsidize the Predators and the arena, Freeman said, “but we’re trying to tie it in and show that the city is actually getting a lot more revenue than [David Manning was] admitting.”
Manning’s analysis of the first set of lease changes said the management firm of the arena, under the proposed changes, would receive all ticket surcharge and sales tax revenue generated in the arena above fiscal year 2006 proceeds under the proposals. That extra amount would have totaled to about $1 million this past fiscal year.
Local attorney James Weaver, who represents the investors group, said at the time the group had suggested sharing the increment proceeds with Metro, something Manning didn’t figure into his number.
Weaver said then the group hopes to boost the number of non-hockey events at the arena by 30-45 events annually and said sharing the revenue derived from the new events would be to Metro’s benefit. In August, the group requested a set of new financial incentives to help it do this along with several million dollars to make some capital improvements to the arena.
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The new proposal “will definitely cost the city more” than what it currently pays to subsidize the Predators and the arena, Freeman said, I do hope if they try to fleece us an attorney will step forward and file an action on behalf of WE THE TAXPAYERS.
If the hockey fans can't support the team then let the team go wherever it can get adequate support. If the arena costs we taxpayers $5 million per year then put a wrecking ball to it and give downtown additional convenient parking at the site.
Muzhik,why would anyone do a sensible thing like what you propose?
Let the whining begin.......
give away your own money titian not ours.
Bredesen was a good Mayor. At the time this arena was proposed and built Bredesen had no idea that the Houston Oilers were a possibility....Obviously when he found out that the Oilers could come to town he jumped on it...I am sure that had he known that the Oilers were a possibility he would have never built this ice hockey arena(for lack of a better word) Now we have a sport in town supported by probably no more than 6,000 Davidson Countians which is costing us the price of a new elementary school every year or new books,new libraries,community centers,and etc. Why are Predators an issue at all. Why are the people of Davidson County being asked for MORE subsidy?
“Freeman yesterday said simply that the new proposal does not demand an extra $3 million payment outright from Metro but relies solely on revenue generated by customers at the arena.”That’s the way it should be, let those who go to games and support the Predators financially support the franchise. Now, id, if you would have read the entire article, the new group is trying to generate more revenue to offset whatever Metro subsidizes for the Predators. Do you have a problem with that?
That last question is rhetorical. There for a second I forgot who I was asking.
gdiafante, I don't quite understand your "rhetorical" question. Do you only ask questions of people who share your opinion?
I can see why you wouldn’t understand Frank. Some people don’t want to see the Predators succeed AND the burden to Metro decreased.I’ve already said that I think the Predators would be better suited in a city that still doesn’t have one foot in the 1950’s. Maybe if they do leave they can convert the arena into a malt shop.
"Some people don’t want to see the Predators succeed AND the burden to Metro decreased."I don't think that is true at all. IF they were self sufficent then no body would care, however, they are far far far from that. You have schools, police, firemen, etc.. being told there is no more money, yet a FOR PROFIT entertainment venture is always standing at the front of the line with their hand out. THAT is what has people concerned.IF this new group had bought the team and then come out and said they are going to do something to make the team LESS of a burden on the city, I think THAT would have been a HUGE in PR. Instead they went the other way.
Didn’t Metro have a surplus? How can you say there’s no money for schools etc if there is a surplus?
Did y'all see the headline about The Sounds and their talks with the city of Franklin? bye bye Glen Yeager don't let the door hit ya!
Folks -- the City pays $13 million annually to pay for the construction debt and basic maintenance of the arena. It is owed whether there is a hockey team or not. To those of you who think supporting this venture is a waste of money -- just wait and see what happens to the arena and downtown with no hockey team. The team generates all kinds of economic activity that benefits the bottom line of Metro Davidson County and taxpayers. Even if you do not like sports or the Preds and never plan to attend a game, you should really really hope this team stays. . . .
Seriously? Can you not step back think about what losing a pro sports team will do to this city? Do you really think the Dells and Nissans of the world will relocate to a place that can't sustain multi-million dollar business? The Preds bring in hundreds of millions of dollars for downtown merchants, too. If they leave, all Nashvillians will certainly feel the impact even if you've never felt a desire to see live hockey.
Lets see, Dean can pour more money into hockey which has never been embraced by Nashville or find a way to get the ballpark built that will provide more dates, more people and more affordable prices for the fans.Seems like a tough call but not when you consider the open ended millions being spent by Metro on hockey and the limited amount it would take to get the ballpark built it is an easy call.
In the words of Sen. Ophelia Ford, "you need to get yourself better knowledged."
Seems like the new owners are doing what we asked them to do. Take some or all of the risk and have the people who use the arena pay the additional money needed to keep the team here. I read that they are NOT requesting that the City be obligated to buy tickets. Good for them. Why wouldn't we try to keep this team here given that if it moves it will take millions in tax dollars with it not to mention the "hit" to our reputation. I would rather give the team every nickel it and its fans generates in tax dollars and keep all the benifit of having a team here than stand on stupid priciple, give nothing to them, and watch as the team and all the same tax dollars fly off to KC anyway! Why would we, as a city do that???????? WEll duh.
The Sounds are going to Franklin?
"hundreds of millions of dollars"Sports teams do not generate money, they simply rediret it towards a different area. And if they are "generating" hundres of millions of dollars, then they shouldn't need that much support from the tax payers.If they can pass the cost on to the ticket buyers and take the risk from tax payers that's great. More power to them, but don't beg for more tax money when you can't get more than 8000 people to the home opener. Too me that says the people have voted, and they voted with their feet.
Papa, from what I understand, they are less than 3K short of a sellout for the home opener. That would indicate that at least 14K will show up for the game. Nice try.
hey MUZNIK, yeah let's tear it down and have more convenient parking. One Question- Not nearly as many people would be coming downtown w/out hockey!!! BIGPAPA- if you're going to simply lie then don't post anything at all. Only 8000 people going to the home opener?? yeah we average nearly 14000 a game last year and only 8000 for the home opener? You know that is untrue so STOP LYING. The Predators help downtown THRIVE, become more Family-Oriented, keep our restaurants from becoming BANKRUPT, bring prestige to our city, give fortune 500 companies more incentive to relocate to Nashville, and bring tons of revenue downtown. IDGAF- I would be that you did not want the Titans to come here, did not want the predators to come here, would not have wanted the parthenon built here, would want the sounds somewhere else, and was disappointed that Nissan, LP, etc. relocated here because they got tax breaks. Let me ask one thing, What kind of city would Nashville be if we did not have any of these things?? If you don't want your tax money spent on the things that make Nashville great then move!
Good at least they are close.
A lot of the problem is with the local media and the Predators marketing department. Has anyone heard of the home opener even being promoted? Compare that to the Titans home opener. I don’t think the Tennessean or most of the local television channels have any clue how to cover professional sports.
What kind of morons are posting here?Do you really think they would pluck down a 10 million dollar NON REFUNDABLE deposit if they couldn't make money as is?They are trying to con or bribe us out of more money.They didn't get to be millionairs by getting fleeced like you guys are begging for. I don't care if the fleece you but leave those that can think for themselves alone and don't extort our money.Titian everytime you post I think of that commericial that ends with "I'M IN DEBT UP TO MY EARS".
Let's stop and think about the economic impact the whole Preds organization makes to the city and not just how many fans show up for the games downtown. How many 'employees' are in the organization -- there are more than just the players and coaches. Somebody has to sell tickets, do the laundry, maintain the ice, look after promotions etc etc etc. How many live in the Nashville area? How many purchase products at local shops and restaurants? How many own thier homes and pay taxes? Hmmmmmm, seems a little short sighted to try and drive a business out of the city when we are trying to recruit new companies to the city.
idgaf I, along with these other "morons" as you say like titian, are thinking about what's good for Nashville and not just ourselves. The Predators are great for Nashville and we do not feel like we are being ripped off and we are willing to spend tax money for the Predators because of the entertainment and positive impact they bring.
idgaf, I only had one post on this story and it said "Let the whining begin" and you have done just that.
I really wish somebody would bring up the fact that the Preds help support "local resturants & bars." EVERY time the tax dollars for sports teams controversy comes up someone chimes with that. REALLY -do you think you are the first one to come up with that idea?
People keep talking about how much sports teams help out the restaurants because it's so true. Think back to broadway before the Predators... I remember porn shops and vacant stores in a dangerous, unwelcoming part of town. I really hope the Predators are sold to the local ownership to prevent these horrible times from coming back.
You’re right. 14K a game , 41 times a year brings ZERO revenue for downtown. How could I have been so blind? LOL
This is what the Chamber of Commerce says in response to nashbeck's question: Nashville Predators / Local Spending Impact· Predators generated total local direct spending of $369 million since first season (1998-99) through the present.· Predators generated total local direct off-site spending of $124 million in the same period. This includes over $10 million a year spent in local restaurants, hotels, and clubs/ bars, and over $3 million a year spent in gas and auto expenses.· The Predators Foundation has contributed $2 million to local charities.· The Predators have employed an equivalent of 115 full time persons in all full-season years since 1998-99.· The Predators have been extremely valuable in promoting the attractiveness of Nashville for business and workforce recruitment as the region’s economy grows.· The Predators have helped maintain a vibrant image to downtown, exposing residents, newcomers, and visitors to family event activities downtown on regular basis.
Gdiafante, I don't want the Predators to fail I just want them to succeed or fail without further subsidy. You did not answer my question. Do you only ask questions of people who share your opinion?
Are you paying attention Frank or have you been under a rock?