News Article: 13-14 ticket and revenue numbers

[PFL615]

http://nashvillepost.com/blogs/postsports/2014/4/29/preds_paid_attendance_rebounds_still_lags_halcyon_days

Click to read more...

 

[triggrman]

http://nashvillepost.com/blogs/postsports/2014/4/29/preds_paid_attendance_rebounds_still_lags_halcyon_days

Considering the 2nd year down year, I expected far worse.

 

[dulzhok]

Our gate revenue only covers half of our payroll.

Let's hope our welfare checks are big. Pony up NHL and city of Nashville.

 

[triggrman]

They make a ton off other events too.

 

[GeauxPreds]

^that

Bridgestone arena is one biggest arena's in the country for musical venues. If a big act comes into town, it's almost always there.

 

[dulzhok]

^that

Bridgestone arena is one biggest arena's in the country for musical venues. If a big act comes into town, it's almost always there.

That's money that would go to city of Nasvhille if not for a sweetheart deal the Preds have with the arena.

Money that's not going to the city of Nashville = tax payer subsidies for Predators.

 

[PredsV82]

That's money that would go to city of Nasvhille if not for a sweetheart deal the Preds have with the arena.

Money that's not going to the city of Nashville = tax payer subsidies for Predators.

That logic has been blown to pieces so many times its kinda silly to even bring it up

 

[dulzhok]

That logic has been blown to pieces so many times its kinda silly to even bring it up

If Preds aren't there, that arena is going to sell out all those events regardless.

It's not logic, it's just simply true.

 

[triggrman]

True, in part, you still have to pay a company to manage the facility though regardless And companies like mine, don't manage facilities cheaply. It's also a paid commercial for the city of Nashville.

 

[Viqsi]

That's money that would go to city of Nasvhille if not for a sweetheart deal the Preds have with the arena.

Money that's not going to the city of Nashville = tax payer subsidies for Predators.

By that logic, any dollar you don't hand over to the city government is a "taxpayer subsidy". Taxpayer money is going right into other people's pockets! OMG!

They run the arena and manage those events. They get compensated for it. That's not a "taxpayer subsidy" so much as it is standard business practice.

 

[101st_fan]

The "subsidy" (as listed in the Metro budget) pays the city's contractually obligated portion of arena operating expenses and the management fee. The other option is to make the Predators nothing more than a tenant and have the city pay all of the arena operating expenses and create an arena management division within the government. The more cost effective option becomes apparent to anyone running the numbers.

 

[AtlantaWhaler]

In addition to ticket sales and arena profit, there's TV, parking, and merchandise, too, among others. Overall good news.

 

[dulzhok]

True, in part, you still have to pay a company to manage the facility though regardless And companies like mine, don't manage facilities cheaply. It's also a paid commercial for the city of Nashville.

Bridgestone is one of the most sought after arena venues in the US.

Essentially, the city of Nashville is allowing them use it rent free, in addition allowing them to rent out and profit (don't know the exact breakdown) from renting it out on days they're not using it. Yes there are cost associated with running it, but it's one of the top grossing event arenas in the us. The money coming in is much greater.

Many cities have sweet heart arena deals. The Predator's deal is one of the sweetest. But don't fool yourself, it's a tax payer subsidy. And without it, the Predators likely aren't anywhere close to breaking even.

 

[SavageSteve]

Bridgestone is one of the most sought after arena venues in the US.

Essentially, the city of Nashville is allowing them use it rent free, in addition allowing them to rent out and profit (don't know the exact breakdown) from renting it out on days they're not using it. Yes there are cost associated with running it, but it's one of the top grossing event arenas in the us. The money coming in is much greater.

Many cities have sweet heart arena deals. The Predator's deal is one of the sweetest. But don't fool yourself, it's a tax payer subsidy. And without it, the Predators likely aren't anywhere close to breaking even.

However, Liarpold had a pretty sweet deal and couldn't figure out how to break even and seemed to have little interest in booking other events that just didn't come to him because he had no profit from it. Henry and Cogen have done a marvelous job of keeping the building humming with events year-round for the Pred's management and the city has rightly rewarded them for operating their asset well when previous ownership could not. Government's do not operate for profit, so if taxes and revenues from the venue offset the costs of owning that asset, Metro also seemingly got a good deal until someone else is brought in to manage the Arena after Henry and Cogen get lured away to a new opportunity.

 

[dulzhok]

However, Liarpold had a pretty sweet deal and couldn't figure out how to break even.

Most of the time Liepold had the team, he was not getting a big revenue sharing check from the NHL. That's one reason he wasn't breaking even.

Also, Nashville was not as hot in 2000 and there were not as many events to book.

Credit to booking them, but right now it's not hard.

No Nashville is not a for-profit business. But they have things that bring in money. Last I checked, Bridgetsone is losing money for the city of Nashville (or barely breaking even?).

Nashville has this huge asset that could be a bringing in a ton of money for the city. A lot of that benefit is going to Predators right now and it's helping them break even.

Sorry, it just bothers me that the Predators as a business would not be even close to break even if they didn't get major help from the NHL and city of Nashville.

 

[ThirdManIn]

Last I checked, tax payer subsidies would be a topic that falls under politics, thus if you have that particular gripe it needs to go to the political board.

 

[dubgeek]

Most of the time Liepold had the team, he was not getting a big revenue sharing check from the NHL. That's one reason he wasn't breaking even.

Also, Nashville was not as hot in 2000 and there were not as many events to book.

Credit to booking them, but right now it's not hard.

No Nashville is not a for-profit business. But they have things that bring in money. Last I checked, Bridgetsone is losing money for the city of Nashville (or barely breaking even?).

Nashville has this huge asset that could be a bringing in a ton of money for the city. A lot of that benefit is going to Predators right now and it's helping them break even.

Sorry, it just bothers me that the Predators as a business would not be even close to break even if they didn't get major help from the NHL and city of Nashville.

I'd like to see how that calculation pans out when you factor in all the money spent, ie. tax revenue, at the bars, restaurants, and hotels as a result of how busy Bridgestone is. As a result of how busy those places are, their employees earn more in extra shifts and tips. That's money they are then able to funnel right back in to the economy with their own purchasing power.

Sure, it's a subsidy. But if you think about it that's one of the main purposes of any government - use tax policy to subsidize and encourage businesses and industries that are beneficial to the community. There is also a certain cachet the city gets by being able to say it has two major professional sports teams.

Factor all of this in to the equation and I'll happily voice my approval for this "sweethart" deal all day, every day, thrice on Sunday.

 

[PFL615]

The city of Nashville is not losing money. If you need proof look at lower Broadway and the streets within 4 blocks of the Arena.

 

[NSH615]

I'd like to see how that calculation pans out when you factor in all the money spent, ie. tax revenue, at the bars, restaurants, and hotels as a result of how busy Bridgestone is. As a result of how busy those places are, their employees earn more in extra shifts and tips. That's money they are then able to funnel right back in to the economy with their own purchasing power.

Sure, it's a subsidy. But if you think about it that's one of the main purposes of any government - use tax policy to subsidize and encourage businesses and industries that are beneficial to the community. There is also a certain cachet the city gets by being able to say it has two major professional sports teams.

Factor all of this in to the equation and I'll happily voice my approval for this "sweethart" deal all day, every day, thrice on Sunday.

Exactly. Need no further proof than this article from back in Dec 2012 during the lockout.

http://www.wsmv.com/story/20297285/nhl-lockout-hitting-some-downtown-businesses-hard

 

[101st_fan]

The arena does lose money for the city. It started losing money for the city before there was a Predators franchise. The tens of millions of dollars in bond servicing every year are simply more than the arena generates.

That said, the management piece is a win/win for both the city and Preds. The city's financial exposure on arena expenses is now capped and the financial incentives for the manager to bring in more events results in more tax revenue (direct revenue from the arena alone, not including extra spending downtown) than under the old agreement.

 

[jwhouk]

...and what, pray tell, was the city getting from the property before the arena was built?