Nashville Mayor Makes Predators Bid Group Final Lease Offer

Nashville Mayor Presents Final Lease Offer To Predators Bid Group

Nashville Mayor Karl Dean made a “final, take-it-or-leave-it offer” Friday to the local Predators bid group led by 36 Venture Capital CEO David Freeman, proposing a "more generous arena lease in exchange for a commitment to stay in Nashville for five years,” according to Michael Cass of the Nashville TENNESSEAN. Under the deal, the Predators could relocate following the 2009-10 season if the investors lose $20M during that time and paid attendance falls below 14,000 per game. However, if the team leaves before the five years are up, it would “repay about $6.8[M] a year that the city would provide in operating support and management fees to the team and [Sommet Center], which the Predators would manage.” Dean said in a statement, “If the investors agree to these changes in the lease, the team will stay in Nashville for at least five years and if they are not able to do so, the additional investment made by the city will be returned.” Cass noted the offer included that ticket prices must “stay below NHL averages.” The city would continue to provide $3.8M a year in operating support for Sommet Center during the life of the lease, and the owners would “cap the city’s liability for arena operating losses” at the ’06 level of $3.8M. The city would also provide $3M a year in "management fees, rent reduction and other lease changes.” As an incentive, the owners would receive “half of all arena revenues above 2006 levels ... capped at $2[M] a year” (Nashville TENNESSEAN, 11/10).