Predators May Owe City Of Nashville $400,000 In Seat Taxes

Predators Have Apparently Withheld $400,000 In Seat Taxes Without City's Knowledge

The Predators could owe the city of Nashville “almost $400,000 in seat taxes that the team apparently has been withholding from the city without its knowledge,” according to Brad Schrade in a front-page piece for the Nashville TENNESSEAN. A new lease agreement with the team signed by the city last April retroactive to July ’07 “says the club is supposed to pay the city a $1.75 fee per ticket sold for hockey games.” That money is “meant to offset Metro’s expenses at the city-owned Sommet Center.” But the team “hasn’t been paying the full amount” according to totals on ticket-settlement statements the Predators filed with the city. Team officials said that they “were operating under a provision in the previous lease signed in 1997 that allowed them to charge 5[%] of the ticket price or $1.75 -- whichever was less.” That meant “some cheaper seats had a lower ticket user fee.” Predators President of Business Operations Ed Lang “acknowledged there was a difference in the language of the lease.” Lang: “We’re trying to figure out, ‘Did something in the negotiations change?’ I’m relying on our attorneys right now. They’re reviewing it.” Lang added that “both sides had been operating under the belief that there was not a change.” But Schrade notes there is “no indication from the record that Metro tracked the seat use fee very closely.” According to city reports, the Predators through 34 regular-season home games this season “reported paid attendance of 471,083.” At $1.75 per ticket, that would be “about $825,000 in ticket taxes.” But the team “reported fees to the city of approximately $605,000 -- or an approximate $220,000 shortfall.” That “does not include preseason games or a couple of recent games of which reports were not available.” The Predators last  season “reported paid attendance of 600,043 for the regular season and playoffs” (Nashville TENNESSEAN, 3/19).