Menu
Franchises

Predators Are Not A Profitable Business Despite Public Subsidies, On-Ice Success

Millions of dollars in public funds and "unsurpassed on-ice success have not been able to turn the Nashville Predators into a profitable business," according to a front-page piece by Nate Rau of the Nashville TENNESSEAN. Predators Chair Tom Cigarran said that members of the ownership group "have been forced to put $60 million of their own money into the operation over the past five years, largely to cover losses." The city has given the Predators $38.6M "in the same period." Cigarran said that his group is "hunting for additional investors willing to kick in" $15-25M. Citing improved attendance and other business accomplishments, Cigarran "predicted the Predators will turn the corner soon on profitability." The team received $11.62M last year "in state and city money." Nashville Mayor Karl Dean’s office said that it is "confident in the Predators’ stability," but other Metro officials "expressed concern that the owners say the team is still not profitable." Predators CEO Jeff Cogen said that revenue from "private sponsorships at the arena -- another important benchmark of success for sports franchises -- is up about" 25% since he and team President & COO Sean Henry were hired in '10. Cogen "would not disclose the number of sponsors or how much revenue they generate." Another important source of money for the team "is subsidies and fees from the city and state." Dean has said that the city intends, in a "new deal being negotiated, to offer the Predators more incentive-based dollars and less guaranteed money." Cigarran said that the team "must receive city support near its current $7.8 million figure." In addition to that money, the Predators "receive money generated through state sales and privilege taxes, which vary based on volume but totaled $3.82 million last year." Cigarran said, "So we can’t not have the ability to get approximately what we have been getting and still be viable in the long run" (Nashville TENNESSEAN, 4/29).

TAX COLLECTOR: Rau in a separate piece noted city tax revenue paid to the Predators "was the focus of a labor dispute last year" between the NHL and the players union. The dispute was "ultimately settled with the league and the union agreeing to increase the hockey-related revenue pot by a total of $40 million." Predators management last month said that the "small segments" of some of the revenue streams that make up the city's $7.8M subsidy "do count as hockey-related revenue." But Cogen said that it would be a "mistake to conclude that Metro tax dollars end up in the pockets of NHL players." Cogen said, "If you’re saying Nashville tax dollars go to pay (Predators goalie) Pekka Rinne, that would be wrong" (Nashville TENNESSEAN, 4/29).

SBJ Morning Buzzcast: March 25, 2024

NFL meeting preview; MLB's opening week ad effort and remembering Peter Angelos.

Big Get Jay Wright, March Madness is upon us and ESPN locks up CFP

On this week’s pod, our Big Get is CBS Sports college basketball analyst Jay Wright. The NCAA Championship-winning coach shares his insight with SBJ’s Austin Karp on key hoops issues and why being well dressed is an important part of his success. Also on the show, Poynter Institute senior writer Tom Jones shares who he has up and who is down in sports media. Later, SBJ’s Ben Portnoy talks the latest on ESPN’s CFP extension and who CBS, TNT Sports and ESPN need to make deep runs in the men’s and women's NCAA basketball tournaments.

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Daily/Issues/2012/04/30/Franchises/Predators.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Daily/Issues/2012/04/30/Franchises/Predators.aspx

CLOSE