With little discussion and no dissent, the Metropolitan Sports Authority on Friday morning approved changes to the Predators lease at Bridgestone Arena.
The changes cut the city's $7.8 million subsidy to the team to $6.1 million in a deal that puts more value on performance incentives for Bridgestone Arena's manager.
The changes to the four-year-old agreement — which was inked shortly after the David Freeman-led ownership group bought the team — caps the net operating loss to the city at nearly $4.2 million (with annual adjustments of no more than 2.5 percent based on the consumer price index) and halves the management fee paid to the Preds to $1 million. However, the maximum incentive payment — equal to 50 percent of the increase in certain revenues from the base year of 2006 — increases from $2 million to $2.7 million. In addition, the Predators will be able to keep, as a performance bonus, any shortfall less than the $4.2 million loss cap.
Further, the non-school state portion of the sales taxes from non-hockey events — which previously went directly to the Predators — now goes to the Sports Authority under legislation that goes into effect July 1. The authority may transfer those funds to the team.
All told, under the new agreement, the Predators could receive as much as $8.4 million, of which the city's general fund obligation is $6.1 million.
The deal also adds a $2 fee — on top of the existing $2 seat user charge — to fund what will likely be a revolving line of credit for capital improvements at the 15-year-old facility. Those improvements will have to be approved by the Sports Authority.
There were seven last-minute changes to the agreement originally presented last week. Most were tweaks of legal language, but a substantive change came under the terms by which the Predators can terminate the agreement.
Under the lease, if, during any three-year period, the Predators lose a total of $10 million on top of the loss cap — currently $4.2 million annually — they may terminate the lease. Under a change approved Friday, that three-year period cannot include any season with fewer than 30 home games — in effect, any year with an extended work stoppage.
- ALEX B FRUIN INHERITANCE TRUST; CANDACE F STEFANSIC INHERITANCE TRUST; CANDANCE F STEFANSIC INHERITANCE TRUST; FRUIN, ALEX B TRUSTEE; FRUIN ALEX B INHERITANCE TRUST; STEFANSIC, CANDACE F TRUSTEE; STEFANSIC CANDACE F INHERITANCE TRUST; STEFANSIC CANDANCE F INHERITANCE TRUST
- ROSS, BRIDGETT D
- COOKE, ETHEN LANYARD TRUSTEE; COOKE, ETHEN LEWIS ESTATE
- JACOBS, JESSICA ALEXANDRA; JACOBS, ERIKA BESS