Predators currently get about $8.4M annually in incentives, subsidies to run arena, book events

Subsidies paid out of Metro's general fund will be eliminated over the 30 years of the deal.

Details of the agreement are expected to be unveiled next week.

The Nashville Predators and Mayor David Briley's administration have reached an agreement that will keep the hockey franchise at Bridgestone Arena for decades to come and eliminate payments from the city's general fund.

The Predators currently receive about $8.4 million annually in incentives and subsidies to run the arena efficiently and book as many non-hockey events as possible. The team will continue to receive incentives to bring in concerts, but the operating subsidy that Metro pays out of its general fund will be eliminated once the deal takes effect, sources told The Tennessean.

The Predators will also continue to receive funds from ticket surcharges to pay for capital projects at Bridgestone Arena.

Details of the agreement are expected to be unveiled next week. The Predators and Briley's office did not immediately respond to requests for comment.

A lease extension for the Predators marks the second major professional sports deal for Briley, who took over as mayor in 2018. He also oversaw the finishing touches of the financing deal to build a new soccer stadium at the fairgrounds.

As recently as 2008, the concept of offering incentives and subsidies to the Predators was a contentious political issue. The team was nearly sold to a Canadian billionaire who had designs of moving the franchise out of Nashville, before a group of local investors swooped into buy the Predators.

But the key to stabilizing the operation was a favorable lease deal that was hammered out with then-Mayor Karl Dean shortly after he was elected in 2007.

Under the management of CEO Sean Henry and former CEO Jeff Cogen, the Predators invested heavily in upgrading the arena, running the building efficiently and booking as many concerts, rodeos, basketball tournaments and wrestling matches as possible.

The Predators benefit by receiving a portion of the sales tax collected from non-Predators events at Bridgestone Arena, which is regularly ranked among the busiest in the world by industry analysts.

When Dean updated the deal in 2012, the city maintained some risk by agreeing to cover operating losses. The new deal between Briley and the team will eliminate the operating subsidy from the general fund. That means only people who use the arena — and not the average taxpayer — will be paying for the tax incentives, which will then be reinvested in future upgrades.

Herb Fritch, the new chairman of the Predators' ownership group, said in January that owners have not had to answer capital calls in some time and described the business operation as "very stable."

It was not immediately clear if the 30-year arrangement begins immediately, or after the current deal is set to expire in 2028.

On the ice, the Predators have improved as well, regularly qualifying for the playoffs and reaching the Stanley Cup finals two years ago.

Reach Nate Rau at 615-259-8094 and nrau@tennessean.com. Follow on Twitter @tnnaterau.