Tuesday's notes: Concessions and concussions your words of the day
by Dirk Hoag on Aug 23, 2011 10:03 AM EDT
in Nashville Predators News
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PrintTwo main themes make up this morning's Nashville hockey notes - a former Pred talks about the serious post-concussion symptoms that are causing him to retire from the game, and controversial questions have been raised about a proposed contract extension between the Predators and their arena concessions operator, SportService.
Radio Note: NHL Home Ice, on SiriusXM (XM 92 and Sirius 207) will air their Predators preview, with Preds GM David Poile, this afternoon at 4:00 p.m. Central. Thanks to OTF reader Martin for the heads-up there.
And now, your morning hockey news...
Nashville Predators News
Preds Propose Letting Insider's Arena Contract Run To 2043 - NewsChannel5.com
There are some aspects of this story that smack of previous smear jobs against the Preds, but I'm withholding judgment overall just yet. I'm digging through the details and have some questions I want answered before saying one way or the other as to how this affects the team and the city.
In particular, the proposed revenue split for concession sales is a real head-scratcher. By my initial calculations, the arena would have to generate huge gains in sales before the Preds would earn an extra dime. That's due to the difference in how concessions sales would get split, with different percentage rates at various levels of revenue.
The table below breaks down how it works. Under the current agreement (assuming that requested upgrades were installed a while ago), the arena gets 45% of the first $6 million in concession sales, and 48% after that. Under the proposed agreement, the "sales fee" starts off at a lower rate, 38% on the first $5 million, and moving up from there, up to a maximum of 52% on anything over $8 million. Based on what I'm seeing, though, sales would have to hit close to the $20 million mark for the team to make any extra money on this portion of the contract. I put $20 million in the table below just to demonstrate the break-even point; the split continues at the same rate past that level.
| Current | Proposed | ||||||||
| start | end | Percent | Arena Cut | Total | start | end | Percent | Arena Cut | Total |
| 0 | 6,000,000 | 45% | 2,700,000 | 2,700,000 | 0 | 5,000,000 | 38% | 1,900,000 | 1,900,000 |
| 6,000,001 | 20,000,000 | 48% | 6,720,000 | 9,420,000 | 5,000,001 | 6,500,000 | 40% | 600,000 | 2,500,000 |
| 6,500,001 | 7,500,000 | 45% | 450,000 | 2,949,999 | |||||
| 7,500,001 | 8,000,000 | 50% | 250,000 | 3,199,999 | |||||
| 8,000,001 | 20,000,000 | 52% | 6,239,999 | 9,439,998 | |||||
Again, this is only looking at the concession sales; the terms for restaurant, catering, and suite sales are the same, while the club terms are slightly less favorable. In return, the Preds are getting Sportservice to take on some capital upgrades ($1.5 million iniitally, then 0.5% of gross receipts), money that conceivably might be requested from the City of Nashville instead.
This is complicated stuff, and I can see why it might raise eyebrows.
Predators, concessionaire close to new deal | nashvillepost.com
Increased efficiency in hot dog and beer delivery sound good, though! Damn the financials!
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Hard t see much controversy from just the numbers
One of the news channels reported gross sales of 14 million last year. The old contract would have a cut of 6,540,000 for the team, while the new contract would have a cut of 6,320,000. The difference is an underwhelming 220,000. Underwhelming because of the 1,500,000 in capital improvements that the taxpayer does not have to pay for. 6 or 7 years before the Preds (or Nashville) really just break even. Remember the old scoreboard? I do not miss it and the new one feels decidedly more up-market. The Preds are selling an experience and new is part of that.
The issue of who the contract goes to is no more an issue now than it was when it was awarded before. If its fishy now, its been fishy.
I’m trying to get clarification on that $14 million number, that may represent not just concession sales, but also the restaurant, catering, club & suite level stuff, which muddies the waters.
I agree, the issue of who gets the contract is not as big a deal. The one guy talking about “local jobs” has it all wrong. Aramark and Centerplate aren’t likely any more “local” than Sportservice, and going with anything less than a major national player is just asking for trouble (likely higher cost & lesser ability to fund capital improvements).
Managing Editor of On the Forecheck, SB Nation's blog covering the Nashville Predators, and founder of HockeyGearHQ, a site devoted to hockey equipment and accessories. Catch me on Twitter, or join OTF on Facebook!
Inflation
This is a no-brainer and am suprised the owners don’t jump on this. The difference now is negligable when you consider inflation through 30 years. 30 years ago, this would be like setting that line in the sand at around 1mil.
I'm all for anything that help the Preds and the arena make more concession $$$
What I don’t like are the all exclusive agreements with a vendor. And Hunt’s Bros Pizza doesn’t count. Many arenas and stadiums have local flavor vendors also. A Jack’s (or someone elses) BBQ sandwich or some Johnsonville Brats would be great to have at the arena. I believe the Vols T-B Arena still has Buddy’s BBQ. The dogs and other things they offer just plain suck! I’m used to paying high prices at venues because I know that’s how they pay them off and make profits, but I can’t count how many times I’ve seen the lines and said forget it, I’ll just go smoke a cigarette and get something after the game. But I’ve gotten to the point to make sure I eat before the game also. It’s no surprise revenues exceeded projections with the increase in attendance and it will only get better. But for God’s sake, please get better menu items at the arena like other venues around the country offer. Having been in over 50 Stadiums and Arenas around the planet, Bridgestones offerings are among the worst. JMO!
Having been in over 50 Stadiums and Arenas around the planet, Bridgestones offerings are among the worst. JMO!
True, but they have improved. I go to other arenas and wonder why our venue doesn’t have some of the offerings they have, however, I think they are far better than the offerings at LP Field. Can you imagine if Centerplate took over the arena? I’d never eat there again.
Btw, this article is more informative than the one posted.
???
That is the article I posted, isn’t it?
Managing Editor of On the Forecheck, SB Nation's blog covering the Nashville Predators, and founder of HockeyGearHQ, a site devoted to hockey equipment and accessories. Catch me on Twitter, or join OTF on Facebook!
Yep, he did??? But comparing LP Field offerings is setting the bar pretty low...the gutter in fact.
I guess my point is there’s no variety hence less reason to wait to get to the arena to eat there. I like what HP Arena has done as they have over 20 local food carts and concessions and AT&T Park at least 30. The garlic fries are to die for and the clam chowder bread bowls I truly miss. I know space is an issue but there’s plenty of areas where more could be set up on the concourses. The stadium/team gets an even bigger cut than the main vendor because the locals vendors will pay it and consider it advertising for fans to come to their actual resturants. More vendors means more profits. I don’t know how well traveled Preds fans are to other venues, but trips to several other arena/stadiums would show everybody what we’re missing here. My worry is the Preds get trapped in a long term exclusive vendor deal and better options come along and we’re stuck eating lame hot dogs at Bridgestone till we die.
No! You posted a much shorter version from the Nashville Post. This article is from Newschannel5 Investigates and has more info.
Look at the first link
Right under “Nashville Predators News”
Managing Editor of On the Forecheck, SB Nation's blog covering the Nashville Predators, and founder of HockeyGearHQ, a site devoted to hockey equipment and accessories. Catch me on Twitter, or join OTF on Facebook!
Centerplate and Aramark
I have to say that after experience with both of these, at nashville sounds and MTSU, I am very glad the Preds didn’t call either of them. It gives the arena a better chance of continuing to have edible food available.
Keys to the game: GA<GF
An article on Wade Belak came up on my Twitter feed
I had no idea he was physical issues like that. I’ve had cortisone shots in my hip before and it’s not fun. He has my sympathies on that. It should be fun to see him do bench interviews this season, though.
"I'm a firm believer that in life, if you're happy then happy things will happen for you."--Bernie Parent
Part Predator, part Lightning.
Do they take calls on this Sirius NHL preview show?
I have a question or two that I’d like to ask GMDP. :)
Belarussians play better as a family.......get AK46!
by Grizzledbear on Aug 23, 2011 11:17 AM EDT via mobile reply actions
That’s what they have call-screeners for…but nice try. ;)
by HardCorePredFan316 on Aug 23, 2011 12:34 PM EDT up reply actions
I do believe they'd bleep that out Gbear :P
"I'm a firm believer that in life, if you're happy then happy things will happen for you."--Bernie Parent
Part Predator, part Lightning.
I would have been very respectful while asking why the @%#* he hasn’t brought in scoring help yet. :D
Belarussians play better as a family.......get AK46!
by Grizzledbear on Aug 23, 2011 5:47 PM EDT via mobile up reply actions
When the arena football team was here, they got a bigger share of the concessions than the Preds did, because they were there first. So, at least they dont have to deal with that anymore.
World Wide Weber.
There is no tenderness or humanity in fanaticism.
~Joe Strummer
by cisar on Aug 23, 2011 11:47 AM EDT via mobile reply actions
Phil is a doofus
He and his colleagues at Ch. 5 give journalism a bad name. I pretty much tune out almost everything that comes out of NewsChannel5 Investigates. … I guess the news here is that Delaware North’s contract was extended 10 years. Oh, and a quote from Cunningham, right on cue. Yawn. I wouldn’t call Delaware North an NHL insider. They do a lot more than sports venues (like our own airport, for example). And I imagine they hire locally instead of bus people down from Boston. Not sure the Preds are required to bid out such contracts. But I’m pretty sure I don’t care.
Oh, and the food at Bridgestone? Not bad, in my opinion. Getting better. I may get into trouble for saying this, but we don’t exactly live in a foodie city. I think the offerings are fine.
They hire people to cook and run food, but try to get volunteers to work the stands as fund raisers. Not a whole lot of jobs being created, and part-time, at that. Any work is better than none, though.
World Wide Weber.
There is no tenderness or humanity in fanaticism.
~Joe Strummer
by cisar on Aug 23, 2011 2:41 PM EDT via mobile up reply actions
Did anyone get to hear Poile on Sirius?
Looking for a summary of his “assessment” of the team.
Belarussians play better as a family.......get AK46!
by Grizzledbear on Aug 23, 2011 7:42 PM EDT via mobile reply actions
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